Tuesday, April 28, 2009

"Government Is the Problem"?

Contrast that with this.

Money quotes:

Reagan: “In this present crisis, government is not the solution to our problems. Government is the problem.”

Obama: “I ask you to believe. Believe in yourselves. Believe in each other. Believe in the future we can build together…you and I together, we’ll change the country and change the world.”

"Power to the People!" rhetoric in both cases, to be sure. But behind it are very different ideas about the role of government in everyday American lives.

Just to quantify it a little bit, here's a chart of the top U.S. income tax rates over time. The chart is courtesy of the Tax Policy Center, which is a joint venture of the Brookings Institution and the Urban Instititute. Check out where the top tax rate was in 1980 -- when President Reagan took office -- and where it was when he left in 1988. That, my friends, is a sea change.

It's early in this administration, but it looks like we might be in for a similar kind of sea change in the way our government goes about its business. It won't likely lead to top tax rates back up in the 70% range, but it may very well lead to some fundamental shifts in the three areas the Obama administration has emphasized so far: energy, education, and health care.

Reagan has had a lasting effect on how people look at the role of government. It will be interesting to see if Obama does something similar. If he doesn't, it won't be for lack of trying.

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