Libertarianism or classical liberalism actually works. It is simple, your right to act freely ends when it infringes upon another's rights. We need just enough government to enforce our individual rights and keep tyrannical forces at bay.

Here is one of my favorite quotes from Thomas Jefferson that explains the graduation of individual liberty:

"The way to have good and safe government is not to trust it all to one, but to divide it among the many, distributing to every one exactly the function he is competent to. Let the National Government be entrusted with the defence of the nation and its foreign and federal relations; the State governments with the civil rights, laws, police and administration of what concerns the State generally; the counties with the local concerns of the counties, and each ward direct the interests within itself. It is by dividing and subdividing these republics from the great national one down through all its subordinations, until it ends in the administration of every man's farm by himself; by placing under every one what his own eye may superintend, that all will be done for the best." --Thomas Jefferson to Joseph C. Cabell, 1816. ME 14:421