As to why people want lower federal government spending, I think I can provide some examples.
In America, the argument goes something like this: “We must give more money to education so our children have a good future.”
Well there is no correlation between spending and quality and in some school districts 72 percent of money is for nonclass expenses to administer programs for minorities (Blacks), American Indians, bilingual education, etc. etc. etc. DC is one of the worst offenders so it is not surprising that its schools are some of the worst in America. DC schools spend US$7,500 to US$9,000 per pupil (let’s not even talk about private grants that are outside this as well as special education) compared with US$1,500 to US$3,000 at private (but often Catholic) schools with much better results academically.
Second, unemployment insurance and transportation (gas) taxes go to the federal government where anywhere from 36 cents to 52 cents on the dollar can be lost to administrative expenses before being sent back to the States to deal with these particular problems.
The flat tax is popular with conservatives (new sense of the word) because companies face such byzantine rules regarding tax write offs, depreciation etc. which is all to the benefit of tax lawyers (who vote Democrat) and accountants. This is fine for the large corporations that can afford it but very difficult for small and new businesses to negotiate.
Why not get rid of corporate welfare too? The business lunch write off, the depreciation of assets, export credits, etc. which disproportionately go to large corporations who can afford international marketing and promotion efforts.
Then there is Job Corps. which by some estimates costs US$16,000 to place one worker (we are talking about very basic entry level clerical and factory positions here) and there are no figures given for how long the person stays in that position. Temporary agencies offer the training for free and have a much better placement rate so… why have Job Corps?
Then there is Amtrak which continues to lose money. Why not get rid of it and let private companies run trains along routes that are profitable. It costs the government more to let one person ride Amtrak crosscountry than it would to fly them to their destination first class (air).
Then there is housing and urban development HUD which by some estimates costs US$100,000 to build one unit of public housing and as anyone can see looking at the state of public housing in the US, we are talking about slums here. Much better to expand Section 8 and give the rent subsidies to private landlord who can kick bad tenants out if need be. Try to remove someone (drug dealers etc) from public housing. Also at those rates, why not just give the house to the people in charge or buy them one?
So on and on, there is such a low level of efficiency in many government services that conservatives want to get the government out completely and I have to say I completely support those efforts.
In Argentina, which has fallen out of favor with reformists because of the financial collapse, nothing worked prior to 1990 reforms. There was no housing, electricity was in short supply particularly in the summer, water shortages while broken main pipes flooded the streets, the subways were not running, there were no new roads, no pay phones, had to wait in line hours and hours to pay bills, no ATMS, no computers, no faxes and certainly no email. Then everything was privatized and wham within three years there was more than enough of everything and plenty of new jobs in the private sector and services that worked. The problem with Argentina was the corruption and bloated state sector that survived. This is what bankrupted the country.
Everywhere the state sector dominates you have problems. Take a look at (formerly) communist countries and of course Africa and India prior to reforms (1993). Reforms cannot be made people say because we do not want to lose jobs but once they are initiated high growth rates ensure that standards of living rise much higher and such reforms can only be postponed not stopped anyway. Look at India today.