The idea that any legislation that Congresses passes is inherently bad is a very conservative one. To that way of thinking, any laws Congress passes are likely to be unwarranted interventions into the economy and into people's lives. Therefore, people would be better off if Congress passed fewer laws.
However, our current problems do not seem to stem from Congress passing too many laws. Instead, it seems as if our problems come about because Congress cannot pass the laws that need to be passed. For example, it is clear that Medicare and Social Security and the tax system need to be reformed. Our problems in that area come from the fact that Congress cannot agree on how to reform those things. This is not a problem with Congress passing too many laws but rather with Congress not passing the laws that are needed.
I do not think that people would be better off if Congress passed fewer laws. I think that we would be better off if Congress could agree on ways to fix our problems.