What do you mean by "public policy"? If you mean statism then of course they aren't compatible. But if pubic policy means policy of a valid government, then they are compatible to the extent that the policy is a consequence of applying the right principles. Public policy is a consequence of political philosophy, and political philosophy is a consequence of ethics. Every politics implies and is based on an ethics.

This is an interesting question and area. I think about the line in Atlas Shrugged when John Galt says, "Get the hell out of my way!" The question, I don't think, is about public policy in general, but what kind of public policy. Is the policy to fix potholes or secure borders? I don't have much of a problem with that. Is the policy about doing away with the 4th Amendment? Problem.