It seems to me that **corruption** is the problem, not the size of the government.
You can have corruption under a dictatorship(as small as government can be, no?), too.
The problem isn’t size, but accountability. As it stands, politicians are being controlled by corporate/financial interests; they are not accountable to citizens and society, in general. THAT is what needs to change.
Personally, I think it’s important to limit the revolving door between private and public office, and to get very tough on corruption. Though I see both sides, severely limiting lobbying would be a good start, especially when that lobbying includes some kind of exchange of money, power, etc. It would help a lot of we banned politicians from going into lobbying, and vice-versa. That is where a lot of our problems lie, IMHO.