I do think our regulation is half-assed, but that's mostly due to corruption and regulatory capture. I don't think it has anything to do with our penchant for rugged individualism, and far more to do with price-fixing healthcare cartels, cronyism, a ridiculously broken healthcare insurance system, and lawmakers who have been lobbied hard to not break up these schemes. Regulations have to actually be enforced (not selectively) to do any good, and they have to be created by people without perverse incentives. Small government is not the problem, it's corrupt government