This country has a strong libertarian streak. Just look at Perot’s margins during the 90’s. Many western and southern republicans are pretty much libertarians in practice if not in name (Ron Paul for example).
“Just look at Perots margins during the 90s.”
I wouldn’t posit Perot as a libertarian icon. Usually libertarian and free-trade go hand-in-hand.
And this is why Republicans aren't competitive in California any more. When the national GOP made a conscious decision to kick out libertarian-minded Western economic conservatives in favor of big government Southern social conservatives, they allowed the Democrats (ludicrously) to paint themselves as the party that cares more about individual liberty. You will find millions of successful, high-income, productive Californians - a natural Republican constituency - who now equate the GOP with Big Brother and think Democrats are true the guardians of freedom.