Here in Belgium there's a village that's famous for doing this. Currently there's about 100 people there who are living with another family. https://nl.wikipedia.org/wiki/Gezinsverpleging_(Geel) If you translate you can read about it.
Pournelle's iron law of bureaucracy: In any bureaucracy, the people devoted to the benefit of the bureaucracy itself always get in control and those dedicated to the goals that the bureaucracy is supposed to accomplish have less and less influence, and sometimes are eliminated entirely.
I expected to experience something similar, but on reading, it's so over the top that my brain has no problem realizing it's a joke. Violent movies on the other hand I can't really enjoy much anymore.
>Are laws written by mediocre people hence full of loopholes?
Guy once told me his job was to write some law in Spain, or for the EU, or somewhere in between. He submits his writings to his bosses, who tell him (paraphrased): "it's too clear, too watertight. Go back and make it more ambiguous." So he did.