You seem to be getting caught up in the most extreme version of libertarianism.
Consider this: If more big problems were solved in various ways at the state level, there would be COMPETITION and government might be BIGGER in some areas and SMALLER in others.
My guess is that in many cases it would be smaller if there were more competition between regulatory ideas/approaches, but this is probably not going to be the case in every area.
Libertarians don't believe in small government at all cost, only that government should be put under competitive pressure so that it's as minimal and efficient as possible, and so that there are not perverse incentives and special interest entrenchment created.
Consider this: If more big problems were solved in various ways at the state level, there would be COMPETITION and government might be BIGGER in some areas and SMALLER in others.
My guess is that in many cases it would be smaller if there were more competition between regulatory ideas/approaches, but this is probably not going to be the case in every area.
Libertarians don't believe in small government at all cost, only that government should be put under competitive pressure so that it's as minimal and efficient as possible, and so that there are not perverse incentives and special interest entrenchment created.