psss... your anarchy is showing ;) You made some great points here. Namely, that when government steps out of the way, or never stands in the path to begin with, innovation ensues.
In my research, it appears that things started to go south in America just around the setting of the first regulation of the Railroads. Prior to government, JP morgan and friends were hurting very badly as a result of the little guys being able to offer tickets cheaply. The level of competition had business falling over itself to impress customers and gain loyalty. By using the same fear you referenced above, morgan et al. were able to convince the other group of humans with the guns that the railroads and government should work together... ostensibly for the sake of the consumer. But the result was that the bar was suddenly thrust into the atmosphere where only the giants and magnates could afford to play, and the lack of competition made the railroadeers deaf to their customers feedback. And looking to today, it isn't hard to see what happens when the government becomes a non producing, only taking, partner. You try getting a ticket on a train to California... may as well fly.
The end is nigh people would have you believe that if government wasn't involved, trains and planes wouldn't run. Same with education, and welfare. Before government stepped in, we had a very robust education system. Was it perfect, no. It reminds me of this saying Im about to butcher: "let government raise your children, and in two generations no one will believe you could raise children without government"
Steemit, Crypto, and DAO's is where the future is going, and I'm enjoying this ride.