Feudalism is an unavoidable aspect of any properly functioning society regardless of the type of government. Replace lords, vassals, and peasants with the state, civil service workers, and the working class and it still functions the same. Any time the government has too much control it limits freedom of the people. This is also true in economics, so laissez faire capitalism isn't such a horrible thing. Of course, when it comes to to international trade a certain level of economic self-interest is important. Surely it's a delicate balance.
