Debt, wealth redistribution, and welfare are not “economic drivers”

Another liberal is on the pages of the Albuquerque Journal claiming that the new health care law known as “ObamaCare” (a term that has now been embraced by the Administration) will spur New Mexico’s economy on to new heights.

Our own Dr. Deane Waldman has previously outlined the myriad reasons why the new health care law is a bad idea, but the real issue is that this whole discussion highlights the fact that many on the left simply don’t understand how economies develop and grow.

Government spending of any kind is at best a “zero-sum game.” It represents the proverbial pie that is to be split up among various groups (redistributed). This can be done more or less efficiently (usually less), but there is no innovation inherent in government spending (when is the last time government created something like the IPod?). Innovation, the development of new products and efficiencies is what drives our economy and our living standards. It is derived from the human mind, builds on the ideas of previous innovators, and thus improves our living standards.

Government cannot do this. Therefore, leftist claims that we’ll develop our economy based on trillions of additional federal debt, wealth redistribution, and putting more people on welfare are simply hot air.