The fact that all candidates in the presidential race are appealing for greater government involvement is rather striking. Whether it entails more government regulation of the financial markets, addressing the country's infrastructure, a stimulus for the slowing economy, or ideas for dealing with the housing crisis, a larger allocation of the federal government's resources will be required. Certainly, there is a difference between the candidates over just how "big" government should be, yet the government seems to be on a path towards a decidedly expanded presence. As the article highlights, a growing sentiment exists for an expanded government role. That pressure was clearly visible in McCain's most recent position shift on tackling the housing crisis. While previously advocating government restraint in bailing out homeowners, McCain suggested the government should play an active role. It may be that this is all simply a short-term reaction to economic difficulties and that an increased government presents the best economic options on the table, but it all underscores the current public attitude in this campaign.
Even if the candidates made a concerted effort to restrict the federal government's growth, mandatory spending is essentially on a trajectory to expand without assistance. The projected growth of Medicare is astounding and largely undiscussed. Unlike discretionary spending, it's growth is on autopilot. While everyone seems to think Social Security is in dire straits, health care costs growing faster than the economy have placed Medicare in a position to substantially influence our long-term fiscal future.
From U.S. News & World Report:
Then there's the American public. The free-market policies of the past 25 years were preceded by a huge decline in American trust in government. But there's little sign that a decade of corporate blunders and scandals—from Enron to Citigroup—or even political fiascoes like Katrina has created a renewed enthusiasm for government. It's more like a pox on both their houses.
People have a fundamental distrust of both the private sector and the government, but the lack or political rhetoric devoted to getting "the government off our back" seems to go along way in demonstrating that an increased role for government may soon be coming. Hopefully, this is only a temporary phenomena aimed at capitalizing on current voting attitudes rather than a new public policy direction.
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