Interesting perspective. Thanks for sharing!
I'd be interested in knowing where you think that government spending in any western democratic country is in direct competition with free-market companies.
I'm interested because it seems to me that most government spending is on things that free-market companies need, but would never be able to do for themselves like creating an educated work force, developing infrastructure and keeping the work force healthy. From my perspective, since the 80's, privatization of institutions that were once the domains of governments means that in western democratic governments, virtually everything that can make money in a free market is in the hands of private companies.
But perhaps you're thinking of some specific counter-examples?