Earlier quoted context omitted.
So is the implication that the state has grown much more wasteful in its spending over the last few decades? If you've got a plan for providing the level of services from the 60s without raising taxes, I'd love to see the details. (Consider pension and healthcare costs now versus then, even accounting for inflation)
Pension and health care outlays are not exogenous givens. The economy is not some external entity which government passively receives prices. Likewise the recession is not some external thing that can be waited-out like a hurricane. Our actions, and particularly those of that blunt club called government, entirely affects what emerges from the market making up the economy.
Take over healthcare and beat back prices? Hey, I'm all for it, but I think that's gonna cost more in the short term.