I provide a defence of the classical liberal tradition (from Locke and Smith to Hayek and Tomasi) as a blueprint for a 'bleeding-heart libertarian' framework of society. Such a society defends three principles: 1) Freedom from private coercion (Private Property), 2) Freedom from public coercion (Limited Government); and 3) Within these limits, the provision of a limited range of public goods and public welfare (Limited Welfare State). I show that principles can be abstracted from a reading of the classical liberal (...) tradition. Then, through an extensive analysis of Locke, I show the importance, and consequentialist justifications, of the Three Principles for any liberal welfare state. Through a critique of Nozick, I show the inadequacy of the hardcore libertarian interpretation. Then, I show that John Tomasi, Adam Smith and Friedrich Hayek have all defended versions of limited welfare states. On this basis, I propose that the Basic Income Guarantee (BIG) is a good example, supported by Hayek, Buchanan and Friedman, of a welfare principle that is compatible with bleeding-heart libertarianism. I believe we can justify, on the basis of a consequentialist theory, that the limited welfare state, which combines welfare with liberty, and the free market with a social safety net, has highly beneficial effects on the society. It thus suggests itself as a viable competitor to rights-based libertarianism and more expansive social liberalism. (shrink)