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The Tea Party are not Libertarian - they're conservative. The only agreement they have with Libertarians is on tax policy and a handful of other economic issues.
When it comes to social issues, the bulk of Libertarians are to the LEFT of Democratic Party progressives and liberals - embracing the notion of complete and total personal freedom without government restriction. It's perfectly possible to be a liberal and support laws that restrict personal freedom under the auspices that it's for the good of the people. (I.E. Anti-gambling laws because those who gamble lose more money than they win, thus viewing the Casino as a predator upon the ignorant or foolish.)
Likewise, when it comes to foreign policy issues the Libertarians are likely to take an even more aggressive approach than most Democratic Party progressives and liberals. They're staunchly against intervening in other nations affairs - virtually against all types of war except in perhaps the most dire of circumstances. (Literally self-defense only.) A libertarian, due to their view on government, would likely slash Defense spending dramatically. Though the proper amount of defense spending is a point of debate among libertarians, ultimately though I believe if they ever got serious power their view on taxes and debt would force them to slash defense spending - likely bringing us in line with a nation like Canada.
When it comes to immigration libertarians favor - if not completely open borders - then borders that are extremely porous. Again, this would put them to the left of the Democratic Party.
Where the Democratic Party, liberals, and progressives part ways with Libertarians is the role of government. If a liberal or a progressive supports any of the above it's generally under the notion of fairness, equality, or some other emotional entanglement. A libertarian is more focused on philosophy than emotion. There is nothing inconsistent with a libertarian viewing pot as evil and sinful, and yet at the same time staunchly demanding the government to fully legalize it. Why? Because personal views do not color philosophical views. A libertarian does not believe the government should tell its citizens what they can and cannot put into their bodies.
It's that same view of government that leads the libertarian to be against taxes, welfare, and all the other economic issues. Libertarians are first and foremost about personal freedom. They strongly oppose the government entering their lives. A libertarian reasons, if they want to help the needy, they'll give to a charity - that way they know where their money is going and can hold that charity directly responsible. On the other hand, if they give to the government, how will they know it won't go to something they don't support? (Like funding a war.)
In Europe libertarians are more often identified with the left because of their stances on social issues. Here in the United States they're more often identified with the right because of their stances on economic issues. The truth of the matter is they do not easily fit on the left-right scale. They're neither conservative nor liberal - they're a different philosophy entirely. Even if there is agreement on issues - such as ending DADT - the reasoning that brings liberals and libertarians to stand together is vastly different. A liberal supports repeal of DADT for moral and emotional reasons (fairness, equality, etc.). A libertarian supports the repeal of DADT because the government has no damn business meddling in the personal lives of citizens - including soldiers.
In my mind, libertarians have more in common with the left than the right - thus I take the European view. They may agree with conservatives when it comes to tax policy, but the difference between a libertarian and a conservative - a libertarian would actually cut the size of government. Conservatives just hate taxes, it's an emotional response. Libertarians actually have philosophical reasons - Conservatives don't. If there was an actual strong libertarian movement in the United States, they'd quickly find themselves at odds with Conservatives.
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