The trick is to expect Government to behave as if it could be guided by the values and mindsets of a small business...

Rather, that is the trick that campaign managers and RW politicos use to get themselves elected.  It appeals directly to the personal experiences and prejudices of small businessmen and those who identify with them.  They see no contradiction arising from the totally different behavior of large corporations, which routinely flout all of the cautionary strictures of Adam Smith, as they see large corporations as simply being more successful versions of small businesses, and thus aspirational for them and worthy of defense, even when that puts small businesses out of business.

People such as Karl Rove certainly see this and don't give a damn about the contradictions.  Probably most of the adherents to that point of view are less clear on these issues.  They just "know" that it is important for "their guys" to win so that the country will be run according to "correct" values. For them it is a problem of preserving their identity regardless of the consequences, those consequences that are now besetting us all.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."