Are my gears setup backwards?

Both shifters are numbered so that so that higher number gives larger gear ratio. In front it's the larger cog, in the rear smaller.

No, it's set up the right way. (In fact, because of the way the front and rear gear systems work, it's essentially impossible to set them up backwards: you'd have to re-engineer the whole system.)

Think about it in terms of how many times the wheels turn for each turn of the pedals. When you change to a larger-sized cog at the front, the chain moves farther for each turn of the pedals, so the rear wheel turns more times. When you change to a smaller-sized cog at the back, moving the chain the same distance causes the wheels to turn a greater number of times. So, in both cases, moving to a higher-numbered gear causes the wheels to rotate more times for each turn of the pedals.

The gear ratio is front teeth / rear teeth¹, which gets bigger with

• More front teeth, or
• Fewer rear teeth

So 32 front and 16 rear teeth is 2:1. For each pedal cycle the wheel makes two revolutions.

_{¹ Front teeth divided by rear teeth}