"Among the many areas of government where critical services are seriously deficient, or costs and inefficiencies are unacceptably high, according to the GAO, are many that directly affect the lives and well-being of the American people. Agencies on the watch list include the Internal Revenue Service, the Department of Education, the Department of Housing and Urban Development, the U.S. Postal Service and the Federal Aviation Administration."
(Sometimes it's necessary to spend money to make improvements.)
"Several operations of the Defense Department are in the same category -- a signal to Congress and the White House that attention must be paid."
I interpret his comments as being on mark: if limited government means too many limitations, then necessary government functions become difficult to maintain at an efficient level of operation.
Finally, if we don't think education is important to the future of the U.S., why was there so much buzz about "No Child Left Behind"?
As far as defense goes, Broder does not cite defense, but immediately goes into Homeland Security, which is its own entity.