Government fails in most areas. I agree with your point about administration costs, but don't you think politicians will come up with other things that they can spend the saved money on?
There's a lot of things they could spend money on that also wouldn't be a waste of money. Infrastructure could really use more money, the space program could definitely benefit from a pile of cash to both the public and private sectors, and funding for education is in serious need of an increase (as well as reforms to improve effectiveness).
Just because the government wastes money some places doesn't mean they're incapable of putting it to good use in other ways or that we should avoid good programs just because they might misspend savings from it.
