My point was that your choices presented an often-heard false dichotomy. Fundamentally, I think it's a mistake to equate "America" with the "Federal Government" or even "Government".
That being said - yes we could be more efficient. I'm doubtful that $1TN in deficits annually are attributable to waste though - are we really overpaying for services to the tune of $1TN? Possible, but doubtful.
Ah, but there's the sad sad assumption that causes us to put the noose around our own necks. Often times, the emotions and ignorance of voters are manipulated so that the money paid isn't going to "the children" or "healthcare savings", or "defense"... it's going to empower and enrich those in the government. We're actually paying for our own suffering.
I'm indifferent as to who administers it
I'm not. I'm a firm believer that local tends to be more accountable. As with software development, you don't spread authority and concerns all over your object model.