Much of the confusion about libertarianism seems to stem from confusing the contemporary US Libertarian right with a tendency on the radical left that is sometimes described as libertarian socialism. On the right the ideological perspective centers around The Cato Institute. From their mission statement:
http://www.cato.org/about/about.html“The Cato Institute seeks to broaden the parameters of public policy debate to allow consideration of the traditional American principles of limited government, individual liberty, free markets and peace.“
A Wikipedia entry more accurately describes this outlook in strategic terms:
http://en.wikipedia.org/wiki/Libertarian“Libertarianism is a political philosophy that strongly advocates the maximization of individual rights, private property rights, and free market capitalism. Specifically, libertarianism holds that a person's freedom to dispose of his body and private property as he sees fit should be unlimited as long as that person does not initiate coercion on others. Libertarians define "coercion" as the use of physical force, the threat of such, or deception (fraud), that alters, or is intended to alter, the way individuals would use their body or property.”
In theory this approach appears analogous to a populous “rugged individualism”. In practice it resists all attempts at economic, environmental and civil rights regulation. Often a libertarian critique of public policy sounds remarkably progressive, but quickly deteriorates into a far right attack on entitlements and democratic regulatory principles. A great example is Fox News commentator Andrew Napolitano, a former NJ Superior Court judge. His recent book “Constitutional Chaos” includes a blistering attack on The Patriot Act. Listening to him launch the book on Cspan2 BookTV (held at the Cato Institute) you might have thought you were listening to a progressive civil libertarian. The punch line is that he ultimately equates the loss of individual liberties of the Patriot Act with the loss of wealth through progressive taxation.
On the left, the label is less useful. As DBoon posted above there was tendency on the working class left that operated in late 19th century Europe and early 20th century USA that resisted an extremely aggressive attack by Capital. Class warfare seems to have a clearer focus than today and working class struggles were often framed by a growing Marxist influence. While some on the left embraced a proto-Leninist model of seizing state power, others felt that ceding state power to anyone (regardless of class) was little improvement over capitalist domination. These were the Anarcho-Syndicalists and their allies. Later in the 20th Century the breakdown of the Stalinist model which substituted a central coordinator class for a capitalist one led some on the left to question the need for either free market or centrally planned principles of economic organization. This resulted in a variety of political solutions from some strains of the European Green movement proposing micro-economies that were totally self-sufficient to Participatory Economics a values based Economic theory developed by Michael Albert and Robin Hahnel. Throw in the Autonomist Marxism of Toni Negri and Michael Hardt and very different approaches uncomfortably fit under the same label. Again from Wikipedia:
http://en.wikipedia.org/wiki/Libertarian_socialism“Libertarian socialism is any one of a group of political philosophies dedicated to opposing coercive forms of authority and social hierarchy, in particular the institutions of capitalism and the state. Some of the best known libertarian socialist ideologies are anarchism (particularly anarcho-communism and anarcho-syndicalism), council communism, autonomist Marxism, and social ecology. However, the terms Anarcho-Communism and Libertarian Communism should not be considered synonyms for libertarian socialism. Anarcho-Communism is a particular branch of libertarian socialism.
Libertarian socialists believe in the abolition of both private control over the means of production and the state, considering both of these to be unnecessary and harmful institutions.”