This is an overview of the basic argument. Having trouble thinking of any writing on the subject specifically, it just seems obvious after studying libertarian principles & political incentives.
People in govt do better the more they steal. People in other sectors do better the more value they produce. But the more the govt steals the more resources they have to infect everything else. The more wealth created by a free market, the more theft people can afford to tolerate if they can be convinced it's legitimate in some form or fashion.
I will see what other relevant content I can find. Something like "The Use of Knowledge in Society" might be helpful, or the chapter(s) on prices & the broken window fallacy in Economics in One Lesson might be helpful when trying to grasp how market coordination works outside of govt direction.
The Bootleggers & Baptists theory of regulation is also probably relevant. And understanding that a law which steals $1 from each person but rewards some special interest to the tune of hundreds of millions will pass every time, because each individual only has $1 worth of incentive to fight the law, while lobbyists have millions in monetary incentives to promote it.
