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The government was much more limited (comparatively so) 20 years ago. While I don't think we'll ever get to a government as promoted by von Mises, Hayek, Rothbard or Samuelson it doesn't mean that I should not promote the concept of individual freedom and actively promote those factions within the 2 parties that would help push the country in that general direction.
There is another party (including almost all of its supporters) which has contempt for limited government.
As to making the government smaller - no it is rarely done. But what would you have done? Nothing?
Which of the two political parties in America want to roll back Imperial Washington?
Which of the two political parties wants an ever larger, ever more powerful government and which one has a large percentage of people who want to go to a government with limited powers as enumerated in the US Constitution?
And yet money is being invested. How do you account for that?
Black markets often exist because of government foolishness (banning alcohol) and sometimes because an action is prohibited due to use of force: ie sx slavery. Governments, from a free market perspective, exist to redress fraud and violence and not to enforce morality or use business transaction fees to set up a patron-client relationship with sections of the populace.