Certainly, few self-conscious libertarians have much tolerance for racism, but they are encouraging a point of view about "welfare" that has long been catnip to racists. And that's a problem for liberals. How can an alliance last in a climate where a progressive think tanker has to look down the rostrum at that nice Cato Institute colleague and wonder if he or she privately thinks the poor are "looter scum";
People like Wilkinson, Lindsey, and myself have indeed spoken out against "welfare" of the auto bailout and the "looter scum" of the bailed-out financial industry. On the other hand, when people criticize my pro-immigration stance on the grounds that we will be adding to the welfare burden and thereby enlarging the state, my reply is that welfare is not the state enlargement that I fear. What I fear is the state's control of education, health care, the financial industry, and so on.
Ed Kilgore exemplifies what Thomas Sowell calls "using the poor as mascots." That is, when a libertarian opposes a statist agenda, Kilgore comes back and accuses us of being racists and hurting the poor.
I am disappointed but not at all surprised to see this attitude expressed. In fact, I am glad to see this rhetoric out in the open. If the rest of the Progressive movement wants to rally to this flag, it helps clarify the situation for libertarians.