The author seems to blame the two-party system and the class divide between politicians and voters for the fact that nobody is shrinking the size of the government.

I have a much simpler explanation for this phenomenon: no substantial body of voters want smaller government.

The clique of libertarians who actually believe in "smaller government" and not simply "government taking less of my money in taxes and spending less on the things that I personally don't like" is substantial on the Web and among the intelligentsia, but not so much in the voting booth. Look at how poorly Ron Paul did in the Republican primaries.