Dude, before you start asking questions to libertarians you should do a bit more research than the mainstream news organisations that are currently molding your perceptions.
I don't watch TV, and haven't for years. It sounds like you think you know a lot more about me than you actually do. I just read a fascinating article about that very topic - The Illusion of Asymmetric Insight.
This is such a loaded question OP, are you proposing that some otherwise rational businessperson start a non-profit charity that would directly compete with a government-run program?? I don't see a line forming for that one. Hmmmmm....do I want to go through the trouble of trying to sustain a business based on the voluntary exchange between two parties that competes directly against an entity with a monopoly on violence that can coerce its revenues either from the barrel of a gun or a printing press?
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One thing you might want to work on is that fish-giver complex of yours - yes I know it feels good to give, but be ready for the consequences...resentment, entitlement, dependency. I think thats why God helps those who help themselves, and the road to hell is paved with good intentions.
libertarianism != anarchism
And people donate when they're inspired, not challenged by someone who doesn't believe them. The only proof of what works is history, </status quo fail>
You've both missed the point. This isn't about charity, per se. This is a strategy to reduce the size of government, in a manner that sidesteps the political process. It's a bottom-up approach, rather than top-down. This was conceived of as a means to move towards the Libertarian goal of minimal government.
Libertarians say, take the government away and the market will fill the need. I'm suggesting doing the opposite: fill the need privately, which over time will reduce the need for government. Assuming it's done better than the government does it.
If you try to take the government away first, you're in for a hell of a fight, since so many people depend on it.
This doesn't even have to be about charity. Any government-provided service is a potential target. Like FedEx and UPS compete with the USPS. Countering social programs with private charity was just an obvious example since, again, a lot of people (who also vote) depend on them.
Don't point at me and say, "you do it." I'm not a Libertarian. This isn't my cause. Not that charity isn't worthwhile, but at this point I'm more interested in focusing my energies on alleviating the fundamental problem underlying all of this: scarcity.