How much collateral damage are libertarians willing to accept as the price for implementing their policies? In my experience, they avoid this topic by refusing to recognize the existence of collateral damage. Instead, they speak of the Promised Land on the horizon - - the utopian society that will simply occur once government packs up and leaves. At Think Progress, Ian Millhiser discusses the foundation principles of libertarianism set forth by Herbert Spencer. Here's an excerpt:

Herbert Spencer was a popular author during the nineteenth century who supported strict limits on the government and even opposed many forms of charity towards the poor. Nature, Spencer argued, “secures the growth” of the human race by “weeding out those of lowest development,” and he also believed that neither government nor private charity should interfere with this process of natural selection. Though Spencer was not a eugenicist — he actually argued that the poor should be treated much more harshly than nineteenth and twentieth century eugenicists did — he was both a social acquaintance of Sir Francis Galton, the father of the eugenics movement, and a significant influence on Galton’s thinking. Spencer also shaped many of the policies developed by some of the most powerful judges and lawmakers of his era. Reading Spencer’s many works today is an uncomfortable experience — the man devotes hundreds of pages to establishing a philosophical justification for a kind of neglect that most Americans would now view as a moral atrocity. Yet Spencer is also one of the foundational thinkers in the development of the economically libertarian philosophy that drives politicians such as Sen. Rand Paul (R-KY). . . . Not long after we published this piece, two of the libertarian movement’s flagship institutions leaped to Spencer’s defense. Over at Reason, Damon Root does not contest our description of Spencer as one of the foundational thinkers in the development of Rand Paul’s economic libertarianism. He does, however, contest our description of Spencer as a genocidal libertarian. Though we quote Spencer’s 1851 book Social Statics, which opposes “[a]cts of parliament to save silly people” and argues that if a man or woman is “not sufficiently complete to live, they die, and it is best they should die,” Root claims that Spencer “never advocated anything remotely like letting the poor die in the streets.”

Miller quotes Spencer on the roll of charity:

Instead of diminishing suffering, it eventually increases it. It favours the multiplication of those worst fitted for existence, and, by consequence, hinders the multiplication of those best fitted for existence—leaving, as it does, less room for them. It tends to fill the world with those to whom life will bring most pain, and tends to keep out of it those to whom life will bring most pleasure. It inflicts positive misery, and prevents positive happiness. . . . ”

Miller comments on Spencer's disparagement of public (governmental) and private charity:

Spencer called for a near-blanket prohibition on “relief of the poor from public funds raised by rates,” but he also objected to charity administered by “privately established and voluntary organizations.” When a donor gives to such an organization, Spencer reasoned, the “beneficiary is not brought in direct relation with the benefactor” and this increases the likelihood that the money will ultimately be spent on “idlers, spendthrifts, and drunkards” or someone else that Spencer viewed as “worthless.