Obama is trying to paint us as a caricature as if we're some bizarre individualists who are hardcore libertarians. It's a false dichotomy and intellectually lazy. Of course we believe in government. We think government should do what it does really well but that it has limits.
They who do not understand that a man may be brought to hope that which of all things is the most grievous to him have not observed with sufficient closeness the perversity of the human mind.