Small government has always been a euphemism for a government working on less distribution of wealth. Governments always intervene in the economy one way or another.
No but lots of republicans vote for them actually hoping for smaller less interventionary government, believe it or not. The voters that give them power do not view it as that euphemism.
It's a fairy tale, but they do believe/hope for it.
That's exactly right. The US Government is ruthlessly efficient - yeah, people don't want to hear that. Sure, there are Pentagon-related boondoggles, but that's different.
Try working in a government office - you will be lucky to get a water cooler - BYOW.
"Small government" means "fuck you, I got mine, now let's gut the IRS so I can do some white collar crime".