binip, my husband and I both work in the public sector as well, and both of us make less than half of what we could in the private sctor. In both of our cases, though, we really don't want to do the work we would have to do to make that money (basically...sell out, in DH's case especially). I do understand the feelings you have a little bit; DH especially sometimes feels like his expensive liberal arts education went to pot, but OTOH, there are many good things about his choice. It sounds like you don't feel the urgency to stay in the public sector anymore. Is it really too late? Because, and I apologize if I am blunt, you sound far more bitter than my DH on the days when I say, "Let's reassess...should you ditch this job and consult for XYZ Evil?"
It seems like money is more important to you than you realized it would be. I have a friend who is a raging, highly active liberal but who grew up in a very economically unstable household. We all thought she would grow up to be a poor activist, but instead she is an extremely wealthy IT manager who does do political stuff on the side. She really, really needed an stable lifestyle. I don't judge her for it. I get it.