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In addition to what @SSCReader said, this is simply incorrect. And kind of ironic, because when people complain about the "generous salaries and great benefits" that feds get, that is only kind of true with respect to feds doing blue collar or very light white collar work. Admin assistants, HR people (hate them all you want but someone has to actually process paperwork for new hires, retirees, pay issues, etc.), installation and logistics, motor pool and janitorial services, etc., as well as many specialized government functions like IRS auditors and accountants - these are jobs where a GS employee might make more that his or her private sector counterpart. The job stability is a further bonus, which means many people do not see a government job as a "middle class job of last resort."
Now if you look at tech workers- software developers, engineers, research scientists, etc. - they are usually making considerably less than their private sector counterpart. They might take the government job because they want the stability and to get out of the contractor look-for-a-new-job-every-two-years rat race, they might take it because they want the work-life balance (government workers are almost never required to work more than a standard 40 hour week), they might genuinely believe in the mission of the agency they are with or find it to be interesting work. But they are generally speaking not losers who couldn't get a job anywhere else either.
Your "isolated mandarins" mostly applies to the folks at the top who do nothing but attend meetings all day in DC, or a certain tier of low-level workers who got an in early (maybe with a "useless communications degree" but often with no degree at all) and have never known anything but government work.
These people mostly don't live in ghettos (though many do live in working class neighborhoods in Baltimore or DC), but they mostly aren't living in those McMansions in NOVA either (those aren't government workers, those are lobbyists, contractors, lawyers, and other politician-adjacent people). They know plenty about the area and have plenty of contact with "the real world." I don't know where you get this fantasy that all government workers are "true believers" living in some rarefied academic bubble, and as for the idea that they just "uncritically believe anything popular that they've been told" - well, speaking of generalizations based on anecdata, have you ever actually met a FAANG employee? (Yeah, we have some here - and my point stands. Everyone, especially here, thinks they are an independent critical thinker unswayed by what moves the herd.)
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