I do not think that neoliberalism will collapse the public sector. I think that while neoliberalism is bad for America, it will never get to a point where it will destroy the public sector. I think that at the end of the day, capitalism will still prove to be the best ideal.
Far right movements and ideals are always what cause the collapse of public sectors. People hear the word "fiscal conservative" and immediately think neocons are good with money. But, neoliberals actually have means to pay for the programs they institute and are more about a fair tax system. Sort of a ridiculous question.
The public sector will collapse because of the insolvent finances related to massive debt and not enough revenue in the public sector. More and more government agencies should be privatized to avert this coming fiscal disaster. Taxpayers don't want more taxes yet they don't want any reduction in government services. Something has to be done before the collapse of the public sector, but neoliberalism won't cause its collapse.
No, neoliberalism will not cause the collapse of the public sector, because we still need the public sector to do certain functions. We still need the public sector to provide for our common defense, to enforce property laws, and to provide law enforcement. These are things the private sector can't do, so the public sector will live on.
No, I do not think that this is in affect at all, so it is not going to collapse the public sector. I think that those who think that this is in effect right now are wrong, and that they are thinking way to hard in to all of this.