The original post is a rather lame attempt at demonstrating the ‘perils’ of big government. In contrast to the OP’s goal of demonizing big government, the OP has instead unwittingly demonstrated the harm that can befall innocent citizens when powerful, politically-connected private individuals influence government to act in a deleterious manner.
This happens all too often. Regulators at the SEC know that if they look the other way when banksters are raping Main Street, that they will eventually get cush jobs on Wall Street. Regulators at the Minerals Management Service know that if they look the other way while BP rapes the Gulf Coast, they will be rewarded.
The real problem in America is the all-too-common insidious relationship between unscrupulous government regulators and powerful, politically-connected private individuals and corporations with no sense of morality and no fear of prosecution. The constant demonizing of ‘big government’ only serves to drive down the level of political discourse to an elementary-school level while drawing attention away from the real issues.