again, i think a lesser of 2 evils. but there's an assumption that being "screwed" by the government is better because it results in less upfront costs as the system stands now. you've acknowledged that you're aware there are hidden costs when government gets involved based on your reply further down, so the real question is which system can be more efficient, based on both upfront and hidden costs.
further, we should consider the results for the economy as a whole when private enterprise engages in an activity for profit vs government engaging in the same activity w/o a profit motive. profits by businesses are not just shoved under a mattress. that money is used to fund new business, new employment, either directly or indirectly (through being saved in banks, which in turn loan out that money to other businesses).
conversely, what does government give back to the economy? government creates nothing. it saves nothing. it merely spends.
You are selling government way short. We don't call it venture capitalism when government does it, but they fund myriad new industries and businesses, as well as jobs by extension or bureaucratic jobs. IBM wouldn't exist if it weren't for government dollars. Tons of research is paid for by government, from which new businesses are created. GPS, cell phones, new battery technologies, you name it, government has funded. Lots of innovations have been funded by government when it was not cost effective for the private sector to do it. Yet government doesn't keep or own what they invest in. When government spends, it spends into new growth areas, into future technologies. I have a buddy who is contemplating starting a solar company (he worked on solar technology in grad school) because of incentives provided. Government spends on business loans and grants.
Government doesn't do everything great, and they shouldn't be involved everywhere, but they are the biggest venture capitalists playing in our economy. In fact, they should probably be handing out less money to businesses and individuals than they do.