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Julian Zelizer: Why be afraid of government?

[Julian E. Zelizer is a professor of history and public affairs at Princeton University's Woodrow Wilson School. His new book, "Arsenal of Democracy: The Politics of National Security -- From World War II to the War on Terrorism," will be published this fall by Basic Books.
Zelizer writes widely about current events.]

Health care reform has gotten off track. The president's news conference fell flat. Polls show growing unease with the proposals currently in play. And Congress will not meet the deadline that President Obama imposed.

The status quo, as the president correctly explained to reporters, is not sustainable. Our health care system is not working. Millions of people lack insurance, costs are out of control, businesses and workers are struggling to keep up with premiums, and there are tremendous inefficiencies plaguing many parts of the system.

Conditions will only become worse in coming years. Our health care system brings to mind the economist Herbert Stein's famous maxim: "When something can't go on forever, it will stop."

When Congress returns in September, Obama will only be able to revitalize the prospects for health care reform if he offers Americans a stronger argument about what government can do to improve this situation.

After years of being in the opposition, Democrats are still scared about defending the value of government. Their political nerves have been exacerbated by polls showing the public is growing increasingly concerned about the size of government spending. This reticence about government, in the aftermath of the Democrats' dramatic 2008 election victory, has been one of the most striking aspects of the administration's rhetoric in the past few months.

Before the 1970s, Democrats were full of confidence when pushing for federal programs. Indeed, 44 years ago this week, on July 30, 1965, President Lyndon Johnson signed the legislation that created Medicare and Medicaid. The event took place at Harry Truman's presidential library in Independence, Missouri.

Sitting beside the 81-year-old former president, Johnson announced: "No longer will older Americans be denied the healing miracle of modern medicine. No longer will illness crush and destroy the savings that they have so carefully put away over a lifetime so that they might enjoy dignity in their later years."

The program succeeded. Government worked. Before Medicare started, only about 50 percent of Americans who were 65 or older possessed hospital coverage. Within five years of the program's creation, 97 percent of the elderly had hospital coverage. The same changes occurred with physician's coverage. Today, more than 40 million elderly Americans rely on the program -- as do their families who don't have to take responsibility for these costs.

Besides expanding coverage, Medicare has become instrumental to the health care industry. For all the complaints that we hear about Medicare, the reality is that most hospitals and doctors have come to depend on these federal payments into their system. Those who want to keep government "out" of the industry rarely acknowledge that government is already "in."...
Read entire article at CNN