I once had an international CEO ask me how it is a country like the US can produce companies like Microsoft, Google, Apple, GE etc. and still have all of the dysfunction in our politics and legal system that we have. It's a great question, and one i have been trying to figure out for years.
Ahh yes. The famed dysfunction of the U.S. Government.
Let me preface my comments by saying that while I recently joined the dark side, I was a life long Republican and small government type. Technically I was more interested in "rational" government than strictly small government, but still. So I am not a rabid big government librul, even today.
That said, my degree is in International Relations, which is basically a political science degree that included a lot of comparative politics classes where we study foreign governmental systems. And IMHO the key to U.S. success is extreme levels of transparency and oversight, along with checks and balances. As much as folks like to hate on government bureaucrats, ours are usually best in class when compared against other governments.
As a "for instance" that is much in the news, the U.S. Postal Service is the best in the world, by far -
Which country has the world's best postal service? Here are the top 6 | syracuse.com
You see that pattern repeated endlessly, with the U.S. being stocked with first rate agencies that are highly efficient in comparison to their counterparts. In the case of the U.S. Military, the comparative advantage is obvious, because its the only governmental agency that engages in combat with the foreign competition. NSA, CIA, FBI, Social Security, IRS, USDA, FDA, EPA, etc. All of them are comparatively efficient and are world class organizations. The difficult thing to do is to find a U.S. agency that is comparatively "bad." The worst U.S. agencies are likely one of the 2 or 3 best such organizations in the world.
The reason our companies are so amazing is because our government does an outstanding job of creating an environment where innovation can flourish. Most of the "dysfunction" occurs in the political limelight and is more show than reality. Even in the hyper polarized media saturated environment today, there are large numbers of Congressfolk doing important oversight and conducting the real business of the Federal government where the cameras aren't watching.