I like this formulation: just as "you are what you eat", government is what government spends. The government class is always in favor of higher taxes, more spending, and bigger government, in the same way that businessmen are in favor of higher share prices. We are what we spend. Emphasis below is mine.

And the debit side has to include much more than such obvious disasters as Solyndra. The government does support pharmaceutical and medical research in many ways -- but how many potentially useful pharmaceuticals and medical products have been kept off the market by the federal regulatory apparatus and the enormous costs it imposes on effective and defective products alike? (And how much damage has been done by the FDA's incompetent policing of defective products that do reach the market?) How many businesses have not been started, and how much innovation forgone, because of the state's rapacious appetite for capital? For a sense of scale, consider that, as of October 2011, the world's largest hedge-fund company was Bridgewater Associates of Westport, Conn., with $77.6 billion under management. That total is well less than Medicare loses to fraud year in and year out. You'd have to combine the assets of the three largest private-equity firms to match what Medicare loses to fraud in a typical year, whereas the holdings of venture-capital titans such as Andreessen Horowitz are hardly even rounding errors on that amount.

Would you invest with a firm with that record?

Government is what government does, and what government does is what government spends. Our government is a corrupt HMO with an underfunded pension plan attached, and a few aircraft carriers in tow. Contra Professor Mazzucato, the confiscatory taxes the federal government wishes to impose upon Apple et al. are not being used to replenish any such "innovation fund" as may exist in her imagination, but to prop up the corrupt, wasteful, and destructive programs that make up the great majority of its spending. Federal support for basic science research is pretty low on the list of things that small-government conservatives are worried about, and George Will is not entirely misguided in his admiration for the National Institutes of Health. But the neo-Nehruvian dream of the state as main entrepreneur cannot intellectually survive even the most modest attempt to balance benefits against costs.

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