According to this article from ABCNews, Senator BaracK Obama is a strong believer in the economic theory of ‘Libertarian Paternalist‘, a theory developed by two University of Chicago professors now serving as informal advisers for Senator Obama.
The idea of the iPod Goverment refers to libertarian paternalist theory on preserving freedom of choice while steering citizens in directions that will improve their lives. Why they have referred to it as an iPod Government is because like the iPod, the theory is based on user friendlyness, with sensible default rules that you can adapt if you wish, but even if you don’t you will be fine.
You can read more about it here…

