Organizing a society strictly according to any ideology is a bad idea.

"Libertarianism and extreme capitalism" are great for people who are intelligent and driven. There's nothing wrong with the idea of trying to identify people like that and giving them money and leaving them alone. Actually there's something progressive about it: instead of forcing people to climb a corporate/academic hierarchy before they can make decisions, you're letting them do what they like in their intellectual prime.

That doesn't mean we should apply this way of thinking to everyone. Most people are of average intelligence and drive. Some people need assistance.