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I do challenge anyone who wants smaller government to say exactly what should be cut and what should replace it.

The Republicans are terrible at this, they don't name anything (for electoral reasons as you say, but also because they wouldn't cut government while in power because that would reduce their power). Spending doesn't reduce under either US party.

Government works much better than inefficient competition (like bidding on train franchises, military contracts, regional monopolies on water) but worse than efficient competition. Smaller government necessarily means handing over functions to the markets and if the replacement system involves bidding for contracts or outsourcing to a single provider it's not going to work very well.