The simple answer is: Because too many people are greedy, careless, self-centered, and stupid.
Virtually every government function is there to protect people from themselves, because while James Madison said, “If men were angels, no government would be necessary,” men and women are far from being angels.
We have a large bureaucracy devoted to regulating and policing the food industry because too many food producers were producing contaminated, spoiled or tainted food, or food with unhealthy or poisonous additives, or using preservatives that essentially poisoned consumers, largely because it was cheaper, and that increased their profits.
We have safety standards for vehicles for similar reasons. We have air pollution regulations because industrial fumes and exhaust once made the air so toxic it killed people, and water pollution regulations because rivers were once sewers that could also catch fire. We have drug regulations so that pharmacists don’t poison people. We have building standards and inspectors so that houses and buildings don’t collapse, as thousands of structures did in Turkey in the recent earthquake, apparently partly because corrupt inspectors were bought off to allow buildings to be constructed that didn’t meet the building standards.
The list of regulatory agencies seems endless, but that’s because every advance in technology also advances the possibilities for the greedy and the unscrupulous to prey on those without the knowledge or means to protect themselves. And because there are so many unprincipled individuals, those regulatory agencies also have to devote resources to assure that they’re not being corrupted as well.
Extensive government isn’t as necessary in lower-tech, low population density societies, where a failure of a building or a bridge harms only a few people. But in our society today, failure of a single bridge can kill hundreds, and damage an entire region economically.
Another reason for regulation is to make sure that cost-cutting doesn’t jeopardize safety.
An aircraft design with flaws, such as the 737-Max, can kill hundreds. Boeing presented the 737-Max to the FAA as a slightly updated version of the 737, rather than one with considerable modifications, in order to reduce the regulatory costs and possible delays.
A design flaw in a mass-produced automobile, such as Ford Pinto, which led to hundreds of deaths, could have been minimized or eliminated by the installation of a plastic buffer pad that cost all of one dollar. The buffer, which Ford tested, was rejected for cost reasons, saving Ford about $4 million over the production years before the gas tank problem was fixed.
So… if you want smaller government, you have two options – accept a far more risky and likely shorter life or find a way to make your fellow humans more responsible and less greedy, careless, and self-centered.
Personally, I’m not fond of the first option, and I find the second a practical impossibility, which leaves me with reluctant acceptance of large government.