Liberals don't use the phrase "Small government" because liberals think there is a place for good governance. Plus, the phrase as I said before is purely a focus group driven piece of right wing political propaganda. It means nothing.
Liberals do want to decrease military spending because the current military budget and procurement process is a grotesque, out of control monster that is designed to entrench incumbents (there's no efficient reason why planes and boats need to be assembled in 45 different states and hundreds of districts), reward cronies, and exacerbate tensions across the world.

