First leap of logic, attributing these issues to the civil rights act and not to years of systemic injustice in the US (and backlash to the civil rights act). This is like looking at the US before and after the civil war and pointing to inequality afterwards saying: "look how bad the inequality was after the civil war" due to slaves becoming sharecroppers. Do you actually think African Americans are worse off post-1964?
> Localized governance would not have had the same negative impacts.
Second leap of logic. Localized governance would have had slavery and Jim Crow laws still enacted. The reason why the Civil Rights Act was implemented at the Federal level was because it WOULD NOT have ever been implemented at the state or local level.
There is no "libertarian" solution when it comes to dealing with racism or similar conflicts. Consider any genocide, be it the Bosnian genocide or the Holocaust, etc. How do you combat that through a libertarian framework?
"Well, it would be government overreach to limit their ability to enforce segregation. Let the states decide."
"Well, it would be government overreach to limit their ability to do mass murder. Let the states decide."
Finally, consider why the concept of libertarianism exists in the first place. It exists to maximize personal liberty. If one person is meaningfully limiting the liberty of another, be it through violence, or economic means, ostracization, or intimidation, then wouldn't that be the BEST time for government to intervene to maximize the overall liberty of the system? I think we can all agree that the freedom to not be oppressed is more valuable than the freedom to oppress others.