Posted by Randy Barnett:
Libertarians and Republicans:  

   There is an interesting exchange between Ryan Sager and Ramesh Ponnuru
   about the role of libertarians in the Republican coalition
   (Instapundit has the links [1]here). This is a complicated subject
   about which I would have a good deal to say if I had the time to
   compose a careful post. But I do want to make one point.
   In hindsight, I think that the creation of the Libertarian Party has
   been very detrimental to the political influence of libertarians. Some
   voters (not many lately) and, more importantly, those libertarians who
   are interested in engaging in political activism (which does not
   include me) have been drained from both political parties, rendering
   both parties less libertarian at the margin.
   Put another way, in proportional voting parliamentary systems, there
   are many political parties and governments are often formed by
   organizing a coalition in which they must cater to smaller parties,
   especially when holding a only slim paliamentary minority. In a
   winner-take-all first-past-the-post electoral system--like we have in
   elections for both Congress and the presidency--the major parties are
   each themselves coalitions of political interests. To win an election,
   they need to gather a coalition of voters to get over 50% of the vote,
   so the marginal voters become important to them. Of course, they
   cannot make efforts to reach marginal voters that completely alienate
   their "base" (which is one the problems facing Democrats at the
   moment).
   While some libertarian political activists are certainly Republicans
   and Democrats, the existence of the Libertarian Party ensures that
   there are fewer activists and fewer voters in each major party
   coalition than would otherwise exist. Therefore, each party's
   coalition becomes less libertarian. I do not mean to exaggerate the
   extent of this effect. But even a handful of political activists in
   local and state party organizations can make a big difference.
   Whatever one thinks of the initial creation of the Libertarian Party,
   its continued existence seems to be a mistake for libertarians.

References

   1. http://instapundit.com/archives/021326.php

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