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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 SAID, “GOVERNMENT IS OURSELVES.” Reagan said, “Government is the problem.” Differing perspectives on government have defined the public narrative and political actions throughout American history. Now it’s 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 MADRICK is a Senior Fellow at the Roosevelt Institute, economics columnist at Harper’s 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.

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What issues do you think the government should be responsible for addressing?

|Twitter | http://twitter.com/RediscoverGov

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Help REDISCOVERING 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-BUSTING 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-BUSTING 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-BUSTING 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 2012’s 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-BUSTING 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

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