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.
I fear that in the end the famous debate among materialists idealists and dualists amounts to a merely verbal dispute that is more a matter for the linguist than for the speculative philosopher.