America's Social Contract Throughout history, the American system of government has been regarded as one of the best in the world. In America everyone lives like a king. The government is fair and does not get involved where it should not be. Finally, the government regulates itself so it does not become too big and overpowering. However, this world view of America is not true today. In fact, the current federal system of government in the United States is failing to meet its social contract obligations to the American people. The first way that the government fails to meet its social contract obligations is in the si