cipherpunk discusses the differences between the two, and how the government has turned a short and strictly enumerated list of only seventeen things it is allowed by the Constitution to do, all other things being forbidden to it, into "We can do whatever we want".
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Barry Goldwater, it's said, was fond of repeating that remark of Ford's, in the 1964 campaign during which, yes, he invented the Southern Strategy. At that time, the South was very much resentful of Johnson's laws which ended institutionalized racism. Open racism was no longer nationally acceptable, so they talked about small government and states rights. So the story of the slaveholders continued at that time, and continues to this day.
I would prefer much less large-scale power in our lives. Yet I don't see how we can hope to retain any personal freedoms without a powerful democratic government. Without that government, "we the people" stand no chance at all against the big corporations and the various foreign tyrannies. At least with the US Federal government I get a vote and the benefit of democratic traditions, even if those traditions could be stronger and my vote only makes much difference in one house of Congress.