I would disagree with that on principle and in observation.

However you are missing the point. Even if you suggest that it could be done better by the public sector, the mere existence of the public sector program is not evidence that the public sector solution is optimal. An appeal to the status quo may have pragmatic relevance, but it doesn't rationalize public sector solutions as optimal.

We will have to agree to disagree where you assert that we would all be naked, homeless and starving if not for the public sector.