It's only insane if you think that every new law makes something illegal. A law can do just about anything: clarify or update the language of existing laws, create or amend a budget, add or revoke a subsidy for a product or economic activity, be a statement of purpose, or allocate funds for infrastructure projects. In other words, just claiming that "40,000" laws is insane doesn't really mean much. Governments work by way of laws, so this metric simply tells me that these governments are active. To determine whether or not their activity is insane, one must investigate the types of laws being passed.