Does anybody here have an interest in macroeconomics?

[ScottK]

What you describe is actually true capitalism and its effects. I will check out that video when I come back.

What true capitalism is is creative destruction.  When someone builds a better mousetrap, the old mousetrap company innovates or it goes out of business.  The role of government is to be the referee to make sure that process operates fairly - what if the old mousetrap company was allowed to steal the idea and shoot the owner of the new company?  That's precisely what is being allowed to happen today which is not capitalism.

If you don't have incentive, you don't have innovation.  Without innovation, we have a problem.