“I believe the government that governs best is the government that governs least. And by these standards, we have set up a fabulous government in Iraq.”

Motto of United States Magazine and Democratic Review. First used in introductory essay by editor John L. O'Sullivan in the premier issue (October, 1837, p. 6 http://books.google.com/books?id=HGtJAAAAMAAJ&pg=PA6&dq=%22governs+least%22). Attributed to Jefferson by Henry David Thoreau, this statement is cited in his essay on civil disobedience, but the quote has not been found in Jefferson's own writings. It is also commonly attributed to Thomas Paine, perhaps because of its similarity in theme to many of his well-documented expressions such as "Society in every state is a blessing, but government even in its best state is but a necessary evil; in its worst state an intolerable one."
Misattributed
Variant: "That government is best which governs least"; reported in Paul F. Boller, Jr., and John George, They Never Said It: A Book of Fake Quotes, Misquotes, & Misleading Attributions (1989), p. 56

Source: The Long-Legged House

Neither Democrats, Nor Dictators: Anarchists (1926)
Context: The "government of all the people", if we have to have government, can at best be only the government of the majority. And the democrats, whether socialists or not, are willing to agree. They add, it is true, that one must respect minority rights; but since it is the majority that decides what these rights are, as a result minorities only have the right to do what the majority wants and allows. The only limit to the will of the majority would be the resistance which the minorities know and can put up. This means that there would always be a social struggle, in which a part of the members, albeit the majority, has the right to impose its own will on the others, yoking the efforts of all to their own ends.
And here I would make an aside to show how, based on reasoning backed by the evidence of past and present events, it is not even true that where there is government, namely authority, that authority resides in the majority and how in reality every "democracy" has been, is and must be nothing short of an "oligarchy" – a government of the few, a dictatorship. But, for the purposes of this article, I prefer to err on the side of the democrats and assume that there can really be a true and sincere majority government.
Government means the right to make the law and to impose it on everyone by force: without a police force there is no government.

From Discussion with BG Kher and others, 15 August 1940. Gandhi's Wisdom Box (1942), edited by Dewan Ram Parkash, p. 67 also in Collected works of Mahatma Gandhi Vol. 79 (PDF) http://www.gandhiserve.org/cwmg/VOL079.PDF, p. 122
1940s

No. V, The House of Commons, p. 159
Cf the Gettysburg Address.
The English Constitution (1867)

319 U.S. 641
Judicial opinions, West Virginia State Board of Education v. Barnette (1943)
Context: We set up government by consent of the governed, and the Bill of Rights denies those in power any legal opportunity to coerce that consent. Authority here is to be controlled by public opinion, not public opinion by authority.

Late Show with David Letterman, June 16, 2005
2000s

Remarks to American Field Service Students http://www.eisenhower.archives.gov/education/bsa/citizenship_merit_badge/speeches/address_convention_hall.pdf (15 July 1958)
1950s

Speech http://books.google.com/books?id=kfYEAAAAYAAJ&q=%22The+government+is+us+we+are+the+government+you+and+I%22&pg=PA521#v=onepage at Asheville, North Carolina (9 September 1902)
1900s