They absolutely do. Government funds aren't infinite. Watch the news. Congress puts out a budget every single year that dictates how much every single department agency and subprogram gets to spend. State and Local govs do the same thing. A lot of the money is accounted years in advance...
Generally agree with the bolded but "thriving" can mean different things. The private sector is doing fine for the folks that own it. The market is up and corporate profits are at an all time high.
Bankruptcies drop as company profits soar
The problem of the last 30 years has been with how to get non-owners to see the benefits of the private sector's success. The private sector has no obligation to keep Americans employed. They tried to sell folks on the bullshyt idea the 401Ks and home ownership made every person an "owner" but that turned out to be false too. That just makes you a pawn when shyt goes bad...
Not disagreeing with anything you said...the private sector needs to get its act together and start treating employees the way they should be treated. We don't value anyone anymore it seems. It's an employers market and its frankly disgusting what I see companies get away with.
But in terms of government funds...they obviously rely on the private sector to supply them...unfortunately everyone cant work for the government....they already tried that in Greece...