Read a somewhat disappointing Richard Duncan article this morning in which he rightly criticizes the government propping up zombie industries but then goes on to suggest that the money could be better spent in other industries that encourage growth. I see this as a classic case of how most people view politics and economics "I think the government should
This is also what makes the libertarian view so hard to sell, how do you pitch a plan based on doing nothing? Of course the suggestion is not that nothing happens but rather that the world can self organize far more efficiently than a politician could ever plan. This in my view is what makes a politician, someone who forgets their just a human being, without perfect knowledge, and begins to imagine they can effectively manage the lives of other from a distance.
So maybe there is an economic intervention other that close all state departments except the police, drop all regulations and stop taxing that can help the economy. Does anyone have any suggestions as to what a positive economic intervention might be?
The government's role, economically, is to do things that private industry wont do that need to be done. The space program was an example of this. Research into medical advances that will save the lives of poor people would be a good example. Work on transportation backbones, as this is generally too large a project for private companies. Currently we are facing peak oil and without significant investments in an alternate transportation system the US is going to be in very big trouble soon. Building a new system (which would probably rely mostly on rail) is not something that is within the capability of any one company, or in their best interests, but it is still a vital project that needs to be completed.