1. I'd like to see any sources where he says that any of the government programs now at the federal level would be legitimate at the local or state level. Has he argued that "such and such" an issue should be handled at the state/local level? Of course, but thats just making the case for federalism. I'd like to see an example of him saying that he thinks "X government department" is great and beneficial, minus roads/police/courts.
2. As for his desire to increase defense spending, I'd also like to see a source. I've seen him argue for shrinking the size of our military across the board.
"There’s nobody in this world that could possibly attack us today,” he said in the interview. “I mean, we could defend this country with a few good submarines."
http://64.233.169.104/search?q=cach...ould+defend+ron+paul&hl=en&ct=clnk&cd=4&gl=us
And here's an article from him critiquing standing armies.
http://www.antiwar.com/paul/?articleid=8893