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Let us never forget that government is ourselves
and not an alien power over us. FDR

www.RediscoveringGovernment.org
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FDR SAI D, GOVERNMENT I S OURSELVES. Reagan said, Government is the problem. Differing
perspectives on government have defined the public narrative and political actions throughout American
history. Now its our turn to script the future.

In March 2012, the Roosevelt Institute launched its flagship initiative, Rediscovering Government, to develop a
new narrative to counter the anti-government language, attitudes, and policies that have dominated American
politics for a generation. Led by Senior Fellow Jeff Madrick, Rediscovering Government will create a national
conversation about the role of government, and promote active government in the public discourse. As a
result, the program will provide access to innovative scholars conducting incisive research on the purpose of
government and will equip progressive advocates, grassroots organizations, and the media with language
necessary for a strong and well-informed defense of active government.

Through its roadshow, website, and a series of publications by innovative thinkers, the initiative provides a
detailed snapshot of the evolving role of government overtime, depicting the ways in which government has
fueled innovation, supported social justice, and improved quality of life in America. Using this historical
framework, the initiative debunks myths like big government impedes growth and Social Security is going
bankrupt and engages stakeholders in participatory sessions that ask what role do you think government
should play? and what issues should government be responsible for addressing?, and asks participants to
define the kind of government they want to create together.


JEFF MADRI CK is a Senior Fellow at the Roosevelt Institute, economics columnist at Harpers Magazine
and editor of Challenge Magazine. He is a regular contributor to The New York Review of Books, former
economics columnist for The New York Times, and author of several books, including The Case For Big
Government and Age of Greed.

GET I NVOLVED!

Define the kind of government we want to create together.
|Join Us| www.RooseveltInstitute.org/JoinUs

How does the government effect your daily life?
|Tumblr | http://rediscovergov.tumblr.com/

What role do you think government should play?
|Facebook | http://www.facebook.com/RediscoveringGovernment

What issues do you think the government should be responsible for addressing?
|Twitter | http://twitter.com/RediscoverGov

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Help REDI SCOVERI NG GOVERNMENT spread the word about all the ways in which government
supports us join our Brought to You by the Government sticker campaign!

1 ) REQUEST STICKERS
Email Name, Address, Affiliation and # of Stickers to info@rooseveltinstitute.org

2) SHARE IN THE FUN
Grab your friends, family, coworkers, and pets and put stickers on everything your local, state or federal government
supports, like transportation, education, infrastructure and public services!

3) POST YOUR PHOTOS
Submit your photos via email or Twitter. Tweet your photo and caption with the hash tag #RediscoverGov and check
back on Tumblr to find your photo! Or email your photos and captions to spfeifer@rooseveltinstitute.org
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MYTH-BUSTI NG THE ROLE OF GOVERNMENT IN THE ECONOMY





MYTH: BIG GOVERNMENT IMPEDES GROWTH.
TRUTH: Economic history does not find any net cost in GDP from democratic large-budget welfare states. They avoided
any net GDP cost while achieving many social goals: reducing poverty and inequality, extending life spans, and having
cleaner government. In addition, their government budget deficits are no greater, and people are no less happy in these
large-budget welfare states.
LEARN MORE HERE: Peter Lindert, Distinguished Research Professor of Economics, University of California Davis
http://www.rooseveltinstitute.org/government-social-programs-and-economic-growth-verdicts-history


MYTH: HIGH TAXES CREATE DISINCENTIVES.
TRUTH: There have been many econometric studies of cross-country data that have attempted to estimate the effects
of the overall level of taxes on economic growth, and many other econometric studies (using a variety of types of data)
that have attempted to estimate the causal effect of changes in marginal income tax rates on peoples' efforts to earn
income. Neither approach has provided convincing evidence of a strong negative effect of taxes on long-run real
economic activity.
LEARN MORE HERE: Jon Bakija, Professor of Economics, Williams College http://www.rooseveltinstitute.org/jon-bakija-handout-
myths-about-government-roundtable




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MYTH-BUSTI NG THE ROLE OF GOVERNMENT IN THE ECONOMY




MYTH: FREE MARKETS DISTRIBUTE INCOME FAIRLY AND EQUITABLY.
TRUTH: When the country prospers, everyone should prosper. In the period between World War II and the mid-to-late
1970s, economic growth was good for Americans in the middle and below. Since then, however, relatively little of our
economy's growth has reached households in the lower half. Wages for this group have barely budged. Rising
employment helped in the 1980s and 1990s, but that wasn't enough to ensure that incomes kept pace with economic
growth, and employment stopped increasing after 2000. Government transfers are another key source of income for
many households in the lower half, but they too have lagged behind growth of the economy.
LEARN MORE HERE: Lane Kenworthy, Professor of Sociology and Political Science, University of Arizona
http://www.rooseveltinstitute.org/americas-struggling-lower-half-lane-kenworthy-paper-myths-about-government-roundtable


MYTH: SOCIAL SECURITY IS GOING BANKRUPT.
TRUTH: Social Security, which provides more universal, more fair, more efficient, and more adequate retirement income,
life insurance, and disability insurance than its private sector counterparts, is an important stabilizing mechanism for the
entire economy. Once trust funds are exhausted, and even with no change to policy before 2033, Social Security will still
be able to support 75% of costs through payroll tax assets. Moreover, the solvency gap could be easily closed through a
combination of removing the taxable income cap (currently at $110,000 / year) and increasing payroll taxes.
LEARN MORE HERE: Monique Morrissey, Economic Policy Institute - http://www.epi.org/blog/social-security-debate-talking-points/
Paul Van de Water, Off the Charts http://www.offthechartsblog.org/no-social-security-and-medicare-arent-going-bankrupt/
Jeff Madrick, Roosevelt Institute - http://www.nextnewdeal.net/rediscovering-government/ignore-deficit-hawks-social-security-easy-
fix?utm_source=Next+New+Deal+Newsletter&utm_campaign=c0e70d085c-NND_Weekly_8_16_128_16_2012&utm_medium=email
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MYTH-BUSTI NG THE ROLE OF GOVERNMENT IN THE ECONOMY





MYTH: AMERICANS PAY INCREASINGLY HIGH TAXES.
TRUTH: On July 10th, the Congressional Budget Office, a non-partisan organization, reported that Americans paid the
lowest Federal taxes in 30 years under Obama in 2009. When taxes were lowered, they took the form of cuts in payroll
taxes. A New York Times/CBS News poll in Fall 2010 said that fewer than 10% of Americans knew their taxes had been
cut.
LEARN MORE HERE: The Distribution of Household Income and Federal Taxes, 2008 and 2009, Congressional Budget Office
http://www.cbo.gov/publication/43373



MYTH: GOVERNMENT BUDGETS SHOULD BE BALANCED. OUR CURRENT DEBT IS UNPRECEDENTED AND WILL
CREATE AN ECONOMIC DISASTER.
TRUTH: There is no obvious maximum level of debt at which the economy starts to slow. Our current debt is not the
largest in history; in 1946, when the country was experiencing a war boom, public debt was 108.7% of GDP compared to
67.7% of GDP in 2011. Nor is our federal deficit unprecedented. The deficit in 1943 was the inflation-adjusted equivalent
of $4.3 trillion today compared to 2012s projected deficit of $1.33 trillion.
LEARN MORE HERE: Josh Bivens & John Irons http://www.epi.org/publication/bp271/
The White House, Office of Management and Budget - http://www.whitehouse.gov/omb/overview,
http://www.whitehouse.gov/omb/budget/Historicals
NPR - http://www.npr.org/templates/story/story.php?storyId=112339032


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MYTH-BUSTI NG THE ROLE OF GOVERNMENT IN THE ECONOMY






MYTH: A LARGE FINANCIAL SECTOR IS NECESSARY FOR ECONOMIC GROWTH.
TRUTH: Recent studies using econometrics techniques found that a too-large financial sector impedes economic growth.
In fact, countries with big financial sectors could benefit from regulatory policies and enforcement.
LEARN MORE HERE: Ugo Panizza, Chief Economist with United Nations Conference on Trade and Development
http://www.rooseveltinstitute.org/can-tighter-financial-regulation-and-small-financial-sector-increase-economic-growth



MYTH: SMALL GOVERNMENT IS KEY TO ECONOMIC VITALITY.
TRUTH: The government has played a large role in the economy for over a century. The establishment of free public
schools in the second half of the 19th century evened the playing field for poor children. Large-scale national public
transportation, the creation of the public school system, and the Glass-Steagall Act of 1933 are examples of positive
government contributions to the economy.
LEARN MORE HERE: Jeff Madrick, Roosevelt Institute - http://www.rooseveltinstitute.org/brief-history-us-government-and-economy




n tbe 8os, local governments began
uevelolng free manuatory rlmary
scbools. By 8o, tbe natlon sent as many
cblluren to scbool as ulu tbe former leauer
ln euucatlon, lrussla.
Covernment sulleu guaranteeu
mllltary contracts to suort tbe
lncboate nrearms lnuustry, wbere tbe
^merlcan system of mass rouuctlon
tbrougb tbe creatlon of lntercbangeable
arts was createu. 1bls system lalu tbe
bullulng blocls for Henry loru's mass bullulng blocls for Henry loru's mass
rouuctlon of automoblles balf a
century later.
1be feueral government subslulzeu new
tecbnlcal anu agrlcultural colleges - wblcb
later became unlversltles llle M1 anu UC
Berleley - by glvlng tbem lanu tbey coulu
sell to nnance tbemselves.
1brougbout tbe 8oos anu ;oos, feueral
anu state governments manageu anu
lmlementeu vacclnatlon ollcles for
^merlcans, startlng most notably wltb
smallox ln tbe mlu-8oos.
Larly ^merlcan government
owneu most of tbe lanu ln tbe
country anu establlsbeu
regulatlons to sell
lt cbealy.
Nlneteentb-century government
senulng usbereu ln an era of
commerclal traue tbat enableu
tbe natlon to Nourlsb.
Beglnnlng ln tbe 8:os,
JeFerson's arty nnanceu anu
bullt canals tbrougb state bullt canals tbrougb state
governments ln New Yorl,
Massacbusetts, Delaware,
lennsylvanla, New Jersey, anu
elsewbere. ^er tbe Clvll War,
government subslules,
accountlng for o of costs,
surreu ralu rallroau surreu ralu rallroau
ueveloment.
1be courts createu laws tbat
enableu ^merlcan buslnesses to
comete more eFectlvely anu
rotecteu tbem from creultors lf
tbey went banlrut. ^merlcan
cororatlons were gulclly more
cometltlve tban Brltlsb cometltlve tban Brltlsb
cororatlons.
State anu local governments bullt
blgb scbools, anu blgb scbool
grauuatlon rates soareu. 1bls feu tbe
neeu for better euucateu worlers ln
retalllng, accountlng, anu even
manufacturlng.
1owarus tbe enu of tbe
nlneteentb-century, local
governments began bullulng
sanltary water systems for tbelr
cltles. Sucb systems enableu cltles
to grow anu bouse an lnuustrlal
revolutlon, wltbout ueclmatlng tbe revolutlon, wltbout ueclmatlng tbe
oulatlon tbrougb ulsease. Some
calleu lt tbe ^ge of Sanltatlon
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^er Worlu War , government suorteu
wbat we consluer touay to be a crltlcal lece
of ^merlcan lnfrastructure. tbe natlonal blgbway
system. Many ooseu tbe luea, so to get
conservatlve suort, tbe government clalmeu
lt was necessary for natlonal securlty.
^merlcan government bas always layeu an
lntegral role ln natlonal anu lnternatlonal
lnnovatlon. 1be nternet orlglnateu as lentagon
uefense tecbnology uurlng tbe Colu War, anu
major meulcal brealtbrougbs bave come as a
result of tbe worl of tbe Natlonal nstltutes
of Healtb. of Healtb.
n tbe ;os, a century aer tbe Clvll War, egual
rotectlon unuer tbe law was extenueu to
^frlcan-^merlcans. 1be result was a major
lncrease ln tbe buman caltal anu economlc
contrlbutlon of tbls mlnorlty grou.
Covernment-funueu lnfrastructure was
crltlcal to ^merlcan economlc growtb ln tbe
:otb century. Durlng tbe ;:os anu ;os,
government at all levels bullt a roau anu
brluge networl. 1be constructlon of major
uams, llle tbe Hoover Dam, uurlng tbe
Creat Deresslon sulleu neeueu water Creat Deresslon sulleu neeueu water
across tbe soutbwest, a system wltbout
wblcb economlc ueveloment woulu bave
been slow.
^er Worlu War , tbe feueral
government sulleu subslules for
^merlcan Cs to go to college anu buy
bomes. 1be Colu War, anu eseclally tbe
launcb of Sutnll, furtber romteu tbe
government to subslulze college for many
^merlcan stuuents. ^merlcan stuuents.
Cuaranteelng buman rlgbts also
romotes growtb. n tbe late 8oos anu
early ;oos, tbe feueral government
rotecteu cbllu anu female labor. n tbe
;os, a mlnlmum wage was createu. n tbe
;os, tbe Sureme Court regulreu egual
ubllc euucatlon for all, regaruless of color. ubllc euucatlon for all, regaruless of color.
Not long tbereaer, femlnlsm fostereu
awareness of blas agalnst women worlers,
anu cbanges ln tbe laws enableu more
women to worl anu tale famlly leave.
1bls leu to major economlc contrlbutlon.
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