Hypo - A prefix of Greek origin, cognate with sub- of Latin origin, and meaning primarily ‘under,’ either in place or in degree (less,' ‘less than’).

I cant help but feel a hypocracy is a great word for small government

Good point. That would actually follow a similar formation process as the most commonly used term for this, which is "minarchy".

If only there were a documentary called Hypocracy, with just a bunch of footage of hypocritical things done by politicians. Heck, it could have a weekly segment it happens so often.