Brink Lindsey has a great post that echoes thoughts I have long had about libertarianism: "Illiberal Libertarians". I've always been uncomfortable with the cozy relationship libertarianism seemed to have with conservatism. I am not a conservative. As Brink writes "I’m a libertarian because I’m a liberal."
I like the label "market liberal": it denotes that I am a liberal who views the problems of social and political life as best left to free individuals to resolve. Free markets and limited government are important political goals because they are the means by which individuals can best live free and flourish.
Conservatism, by contrast, seems more to be about limited government as means towards more social control. In order for the family, local community, and/or religious institutions to exert their power over the individual, the government needed to be limited.
One sees this in Paul's views: his misunderstanding of federalism to allow states to violate individual rights; his views on abortion, homosexuality, religious freedom; his vies on immigration and trade. On all these (see my post analyzing these positions), Paul uses, paradoxically, the rhetoric of liberty as a means to less freedom in our lives.
(And this is why Paul is not a libertarian. Check out Timothy Sandefur's tally of libertarian repudiation of Paul.)
I am less hopeful than Brink that those on the left--modern or statist liberals--are coming around to market liberalism. I do agree, nonetheless, with him that "making the case that economic liberalization is of a piece with overall social liberalization" is the best way forward in terms of helping the cause of liberty. This is because social and economic liberalization have their foundation in the same source: the individual's moral right to life and liberty.