private sector has competition, goverment does not. They make their money through taxation not commerce, and there is where the incentives part ways.

gov get paid no matter what, private goes bankrupt if they screw up (replaced by someone better/cheaper)

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You could make it work in theory with some defined objectives. If you meet them you get a bonus and if you don’t then you’re re-evaluated (same as private sector).

But ultimately I agree, most things should be handled by private sector. Govt should be small and focused, transparent, accountable and competitive. It’s all about the incentives and proper way to motivating and rewarding people. It can be done.