- The Federal government, while displaying strong competence and leadership in the international arena appears unable to cope with the domestic problems that worry most Americans. For nearly two decades, the US economy has been performing below par; wage earners have found their take home pay buying less; young people wonder if they will do as well as their parents and whether they will be able to afford a house; banks are crumbling and must be bailed out with taxpayers' money; governments, companies, and families struggle with high levels of debt. In this book for everyone concerned about the future of the country, Alice Rivlin asserts that Americans must ask themselves why the government is so paralyzed on the domestic front and what they can do about it. Bringing together economic and political issues, she raises questions about what economic policy should be and which level of our federal system should be responsible for carrying it out. In a controversial new proposal, she contends that the productivity of the economy would increase if many responsibilities of the federal government were passed to the states. Rivlin explains that the federal government should be charged with carrying out tasks for which national uniformity is essential, such as social insurance. But there are many tasks, such as education and housing, for which states should have clear responsibility. In order for states to do this, however, they will need adequate revenues, so Rivlin proposes a system of common shared taxes. The book offers a new vision of a more productive US economy and a more effective government structure. Rivlin stresses that unless a substantial number of citizens begin to think and talk about what kind of economy they want and what their elected leaders should do, realizing the American dream may