Michael,
I certainly respect your consistency of principle, and I agree with some of your points, specifically the distorting effect of government "aid" in many areas of the economy.
The invisible hand is alive and well. But when it comes to medical and scientific research, the invisible hand doesn't work very well. For example, drug companies invest in research that produces a reasonably predictable, (increasingly short-term) benefit.
Consider the role of government funding in:
1. Prosthetics research and bionics. This aids our disabled veterans, for starters.
2. Shock trauma. Without significant government involvement and research, this field's advances would have been severely retarded. R Adams Cowley in fact used the government very effectively to overcome resistance to his ideas in the medical community. So many lives that would have been snuffed out in ill-equipped, under-staffed hospitals on Friday and Saturday nights continue because of government support for people like Dr. Cowley.
3. Congress declared the 1990s the "decade of the brain." Sounds like another idiotic "national beekeeper day" pronunciation, but this one actually directed federal attention and resources to the study of the brain. As a result of this declaration, many things we thought to be true about the brain have turned out completely false. The discoveries that are pouring forth today are astonishing and promise meaningful hope for those with neurological disorders and even formerly "hopeless" and devastating diseases like schizophrenia.
4. NIH grants have produced enormous breakthroughs in the treatment of even terminal diseases. For example, in the 1980s the average life expectancy of Cystic Fibrosis patients -- children -- was something like 16 years. Today, it's the mid-30s and some live into their 40s.
None of this would have been possible without government leadership and funding.
Just the neurological advances are astonishing. The work of the brilliant scientist V.S. Ramachandran (University of California, San Diego) was the subject of his Reith Lectures in 2003:
http://www.bbc.co.uk/radio4/reith2003/lecturer.shtmlFascinating stuff...
Cheers,
Mark