You assume that all libertarians are anarcho-capitalists, Richard. They aren't. I am not.
I believe that its the governments job to provide very strong courts for people to ensure proper recourse should their rights be violated - against corporations, private people, social liberties, ect. I also believe the government shouldn't have a large part in social agendas - to promote specific lifestyles (socially liberal or maybe moderate, depending on how you look at it).
I do believe a government should exist. Just not a government that takes 30-40% of people's income, and is very irresponsible for it. Libertarianism is not perfect as Sqrl said, nor is capitalism. However, given what I've experienced as a government worker (and any friend I have that works for Uncle Sam), I can definitively say that government workers are not the answer to the problem.
Back from the dead, I'm afraid.







