You can do that with education, healthcare, transportation, security... You can have a private version of that.
Probably you can't have your own military, even that in the USA is not so clear.
Most people just can't afford the private version. The government version of that services is way cheaper, so you are stuck with it even if the government does not want to invest to have a good service.
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You and I can (and probably do), but the carrot it too sweet for the majority of users.
Now do that with the government.
It is a similar problem.
You can do that with education, healthcare, transportation, security... You can have a private version of that.
Probably you can't have your own military, even that in the USA is not so clear.
Most people just can't afford the private version. The government version of that services is way cheaper, so you are stuck with it even if the government does not want to invest to have a good service.