The Role of the State in the Creation of Wealth

Part of an ongoing discussion:

"Does government always destroy wealth?"

From the point of view of an economist, there are four types of goods.

"Free Goods" are things like air, or the sight of the beautiful moon, which need not and cannot be economized because they are not scarce enough. Unless you are planning to scuba dive, air is free. Your breathing the air does not deprive anyone else from breathing. Any good that is not a free good is scarce.

"Goods" refers to scarce goods that can be tra...