The libertarian approach is to privatize recovery of social costs so that instead of government internalizing the aggregated social cost into the transaction, each individual who can demonstrate an unlicensed adverse impact from the transaction has a personal cause of action to recover damages resulting therefrom.
A particularly generous libertarian might recognize a class action as an appropriate mass venue for aggregating such claims.
In a libertarian utopia governments are not supposed to add taxes to neutralize negative externalities.
Also, a $50,000 car does not have double the societal impact as a $25,000 car (which could be larger and less fuel efficient). Progressive taxes aren't a very libertarian construct.
Wait, what?
https://en.wikipedia.org/wiki/Human_rights_in_Singapore
https://www.theguardian.com/world/2016/feb/10/hong-kongs-bus...
Which probably reflects that people are more willing to be exposed to market fluctuations when their basic necessities are met by the state.
Erm, all those things(+) can, and do, happen in 'free' countries. They're just not officially sanctioned and are reported differently. If you were to look at this objectively (without depending on just the official figures) I'd say per capita, human rights abuse / exploitation is worse in the US than Singapore.
(+) and worse, eg: get executed for being the wrong color at the wrong time and place
There are also still cars in Denmark (no problem seeing them when I visited Aarhus), just not as many as in the states.