It’s probably true that some of the overlap between libertarians and alt-righters can be explained by their companionship as members of the political fringe. But it’s not purely accidental, either. Historically, prominent libertarian thinkers have made the decision to cultivate ties with the nationalist far right, and have viewed racial demagoguery both as an efficacious political tool and an intellectually defensible position. The libertarian-to-fascist pipeline may have been forged partially by coincidence, but it was also crafted and maintained.
In the early 1980s, economist Murray Rothbard left the libertarian Cato Institute, which he had helped found. Rothbard’s impatience with respectability politics and the moderate tone enforced by the Kochs on their organization (including Reason magazine) led to his departure. He made common cause with another dissident libertarian named Lew Rockwell, founder of the Mises Institute, a home for a more hardcore brand of thought than was permitted at Cato.
A self-confessed admirer of Joseph McCarthy’s political tactics, Rothbard wanted to put some emotional meat on the spare, abstract bones of libertarian economics. Rockwell, who shared Rothbard’s strategy, penned a series of virulently racist, homophobic and anti-Semitic newsletters on behalf of Ron Paul, in hopes of crafting a viscerally appealing emotional aura around libertarianism. “We are constantly told that it is evil to be afraid of black men, it is hardly irrational,” one missive went. “I think we can safely assume that 95 percent of the black males in [Washington] are semi-criminal or entirely criminal,” said another. With these themes, Rothbard and Rockwell brought sensation and visceral feeling to a libertarianism that had otherwise been a matrix of lofty abstractions.
The fullest articulation of Rothbard’s strategy — and a piece of political cynicism for the ages — appeared in his 1992 essay “Right Wing Populism,” an apologia for former Ku Klux Klan grandee David Duke’s failed presidential run. Rothbard found much to like in Duke’s positions: “lower taxes, dismantling the bureaucracy, slashing the welfare system, attacking affirmative action and racial set-asides, calling for equal rights for all Americans, including whites: What’s wrong with any of that?”
Rothbard went on to argue that the mainstream libertarian project of trying to convince “intellectual elites” by spreading “correct ideas” through institutions such as Cato and Reason had failed. Libertarian intellectuals were, after all, part of a corrupt and feckless ruling class, so they had an invested self-interest in perpetuating their situation. The elites had to be overthrown.