> Yes and no. I think the gov't has been highly influential in ensuring the gains from it go to capital and that its negative effects on labor are not reined in. Globalization would have happened anyway but the govt's approach to it has resulted in more inequality and dislocation than was necessary.

This is most certainly true. And I think dmix hit on a very important point when he mentioned that its hard for politicians to sell a future thats not all rosy and prosperous for everyone.

Off the bat, one of the things the US Govt. could most certainly have done is provide Universal Healthcare and some kind of funding for expanding basic education. I think about all that money earned by US corporations lying abroad...if you think about it, if we had a better taxation system, the strength of US corporations, their ability to generate such profits from around the globe could have been deployed to make all (or most) Americans have better healthcare and education.