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" "The causes of this breathtaking increase in inequality during the past three to four decades are much debated — globalization, technological change and the consequent increase in “returns to education,” de-unionization, superstar compensation, changing social norms, and post-Reagan public policy — though the basic shift toward inequality occurred under both Republican and Democratic administrations.
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Big, centralized government, with the proliferation of federal bureaucracies and the expansion of public welfare programs, is sometimes said to have undercut the mediating institutions of civil society, “crowded out” private generosity, and sapped individual initiative. This is a common explanation among conservative commentators, who attribute the reversal from we to I in the 1960s to the welfare state.16 Empirical evidence for “crowding out” is modest, for across states in the US and across countries in the world, the correlation between big government and social solidarity appears to be, if anything, faintly positive, not negative.