If your government is controlled by neoliberal capitalists, that is what might happen yes, and that is why we should do as much as we can to get a government that actually acts in the interest of the people.

Government isn’t inherently bad at doing things, you’ve just been conditioned to think that by this system that forces the government to self-sabotage. Of course, the self-sabotage only applies to social programs, they’re actually very good and efficient at subsidizing and lowering taxes for the wealthy, for instance.