You are spot on. I've had 20+ years in private industry and things are really different when you work in a center or department that has to maintain a profit. If the profit drops, so does the head count. There is always some incentive to work hard and be the one to avoid losing your position.
Yet, the Liberals never see it this way. They question what the individual will do when they lose their cushy government job. I've performed plenty of work in several of the federal agencies in D.C. and it's truly sad how many people completely lack any motivation what-so-ever. All they seem to be doing is waiting their days out until they get to collect their pension.
Finally, the federal government employee count the same as the 1960s.