This is what the laffer curve is for. yes, no matter what type of political economy you have, if taxes are too high, there will be no incentive and wealth creation is crushed. the social contract does not nor should it encompass every aspect of our lives. this is why leninism failed. lack of accountablitly, and no vibrant market changes allowed. but there is a social contract. ie roads, military, ss, medicare, medicaid, unemployment insurance for a reasonable 6 months, police, fire...
leninism is a salient example of not wanting govt getting too big, so is the gsa corruption case on a micro level.
to big to fail banks, oligopolies, and brave new world is a salient example on why we dont want to much corporate influence...