I think you've nailed the problem exactly, Tim. For true believers in the principles of free-market capitalism, it is terrifying--heresy!--to suggest that government could be a better answer to anything.
Hence their antipathy to Social Security, public schools, anti-poverty programs, unemployment insurance, the USPS, housing projects, Medicaid, regulation of the finance industry, and any effort to protect the public and the environment from irresponsible businesses.
Their blind faith in the Free Market Gospel, coupled with the so-called president's ineptitude and disinterest in anything but his reelection, have cost tens of thousands of American lives. One wonders if even widespread homelessness and starvation will be enough to make them reconsider.