Instead, the question is whether a MONOPOLY (in this case, the government), that is insulated from prosecution under the law (bureaucrats), and insulated from market pressures (competition), is superior to a POLYPOLY, in which all members are subject to prosecution under the law (citizens) and subject to market pressures (competition).
The general theory is that monopolies are necessary to START regulation (government), but that once instituted that competing institutions subject to rule of law are superior to democratic and political influences (politicians, corruption, oligarchies), because each individual everywhere in society, if he holds legal standing under universal standing, is capable of policing the regulators.
The problem we have in government is that we cannot police the regulators ,and the implication that voting is a proxy for lawsuits is empirically false.
As such, removal of corporate protections and extension of liability to all employees of all organizations, and the granting of universal standing, and the requirement that anyone we would consider needing regulation be insured, allows us to construct competing insurance companies that replace corrupt monopoly bureaucracies in government as means of regulation.
SO it is not the degree of regulation that is the question, but whether regulation should be performed by monopolies or polypolies. And the answer is that most regulations must be legally imposed by the monopoly we call government, by requiring private insurance, and that the entire population is both responsible for and capable of policing those companies AND their insurers.
It should be fairly obvious that POLOPOLY under NOMOCRACY is a superior means of regulation because it eliminates the possibility of corruption endemic to monopolies. And equally obvious that the market will seek the level of regulation necessary for insurers and producers to defend themselves from activist citizens intent on controlling them by limiting them moral actions.
It is less obvious that it is government sanction of corruption and government delivery of regulation that is the cause of illicit business activity, precisely because during the early industrial revolution, governments who were envious of collecting new tax revenues granted protections to private businesses and removed the public’s common law ability to regulate such businesses.