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RE: Being classically liberal
Short answer: No.
It is not the nature of government to shrink. It draws the corrupt and corrupts those with virtuous intentions through incentives to abuse power for personal gain.
Good government can shrink.
So can good cancer tumors. And good government is just as mythical. Governments are just people who claim a territorial monopoly in violence and plunder the productive economy. That is its root nature. Such a thing cannot be reformed or turned to good.