Regan: "The nine most terrifying words in the english language are 'I'm from the government and I'm here to help.'" Norquist, again: "My goal is to cut government in half in twenty-five years, to get it down to the size where we can drown it in the bathtub."
What's ACTUALLY happening here is a combination of goals, ultimately about cutting social programs and reducing taxes for the wealthy. "Government doesn't work" => "We shouldn't pay them taxes" => "We should cut lots of taxes" => Tax breaks which overwhelmingly benefit rich donors and party members, while reducing services for people that need them... It's a straight up wealth transfer, and it's been exceedingly efficient.
If government does something well, then the first link in the chain is broken. So to keep the whole chain of reasoning intact, it's best to keep government inefficient and ineffectual, especially as it relates to people's everyday lives. And every failed program is another bit of fuel for the nihilist campaign strategy.