Are Americans' perceptions more or less accurate than they were 50 years ago, when confidence in public institutions was a lot higher? Look at the factors 'vaadu listed:
> Corruption. money gets access
Back in the day, money used to buy votes and offices outright.
> Elected government folks' priority is getting reelected.
That's always been the case.
> Unelected government folks have far too much power
The power of the administrative state contracted dramatically during the Reagan/Clinton era. Measures like price controls are taboo today, but were seen as a standard tool of governance in the 1950's and 1960's.
> Lack of accountability for wrongdoing and incompetence
Government is way more transparent today than it used to be, both voluntarily and involuntarily. The FBI's investigations into MLK took about a decade to come to light. The NSA's activities are being leaked almost in real time. U.S. covert missions in other countries used to take decades to come to light. These days, we all but have a play-by-play of every drone strike.
Another example is that the morals of our leadership are subject to more scrutiny than ever. JFK was literally raping young women in office. George H.W. Bush had a mistress that everyone in knew about. But the media never talked about any of that--there was a code of silence about that. But that code of silence is dead today. Obama is probably one of the most morally virtuous men to hold the office--if he wasn't his failings would've been plastered 24/7 across the Internet.
I'd argue that peoples' increased cynicism is not a response to government getting worse, but peoples' expectations getting higher because they have more information about everything.