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In “Jack and the Beanstalk,” a prized possession retrieved from the evil giant is a goose that lays eggs of gold. That fabled goose has become a metaphor for things that provide enormous benefits. When the goose is mistreated, egg production slows; and killing the goose is the height of stupidity.

Yet, that is precisely what we are doing to the capitalistic economic system that has created millions of jobs, fostered innovation, promoted new technologies, raised the living standards of its citizens and made us the envy of the world. We are killing this goose by bleeding it dry. The instrument of exsanguination is government.

A government does not create wealth. It legally expropriates it through taxes. To be sure, this is a necessity for any organized political economic system. Governments need money to function. But modern history has shown that when you leave most of the wealth in the hands of citizens (capitalism), the country prospers much more than when you take it away (socialism or the ultimate, communism). We are now actively ignoring this fact by allowing government to greatly expand its responsibilities. Here are a few examples.

The Treasury Department takes over Fannie Mae and Freddie Mac, two of the nation’s largest financial firms, both with a focus on home mortgages. The government will be providing up to $200 billion in capital to the troubled companies. This follows the forced sale of investment bank Bear Stearns earlier this year, where the government guaranteed $25 billion in securities.

Automobile companies are requesting $50 billion in government loans to fund investment in new technologies and shore up weakened capital bases.

Governments of states affected by natural disasters (e.g., Florida) have replaced private insurers by writing millions of lower premium policies that will cost taxpayers billions when (not if) storms wreak havoc.

Higher gas and food prices have fostered political promises of middle- class relief paid for by higher taxes on the wealthy. In reality, these supposed “cuts” will be handouts legally seized from the most successful citizens.

Not included in the above are billions in subsidies for alternative energy ideas, without any proof of environmental benefit; promises of universal healthcare; billions more in earmark (“pork”) unnecessary spending; trillions in unfunded obligations; etc.

If this keeps up, the goose will die.