The public actions needed to revitalize the American economy cannot be carried out by states and localities alone. In the scenario for "dividing the job," crucial roles are also assigned to Washington. The federal government must work with other countries to enhance mutual security, settle disputes peacefully, ensure the flow of trade and investment around the world, and preserve the global environment. It must undertake activities that the states are unlikely to support adequately on their own, such as funding scientific research and encouraging technological development. One of the most crucial roles for the federal government already dominates the federal budget: strengthening the nation's social insurance system.
In particular, the federal government is far better suited than the states for resolving the health cost crisis. It should take the lead in controlling the growth of health costs while ensuring