It’s a response to Rand’s quote in #28 about there being no way to rule innocent men. That’s true, but a nation of innocent men, doesn’t exist. It sounds good, but that’s all.
The “ruling innocent men” is not meant to be the collective men. It is the individual man. I am difficult to rule if I am “innocent.” In this case, innocence would be defined as having not taken an action that requires a government action. So, if I am not fearful of government action I can not be “ruled” by the government.
How do you instill fear in those innocent men? You pass so many laws that you can “crack down” on everyone, whenever you please, because they are all now guilty.
In other words, you pass so many laws that each individual is now enslaved!