Yes, this is the problem. We need some government to fix certain issues like regulate monopolies in industries where competition is difficult because of high initial capital requirements and exclusive ownership of infrastructure. But too much government creates more problems, so then we go back to reducing government. We end up in the current situation where every 1-2 election cycles we vote in rightwing parties, then leftwing parties, then rightwing parties, then leftwing parties.
You're also right that Mario Kart item generation is balanced such that the bottom players get better items to use as catch-up mechanics, while the top two players only draw banana peels and green shells. But when you're the top player, you're also free to drive at max speed, with maximum coins because nobody is knocking you over. But if you're a bad racer, you will make mistakes and others will catch up, so it's still your own merit if you win the race from that position.
The point I'm making is that morality is symmetry. Leftists see the asymmetry of outcomes as immoral, while rightwingers see the asymmetry of rules as immoral. Leftists want to rig the rules to allow players to win who otherwise wouldn't, but the system by which they try to fix this becomes too complicated and resource-heavy. Big government drains society's resources.
For example, in my country the taxes are so high, I closed my company last year. My ad revenue is considered "freelancing" and it's taxed only as income, so I don't have to pay VAT (value-added tax) which is 24%. I was also paying a 2500€ yearly mandatory pension payment, which was the main reason I closed my company. And now, without a company, I cannot enter the gaming business, because selling games is in the range of the VAT. I'd be breaking the law selling my games. I'm stuck writing articles.
Leftist governments have to tax everything, including startup companies to keep their system going, but this kills companies and their tax revenues. They are creating poverty by making the economy difficult for people of average intelligence and low starting income.
Both political sides, the right and the left, are correct, and we cannot achieve a workable status quo without taking into account different view points. But the current leftist dogma puts certain values too high on their value hierarchy, which motivates them to sacrifice other important values, ie. freedom of speech, rule of law, the non-aggression principle, which were integral in making western societies the economic power houses of the world.