That’s true in principle, but it’s not a significant factor in the aggregate. Almost all US social programs are government-administered. To your example, we are behind Western Europe in the area of school choice: https://www.edchoice.org/engage/faqs/how-does-school-choice-...

Similar stories about in other areas. In Europe it is common for private companies to operate transit systems. (Stockholm’s subway is operated by the same company that operates Hong Kong’s.) In the US, nearly every large transit system is operated by government workers on the government payroll.