Of course the State doesn’t create any wealth. But it sure keeps busy moving it around a lot. The governing classes and bureaucracies have been doing it so long and on such a ballooning scale that by now it is inexcusable to have missed what happens when the State stovepipes money to a particular recipient group: costs go through the roof.
You may have noticed the hand of the state in blowing up the housing bubble. If you came along too late for that show, look at the education bubble instead. Student loan debt is now over a trillion dollars, even larger than total U.S. credit card debt. And it keeps growing. All that State guaranteed loan money has simply blown up the cost of higher education, transferring wealth from students to the professorial classes and education elite, and further trivializing education with silly, taxpayer-subsidized classes. (Why, really, should a university offer three credit hours to study Lady Gaga? Would it be so difficult for someone that interested to just, y’know, read a book?)