Popular national goals remain elusive. Poverty is stubborn. Many schools seem inadequate. The “safety net,” private and public, is besieged. Our expansive notion of entitlement rested on optimistic and, ultimately, unrealistic assumptions:

First, that economists knew enough to moderate the business cycle, guaranteeing jobs for most people who wanted them. This seemed true for many years; from 1980 to 2007, the economy created 47 million non-farm jobs. The Great Recession revealed the limits of economic management. The faith in a crude stability vanished.

Second, that large corporations (think: General Motors, AT&T) were so dominant that they could provide secure jobs and generous benefits — health insurance, pensions — for much of the labor force. Deregulation, foreign competition and new technologies changed all this. Companies became more cost-conscious, cutting jobs and squeezing fringe benefits. The private “safety net” has shrunk.

Third, that improvements in economic efficiency (a.k.a. “productivity”) would lift living standards and finance bigger government without steeper taxes. Government could pay for new programs by taking a fixed share of rising incomes. In reality, greater income inequality has dampened middle-class living standards, while existing programs — soaring health costs and the effects of an aging population — have claimed an ever-larger share of taxes.