Let's take Social Security. You're saying the costs have increased, which is true due to the baby boomers. However, you should ask yourself why baby boomers have placed pretty much no stress or worry on private retirement companies.
Actually the same thing does happen in the private sector. When somebody chooses to buy into a mutual fund, they're told right away that the MER is 2%, meaning 2% of your entire investment is taken every year regardless of performance. When you factor in compounding over something like 40 years, that's a fairly significant chunk of cash that has gone missing from your investment. Then of course there are companies Sprint or Nissan where the pension comes up short time and time again. Then there are the worst of the worst, companies like Enron that completely lose all of their investors' money.
The private sector is no better than the government when it comes to screwing up, but they are held accountable when such a screwup happens. Several people went to jail over Enron, but nobody will ever go to jail for pissing away social security.