Every system has inefficiencies, including the government.

The fallacy is to assume that businesses inherently have less inefficiencies than government and/or that a government’s cost/benefit equation improves if it’s run as a business. Often, their functions overlap and this can be the case. Automated traffic monitoring is cheaper than having people count cars. But beware privatization that promises efficiency and lower costs—the result is almost always worse services, maintainable debt and in time a government bailout.

Often, their functions do not overlap. The purpose of social security is not to tighten spending as much as possible, it is to improve quality of life as much as possible.