Definitely. If someone foolishly chooses to work for the government, where dealing with the proletariat is unavoidable, they should work in the crappiest of environments. I don't think we should even provide chairs, they should be standing so they work harder. Save the Fog Creek style offices for the übermensch who drive productivity and advancement towards the future.

You should realize that the real estate around the government offices in your city are high value because they were located near the government offices?