That's not necessarily true, it depends how inefficient the government is. for example, in my city the city controls trash pickup and tried to social engineer more composting/recycling by cutting trash pickup days to once every two weeks instead of every week. A private enterprise has sprung up offering the second pickup for the same price the city charges. They are able to provide that in the vastly less efficient setup of only a few people on each block using them, the city being dicks and not letting them collect from the city provided trash cans, etc. That tells you for this service the correct thing for the city to do is fire all the inefficient people they are employing and support private enterprise in gaining the efficiencies from automation and a bigger market and providing an even lower cost service. I suspect there are tons of services the city provides that are extremely inefficient as above.