>Why should the we accept the continued downfall of public institutions
A government spending less money does not equate to spending less money on public institutions. It can even mean spending more money on public institutions, assuming less money is spent on other things, such as unproductive wealth transfers.
So benefits i guess? Or pensions? Sounds like you want the government to only spend money on capital projects which is reasonable, but it'll be very difficult to get there from here, given all the benefits/transfers that governments engage in.