Interesting Milton Friedman series. Old but relevant

"Milton says when we have more government.. Industrialists take it over and the two form a colatition"

You mean like what we had when George W. Bush instituted his small government, no nation-building policies?

First Clinton and continued with Bush.. yep..

One of Friedman's principle disciples is a fellow named Alan Greenspan, who had (note past tense) been a major opponent of government regulation. Last year however at a Congressional hearing looking into our current Financial meltdown, and his own role in it, Mr. Greenspan seems to have acknowledged that perhaps some government regulation is needed. In his own words.

“Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief,” he told the House Committee on Oversight and Government Reform.

http://www.nytimes.com/2008/10/24/business/economy/24panel.html

Greenspan was an idiot. His job at the Fed was partly to act as regulator. He ignored that. I think the term is negligence.