That WaPo article also contains this:
...Beyond these concrete impacts, some strategists expect Katrina to reshape the ideological premises of Washington debate in more subtle, but potentially more consequential, ways. Former House speaker Newt Gingrich (R-Ga.), in memos circulated among Republicans last week and in conversations with White House officials, argued that the party that offers bold ideas to modernize how government responds to crisis will be rewarded in future elections...
...John D. Podesta, former chief of staff to President Bill Clinton and head of a leading Democratic think tank, says Democrats must start by casting Bush's brand of conservatism -- emphasizing an "ownership society" elevating individualism and private enterprise -- as fundamentally flawed and hostile to society's collective responsibility to help citizens, especially the neediest.
In its place, Podesta says, Democrats must offer an activist, reform-minded government agenda that includes new energy, infrastructure and homeland defense policies.
You're both wrong! The last thing we need is a bigger, badder Welfare State. On the other hand, the other last thing we need is more cronyism and corruption. How about trying to help people get out of poverty by encouraging self-reliance rather than reliance on the government? How about encouraging people to voluntarily work together rather than either forcing it upon them or telling them it's every man for himself?