Who believes these bureaucrats? It is in their best interests to lie.
People have also lost faith in their government because it's become so corrupt. Government is afraid of "fringe groups" rising up who'll expose them for what they are and what they've done - which is why they're attacking the Tea Party Patriots, for example. The truth being brought to light makes it even harder for them to keep up their facade.
More and more people are going galt. Going galt means no tax revenue. No tax revenue means no more vote buying and loss of political power.
The government is losing control, but they brought it upon themselves because they put themselves - their power, their luxuries, their families - ahead of the people they vowed to serve. Their chickens are coming home to roost, and the American people are going to suffer greatly because of it.