Incidentally, I just today read an article about some Finnish developers with experience developing big game titles in Silicon Valley. They had been thinking about where to set up their own business, and they chose to return to Finland. The reason to this is that despite pay being much higher in the US, the cost of living can also be high and things like daycare and education for kids are both superior and cost-effective here, despite them being paid through taxes. They even argued that the infrastructure we get through taxation should be a draw for knowledge-workers, especially if they're planning on a family.
I don't know about the American style of government, but the government-waste meme is not a natural law. Then again I fail to see how you could ever get to the point where we are in things like public education, as that would require individual steps to be taken that would be resisted as "Socialist".