They've got tons of options. They could, for example, cut back the bloated private sector. ...but the governments are on the side of the government workers (m

They've got tons of options. They could, for example, cut back the bloated private sector. ...but the governments are on the side of the government workers (most government workers are unionized and these funds lobby the politicians). The result is that it becomes an "us vs them" fight, and while common citizens may theoretically have political power through the ballot box, in practice power is mostly exercised through campaign donations and backroom deals, so the politicians are taking the decisions that they're incentivized to take: stealing seed corn and feeding it to the public sector employees.