"Government vs. Happiness"

"Government vs. Happiness" is the title of this post over at the Volokh Conspiracy.  According to this study, by three Swiss economists, "government involvement is detrimental to individuals' quality of life."

I'm not competent to evaluate the study's methodology, so I do not know if it is true that "life satisfaction decreases with higher government spending. This negative impact of the government is stronger in countries with a leftwing median voter. It is alleviated by government effectiveness - but only in countries where the state sector is already small."

If this conclusion is true, though -- or even if it were true -- then what should we think?