How do government policies affect free market economies such as the u. s economy

The history tells us how countries with governments involved "too much" in economy and market laws just fell out in deep crises. As example of it, we have some latin american nations like Venezuela and Bolivia, where the governments have too much power ( almost dictatorships). More specifically Venezuela, a country with big sources of oil, that the government controls through giant state-owned enterprises, has currently a double digit inflation, enourmous poverty and violence rates. So my friend, I tell you that almost always less government means more wealth to the population, while more government means corruption, opression and fragile economy.
Hope this have helped!