You are missing the "waste" variable.  I realize you would think it is in the efficiency variables already as an inverse property, but it doesn't quite work like that.

Your comment is laid out like planned economics with economists at the helm.  I find most economists are frauds.  

The market is the best tool because of the unconsidered solutions (variables) that appear via the drive to survive.  Profit offers that drive.

Also, you invalidate your whole reasonless projection when the very things you're discussing are not (now) working as you're presenting.

Will your plan work for postal service? Furthermore, there's a question begging consideration: why does the fed gov't use tax dollars and make a profit? Or maybe the word then would be surplus, which brings us back to complicating unnecessarily, aka bs.