Here’s what governments should do: shrink dramatically and get of the way of people who know what they’re doing. From Doug Casey at internationalman.com:

It’s hard to have a conversation today, or even overhear one, without being exposed to moronic – and I now use that word in its colloquial as well as its clinical sense – opinions about what “we” should do.
“We,” of course, is the government. Everyone believes it should “Do Something.” And it is.
But why deal in half-measures?
Why only send everybody a check for $1,200? Why not buy everyone a new Cadillac to get Detroit back to work, a big new house to help builders, and a $10,000 check that must be deposited at a failing bank and then spent at Victoria’s Secret.
A plan like that certainly sounds like more fun than what I’m going to propose. Especially since Americans are going to be a bit short on fun over the next little while.
They used it all up over the last generation.