Earlier quoted context omitted.
Heh, that may be a factor, but I doubt it's the main one. Lots of American HN users seem to be pretty Liberal in their political outlook, and that's fine. But consider Germany, with a welfare state that looks after you from cradle to grave. If you want to start a startup there then you'd better have your EUR 20,000 in capital minimum, and you'd better do all the paperwork and comply with all the regulations and have…
I don't see any causative link here between the welfare state and excessive bureaucracy starting a company - would you mind explaining your thinking?
(No, I'm not taking a position on whether that's a good idea. I am not an economist, and I try not to play one on the Net.)