Sometimes a reasonably free market economy actually exists. In US aviation, the FAA only provides the most basic framework for experience and training requirements. They leave it to the insurance companies and operators to fill in the fine detail. No US operator is going to just throw somebody into an S-76 and say "Good luck!" No owner is going to let them. And, most of all, no US insurance underwriter is going to let them, either.
This system seems to work pretty well, and it is clearly not necessary for the government to regulate every single, tiny aspect of everything related to aviation. It can be difficult to find comparisons of general aviation accident rates between countries. However this Australian report seems to agree at least where US, CAN and AUS are concerned:
https://www.atsb.gov.au/media/32897/b20060002.pdf