The sole role of the federal government should be national defense. Nothing else. Period. Paragraph.
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Well, that certainly is the MAIN reason we have a federal government. But there are a few other powers enumerated in the Constitution: a common currency, the post office (ironically enough), regulate interstate commerce--which has been badly abused but which can serve a legitimate purpose (e.g., I don't mind that the FDA makes sure preescription drugs sold nationally are safe).
But the point here of course is that there should be no "Government Motors." Romney is right on this.