The examples are numerous - please look around. Simple examples would include the rent control policies in New York and San Francisco. The intention: provide low cost rent for tenants at the expense of landlords. The reality: because of the rent control, the ROI for entering the rental business declined dramatically. This caused less development of rental units and rapidly increasing rents for the scarcer supply left. The result of rent control: chronically higher rents for all but those lucky enough to already be renting and a chronic under-supply of rental units. Other classic examples are the minimum wage which increases unemployment, medicare/Medicaid which drives up the cost of health care for all, excessive taxation to pay for all of the entitlements which is a disincentive to business, etc.
Despite which, the US economy remains one of the largest and most productive in the free world. Your examples do not support your assertion.
According to both the IMF and the World Bank, the world's 10 largest economies in 2006 were, in order, the EU, the US, Japan, Germany, the PRC, the UK, France, Italy, Canada, Spain and Brazil. Very mixed economies, every one. I really don't see how this supports the idea that they're being "dragged down."
Do you understand the point that the result of rent control is less rental units for renters, higher prices for renters, and less profit for landlords? How is that not dragging down what would otherwise be a sphere of creativity of landlords going out of their way to provide greater value to renters (to increase their profits) if the regulations were removed?
Also, how does the fact that the US economy does well in comparison to other more socialist countries in any way show that removing the socialist controls we have now would not improve our economy even more?
I maintain that it doesn't support your argument that our economy is being dragged down. You may argue that it's not growing at the rate you think it would, and I can respond by arguing that the resulting society isn't one I'd want to live in -- that's a different discussion. But the general trend of growth year over in real GDP (http://www.ers.usda.gov/Data/Macroeconomics/Data/HistoricalR...)
is not evidence of being "dragged down." The trend is broadly up.
Regarding your second point, this is a canard. The fact that the 10 largest, most successful economies in the world (in fact, most if not all of the top 20) incorporate elements of socialism (most to a much greater degree than the US) demonstrates that mixed economies can, and do, succeed. Your initial argument at least implies that a mixed economy is not a successful one. If I read that incorrectly, please tell me, because by most metrics, mixed economies are not only surviving, but prospering.
