"and now you have another large government bureaucracy which isn't so popular these days": That is exactly my point. Of course, if being a civil servant not only pays less (as adestefan says), but it also brings the stigma of being "just a bureaucrat", you're not going to have very good people there.

But things don't have necessarily to be so: Serving the common good is a very motivating goal for many people; not everybody just goes after the biggest paycheck. At least where money isn't the only measure for everything.