>The government is going to suck at funding the right things.

The government is actually really really good at funding the right things. The grant process has been extremely successful in directing funding efficiently towards cutting edge ideas. It does this by handing off the decision making to experts who review proposals rather than having political/profit driven kingmakers.

In contrast corporate/VC money mostly only funds the latest shiny bauble that may result in exit liquidity in a few years. The minority investments in things like fusion are still only applied work and are built on decades of unprofitable basic science.

In other words. Government funding has basically funded every science/tech breakthrough of the last 80 years.