At the Economist’s Democracy in America blog, Erica Grieder suspects that "the biggest untapped constituency is people who are fiscally conservative and socially moderate or liberal." Grieder links to a post by former Cato research fellow Will Wilkinson where he explains why he is not a libertarian:
Here are some not-standardly-libertarian things I believe: Non-coercion fails to capture all, maybe even most, of what it means to be free. Taxation is often necessary and legitimate. The modern nation-state has been, on the whole, good for humanity. (See Steven Pinker’s new book.) Democracy is about as good as it gets. The institutions of modern capitalism are contingent arrangements that cannot be justified by an appeal to the value of liberty construed as non-interference. The specification of the legal rights that structure real-world markets have profound distributive consequences, and those are far from irrelevant to the justification of those rights. I could go on.
Wilkinson now identifies as a liberal. He writes: "I am interested in what it means to be free, and the role of freedom in flourishing or meaningful or valuable lives."
In the US, no major political party or movement stands for this kind of liberalism. The same is true in Australia. According to Greg Barns: "The Liberal Party, in the Howard and Abbott incarnation, is a socially conservative force which also believes that the state should play a paternalist role in steering the economic direction of the nation." Oddly, the most enthusiastic supporter of "the the role of freedom in flourishing or meaningful or valuable lives" seems to be the Australian Treasury.