Interesting debate on the foundations of economic growth, but, I start from a different proposition: Economics is the beginning and end, with politics as an essential complementary system that either complements, competes with, redefines or redirects economics, and security is a sub-set of politics, and/or economics.

Growth is a different variable from economic performance, and the rate of growth, and allocation of growth may be defined by free market or political systems.

Whether politics can, and does create or expand growth is as case specific as whether it stifles or suppresses it.

By the 1950's, the US was ready to break out of the concentrated port city/rail model, but to do so it needed free and fast movement of freight and people across multiple competing districts and fractious highway systems. The federal highway act not only created express routes but limited the old fashioned speed traps, and convoluted by-passes and confusing signs intended, the same as "checkpoints" to obstruct free and effective movements, and the system could not be built or function without an alternative non-local funding and management system. Once it was in place, much new growth was created and sustained.

By contrast, even before Katrina, you could drive east from New Orleans and find a huge boondoggle of a road, infrastructure, industrial park platting for miles of vacant property. Pure corruption, waste and junk. Not surprisingly, the profits for much of that city's real estate market were made through political boons of sites, development opportunities, and financing for hotels, casinos, etc... (lots of officials went to jail afterwards).

The Land Between Two Rivers will always be an unproductive dust bowl (or, on occasion, a dangerous floodplain) unless managed along its whole reach. When well managed, much prosperity is produced. If I owned a business in Venezuela, it would struggle to profit in the economic/infrastructure environment created by Hugo.

A good friend who was a network reporter during Vietnam, and based in France, always said: if it isn't about money, its about love. She has seldom been wrong. (note: Money is power; respect is love---it is not just cash and babes).

Steve