Question: You have $1MM to invest and you must invest into the stock of one of two companies. The first one is profitable and clearly run well and efficiently. The second is not. Which do you invest in? How do you feel when you're told you HAVE to invest your hard-earned money into the second option? Of course those are rhetorical questions.
If your second company is supposed to represent the government, then we'll politely disagree on relative efficiency. The reason the government is not profitable is because it is not allowed to charge for it's services according to their costs. Instead, it is instructed by fiat to produce X services with a tax base of Y.
I've seen millions spent on a software design initiative, only to be scrapped for another million-dollar initiative two years later, only to be scrapped again after a merger two years later. This was in one department at Anthem, but I've heard of similar things in various departments at all sorts of private companies. There is a lot of randomness in whom the free market rewards.
The VA has horrible administrative efficiency, the IRS and SSA have high administrative efficiency (as a comparison of administrative dollar to amount of money moved). Naturally, the former gets headlines.
My thing is I get investing into America. Into education, R&D, infrastructure, the poor, military.. it's a necessary investment to make and one I fully support (the alternative would be stupid, no?). I just want my money being invested into a smart company/government. Will that day ever come? Extremely doubtful. Politicians will still fight over the raising or lowering of taxes .. and I'll still be bitching about waste.
I agree with investment, and with fighting waste. I just don't think "let the private sector do it" will be a waste-fighting solution.