Smaller is Better?

I've been working on the Series 2 post, and it's a little overwhelming. Given my insane to-do list for my business and the fact that I'm moving soon, doing a series of posts going through the entire Constitution and its amendments may be a little more than I can do right now.
SO. I do, however, want to continue discussion about the role of government in our lives. LP's comments on the last post made me think a little more about what CAN be changed. Because she's right, there are lots of people out there who think it's our job as humans to help take care of each other. I don't think there's anything wrong with that, and I'm relieved that at least there's someone else out there who doesn't feel comfortable sitting back and letting someone else "shoulder our burdens".
You *could* make the argument that any kind of socialism *is* letting others' shoulder their burdens whether you want them to or not. You are allowing the government to decide how, where and when to help people.
Wouldn't it make more sense for those sorts of 'helping' organizations to be at the VERY biggest, a state issue? I think they should be entirely private (there is evidence [Charles Murray, "The Tendrils of Community"] that private orgs are both more efficient and garner better funding). But if you really think that all citizens should contribute willingly or no, (therefore by taxation) then I think a local or state organization is FAR better than a federal one. How can it not be?
Firstly, it's right there, in the location that needs the help. Secondly, since it's covering a smaller area, it's bound to be a smaller group of employees/volunteers, which significantly lowers the risk of both corruption and inefficiency.
I mean, honestly...in theory this is a change that could be effected tomorrow. Every Federal Org could be split into smaller orgs for each state. Their focuses would be clearer and surely they would accomplish more, therefore helping best those who need it most.
OK, that's enough food for thought today. Please comment and share your thoughts with me, I would really like to hear what you think.