I don't think your theory "Company efficient and rewards good work, Government inefficient and punishes good work" holds in reality. From what I have seen most large organizations are full of people that are good at navigating organizations but don't really care about the end product. And they keep hiring similar people so bureaucracy keeps growing. I have worked at Siemens, IBM and now a medical device company and it's been the same everywhere. Enormous amounts of money are spent on things that make no sense and nobody in power cares as long as they look good. And the paper pushers keep growing.