Final answer:
Ayn Rand believed that the American system of government is problematic because it excessively regulates and thus hinders individual freedom and innovation, aligning with her Objectivist philosophy.
Step-by-step explanation:
Ayn Rand was a fierce critic of the American system of government, particularly due to what she saw as its infringement on individual freedom and innovation. According to Rand’s philosophy, known as Objectivism, she believes that the problem with the American system of government is B) it hinders individual freedom and innovation due to excessive regulation. This belief is rooted in a broader critique of state regulations as they represent collective interference, and Rand’s opposition to collectivism and socialism, which she saw as antithetical to the entrepreneurial spirit and personal liberty. She staunchly advocated for a laissez-faire capitalist society where the government's role is limited to protecting individual rights, not managing or controlling the economy or individual behavior.