Smaller government is stronger government.
A cliche and not a very good one.
This one has been drum beat for so long people aren't thinking about it anymore and therefore just thinking "yes big government means more of my individual taxes."
But what if those invested tax dollars lead to net gains for society? What if those dollars we, individually, invest in our government lead to not only net increases in the quality of our economy as well as other, less tangible, benefits- like a better environment, more stable world system, better education, etc.
Who would pay for all of that without tax dollars?
This is one of those great culture issues that defines americans- the desire for individual self-interest (low taxes) at the cost of collective social gains leading to sub-optimal results.
One of the more important arguments today in economics is the role of government in facilitating the existance of markets, exchange, and public goods. Without the state such public goods or markets would not be forthcoming- think of road construction, public safety, a quite a bit of the research and development that allowed the US to maintain itself at the cutting edge of the product cycle comes from the state itself. This all requires an overcoming of the collective action problem which economists leave to the state.
For the core argument about the importances of bureaucracies, states, etc- read Max Weber, but also try Peter Evans.
In the age of globalization, those countries that have benefitted have, in fact, expanded their government spending on bureaucracy to harness the opportunities of a more global economy. The results have been pretty consistent- but for more I think you want to read Dani Rodrik.
If you read Sam Huntington earlier work Public Order in Changing Societies, one sees the argument most clearly about the importance of capable institutions in running of a successful state and in the mediation of civil conflicts. For a short history of the world on this issue you might also want to read Robert Bates- Prosperity and Violence.
True, there is a danger that the bureaucracy might be an excessive tax on the state. This rent-seeking argument was developed by Mancur Olson in his Rise and Decline of Nations.
But the problem is not so much one of size but quality- how effective are the institutions at providing public goods, what kinds of safeguards are instituted have been created to prevent the preying of the state on the society (See the new institutionalism school for more of this).
In real terms, go to a hiring person at the next college job fair and ask what the hiring trends will be. You will find that in most government services there has been a huge lack of jobs. They have not been hiring significant numbers for almost 20 years. So you have little trained middle management to take over the positions when the trained civil servants retire, and they are starting to retire now as the baby boom exits. So its a good time now for young college grads to look for jobs in the government. The bad thing is that there is a lack of experience at the top and thus little transference of expertise from senior management to more junior management.
That's a problem.
Look, one can think of this simply as such- the expansion of the franchise of governance (democracy) came for three basic reasons-
(1) the need of the state to conscript soldiers led to a exchange of benefits- the state got soldiers to fight its wars, the soldiers got rights as citizens, including the right to choose their leaders. Note that the civil rights movement in the US comes during the 1960s- during the Vietnam War, but had it seeds in the 1950s- Korean war. Gulf War- led to women being allowed to be combatants.
(2) the demands of workers for greater power- rise of industrialization led to the rise of organized labor, and thus the spread of a social legislation- one sees more of this in Europe than the US- which is why they get off for longer holidays, have better unemployment benefits, etc.
(3) income taxes- If you are going to be forced to pay taxes you get more right to vote.
The problem in the US isn't big government, but unaccountable government- a consequence of not enough people saying they have a right to demand that their government do something good than just the basic rights and duties. What do people want- lower taxes. What has that done- bankrupted the states.
But states are still expected to give services, or people bitch and moan about the loss of services. Because politicians want to get elected, they don't want to see a decline in services. So the state has to borrow, which becomes debt that has to be repaid of the state looses its credit rating and no one wants to invest in the state anymore, or in the society which the state governs. Low credit means the economy takes a beating. It also means future generations have to pay the cost of current tax cuts. Future generations means you.
Just look at what Ozrat has posted n $87 billion. Don't you think that the country would be better off if that money was put into things like R&D, education, job creation, tax incentives for cutting edge industries so they hire more people?
"Smaller government is stronger government"? Please. Yet another example of words of wisdom found at the bottom of the Cracker Jack box.