Earlier quoted context omitted.
The difference here is that any exchange with a useless company is on a voluntary basis, whereas any exchange with the government is completely compulsory. If I don't give Useless Company X my money, they go out of business for not adding enough value. If I don't give my money to the government, they garnish my wages, put liens on my house and put me in prison, and continue to run inefficiently whilst piling up massi…
I think this idea that we can punish ineffectiveness in the private sector is pleasant to think about, but doesn't reflect our actual experience. Think of all the ineffective or downright hateful businesses you give your money to because there is no practical alternative: cable and internet providers, health insurers, banks, credit cards, ticketmaster, airlines, big box stores, domain registrars...
Credit cards facilitated online shopping and the internet as we know it. As someone whose taken credit cards, I hate giving up the 2.x%, but it's well worth it. Many businesses wouldn't be possible without credit cards. They're massively convenient. And AMEX totally washes the consumer's hands of fraud and damaged goods.
Business does well. Even the above cross-section of "downright hateful companies" are still pretty good businesses. And the scummiest ones are scummy because they're in bed with government. Cable/internet local monopolies, health insurers with the tax code, and banks with the... well, that's a long discussion and you've probably heard some of it.
Government branches can't go out of business. When they do poorly, they always say it's because they don't have enough money, and they get more. Business has a natural check on it - people have to like it enough to use it. You could skip airlines and take a boat or train or horse, you could use only cash and keep it in your mattress, you could use other alternatives. You don't, because those companies aren't perfect, but they do a pretty good job. I wish I could just "not use" the IRS, I wish I could just "not use" TSA, I wish I could just "pass" on going to the DMV and giving them money for a sticker or laminated piece of plastic.
No private sector company that isn't in bed with the government or run by powerful violent criminals is as nasty as the DMV, IRS, or TSA to its customers. And they don't go out of business.