“Intentionally doing a bad job” is the effect, but it’s not how they would see it - making people resort to supporting a privatized solution is, to most of them, doing a GOOD job. If they need to be awful leaders and public servants to get to that point, that’s just them trying to do a good job - with “a good job” defined as “privatize everything.”
Because one of the articles of faith of free market fundamentalism is that the free market would ALWAYS do it better. The free market is a moral good in and of itself.