> The government is the body for setting up the economic rules, it is not bound by it.
When a new law is proposed, the Congressional Budget Office prepares a report on the impact it will have on the budget.
Now suppose a new law is proposed that will remove an existing unfair advantage of large companies over small ones, causing more small companies to form and take market share from incumbent larger ones. If large companies pay a 50% tax rate and small companies pay a 10% tax rate, the CBO analysis will show tax revenue going down. Then in order to make up the shortfall at a given level of deficit spending, the government would have to raise taxes or reduce spending, both of which are unpopular, so instead the bill gets tabled and the huge companies retain their unfair advantage. That's the perverse incentive we don't want to see.
> Money is created by the government, it doesn't have a value yet.
If the government can create an unlimited amount of money with no drawbacks, why don't they just send everyone a check for a trillion dollars? If they can't then whatever they want to spend in excess of what they can get away with printing or borrowing has to come from tax revenues, and then what happens when you set up an incentive structure where the government gets more money to spend the bigger they allow companies to get?
> Sure, there are a lot of idiots now-a-days, that think a state should work like a business and make profits, but they are misled.
This is a straw man. The only people who think the government should make a net profit are the people trying to build some kind of sovereign wealth fund. The US government isn't doing anything even resembling that -- it has been running massive deficits for decades. It's to the point that interest on the debt is now a major component of the budget -- we're now spending about as much on interest as on Medicare.