> You do reduce the workforce through attrition, but eventually you have to hire again and hire almost exclusively junior people (< 25 or 30).
This wouldn't be true if government pay was competitive (low pay partially offset by, particularly, pension benefits means entering government mid-career except as a box-checking thing to move to a private position leveraging the knowledge of government is discouraged, but entering at a junior level for a full career is less discouraged.)
Of course, the kind of people embracing starve the beast aren't going to mitigate the skill impact by improving pay.