Government is prone to being highly inefficient compared to the private sector because there is no competition (since the government is a monopoly), and therefore no need to ever improve or innovate, especially efficiently.
Discussion
And so, for being more "grounded in reality", in that sense, the private sector tends to make more sensible (less wasteful) choices.
But also the private sector seems to adress big masses very well, while minorities are ignored.
But I totally agree, that as long as the world is turning, there will always be inefficiency and room for improvement.
But I think demicratically governed organisations have the advantage in getting tailored solutions for needs, the private sector is not coming up with solutions.