Government has been responsible for the largest undertakings in human history. Space flight, nuclear weaponry and energy, particle colliders, etc.
The mistake many libertarians make is to argue that government is inherently incompetent. This viewpoint contradicts reality. Government agencies which attract smart people can be as successful as any private company. Large private companies can be as bureaucratic as any government agency.
The fundamental difference is that there's no way to get rid of bloated and ineffective government organisations. NASA is a good example: in the 1960s it was the place where every bright young engineer and scientist wanted to work, but over the decades it stagnated into another bureaucracy dominated by non-technical folk chasing pork-barrel funding.
It may be practically difficult to do so, but there is definitely a way to do so, and its usually quite obvious from the manner in which those government organizations are structured and chartered in the first place.
Plenty of government organizations that have been viewed as "bloated", "inefficient", or otherwise undesirable have, in fact, been gotten rid of.
Our telecom networks used to be effectively nationalized. You couldn't even choose your own telephone. Back when the government had a role in running the actual backbone, there were restrictions on commerce on the Internet!