The Compassionate Libertarian tradition holds that free markets are the most powerful instrument for lifting human beings out of misery ever found — and that this, not any abstract principle of non-interference, is the reason to defend them. Where the harder libertarian traditions begin from a rule (do not coerce; do not redistribute) and accept the outcomes whatever they are, you begin from the outcomes themselves. Liberty and free exchange earn your loyalty because of what they do for ordinary and vulnerable people — and you would, in principle, withdraw that loyalty if they stopped delivering. It is precisely because your case is consequential and humane rather than dogmatic that you trust it. This is the bleeding-heart strand of the freedom tradition, and it descends not from the Austrian school's axioms but from the warmer soil of the Scottish Enlightenment.
The foundation is David Hume, who grounded morality not in cold reason but in sentiment. In A Treatise of Human Nature, Hume argued that our sense of right and wrong arises from sympathy — from the human capacity to feel with others — and not from abstract principle. That move is quietly decisive for your worldview: it lets you think about markets and freedom in terms of human flourishing rather than logical necessity, to ask of any arrangement not "is it permitted?" but "does it make people's lives go better?" Morality, for you, has a face and a feeling behind it, not just a rule.
The pivotal figure is Adam Smith — but the Smith almost no one quotes. Before The Wealth of Nations there was The Theory of Moral Sentiments, and it is the half of Smith your tradition kept. There Smith grounds the whole of social life in sympathy and the judgment of an impartial spectator, and treats commerce as something that grows within moral institutions and human fellow-feeling, not against them. Markets, on this reading, are engines of widely shared prosperity precisely because they are embedded in trust, decency, and concern for others — means to human flourishing, never ends in themselves, never a god to be served at the expense of the people they exist for. The Scottish synthesis is exactly this: that free exchange and genuine care for others are complements, not rivals.
John Stuart Mill carried the balance forward. Mill defended liberty and markets as overwhelmingly good, while insisting — against any libertarian absolutism — that their outcomes can be examined and, where human flourishing demands it, adjusted. The wager your worldview makes is Mill's wager: that markets are mostly right, that freedom is mostly the answer, and that admitting the exceptions does not collapse the case but keeps it honest. You can hold liberty as a near-rule without mistaking it for a religion.
Even Friedrich Hayek belongs here, in a version his fiercest admirers tend to forget. Behind the caricature of the free-market absolutist is the Hayek who explicitly endorsed a basic floor beneath which no one should fall — a minimum of food, shelter, and security as entirely compatible with a free society — and who grounded the case for liberty not in dogma but in its consequences for human flourishing under uncertainty. That is the Hayek your politics carries forward: liberty defended because it works for everyone, including those at the bottom, rather than because it is sacred.
The contemporary voice is Deirdre McCloskey, who turned the Scottish intuition into an empirical thesis about the modern world. Across her work on what she calls the Great Enrichment, McCloskey documents the astonishing fact at the center of your worldview: that in the last two centuries, commercially tested betterment and the dignifying of ordinary work lifted billions of human beings out of the poverty that had been the universal human condition — a gain in well-being unlike anything in prior history, driven by liberty and exchange rather than by central direction. Her argument is the data behind your instinct.
What you inherit, then, is the Scottish conviction that sympathy and the market are allies — and the willingness to judge freedom by how it treats the vulnerable. From Hume, morality grounded in fellow-feeling rather than rule. From the other Smith, markets as means to flourishing, rooted in moral sentiment. From Mill, the balance that holds liberty as a near-rule open to humane adjustment. From Hayek, the safety net and the consequentialist case for freedom. From McCloskey, the historical evidence that liberty has been the greatest anti-poverty program ever run. The throughline is that you defend markets for the sake of the people they serve — which is why open borders and free trade strike you not as cold abstractions but as among the most compassionate policies on offer, the ones that have actually pulled the world's poor upward. The tension you carry is the one your position cannot escape: exactly how much adjustment, how high a floor, how many exceptions, before the freedom that does the lifting is compromised — and the loneliness of a stance too pro-market for the left and too pro-poor, too pro-immigrant, for much of the libertarian right. But you hold the most humane version of the freedom argument there is: you would give liberty up if it ever stopped helping people, and that is exactly why you can be trusted with it.