First of all, Ron Paul isn't a Libertarian, he's a Constitutional Republican. That's why he's won 11 terms as a Republican in the House.
Secondly, what Ron Paul wants to do is limit the federal government to what it was SUPPOSED to do based on the constitution. There is a very short list of tasks the Federal Government is *authorized* to perform, and 85% of what they are doing now is unconstitutional.
Our currently federal government has basically BROKEN one of the mechanisms that allowed American Exceptionalism, which is the competition between states that allows the best ideas to rise to the top. The answer is to eliminate all of the unconstitutional Federal agencies like the Department of Education, TSA, DEA, BATFE, etc.