Why Libertarianism Doesn't Work

In high school and early college, I was a libertarian. You know, the government needs to stay out of our business and let the market work, etc. I think this is a common thing for rebellious political men...like I am sure Aaron Walker is a libertarian if you really pressed him.
Anyway, after a while I began to lose faith in human beings, at least politically, and now I am some kind of Green/Democrat/Independent. And I finally realized why. Because generally I do have faith in human kind, so it seemed inconsistent to have faith in them most of the time, except when it came to boycotting evil companies and what-not.
So here is my theory on why libertarianism can't work: In democracy, candidates are basically competing over who can solve the most problems. So in order to beat one another, candidates begin, over time, to step outside of the traditional government role, and start offering to step into areas like education (Department of Education), food safety (USDA), natural disasters (FEMA), workers rights, and health care (which we are seeing now). Basically, if there is any tragedy going on, governmental or not, candidates in the fierceness of competition decide to propose the government step in. So over time, the government becomes larger.
Once politicians began solving these problems, people became dependent. For example, instead of boycotting Wal-Mart, people just demanded that the government raise minimum wage. In the Earthquake in San Francisco in the early 1900s, the relief effort was completely led by private organizations. Yet in the aftermath of Hurricane Katrina, the government was expected to help everyone out. And its not because people didn't want to help--it is just implied to people that nowadays the government is in charge of making sure people aren't starving, etc. Which is caused by the competition of democracy.
The only way to create a libertarian society would be to start over again with the premise that everyone thought about what they were supporting with there actions. This would be tough, and I am not sure if it would even be desired. What a hassle it would be to research everything you bought.
So, in sum, democracy naturally leads to more and more government control, or socialism. Wow...I am a Marxist.

(This doesn't mean that civil liberties have to go away though. That is separate from free-market business liberalism)