First off, nice "unbiased" question there...ugh...

Secondly, I don't know any Dems that are "paranoid" at all. If anything, there are plenty on the Right that think (wrongly of course) that the govt. is out to take away their guns, their "free speech" (with the "Fairness Doctrine"), their sovereignty (with a "New World Order" or one world govt.), etc., etc....

"The War on Terror has to do with fighting terrorists in the Middle East."

You simply can't have a war on an action...that is just silliness.

"So yes, spending more on military CAN go hand in hand with smaller government."

More spending on anything in the govt. means a bigger govt., period.