>Excessive coercion eventually leads to the population “giving up”: voluntary unemployment/underemployment rises, productivity falls off a cliff, accidents increase, and corruption skyrockets.

Sooo, what we're seeing the early stages of in the US right now?

Early stages, possibly. Depends on how/if things escalate or if we deviate towards reform. We’re still a long way from the most brutal totalitarian regimes of the last century.