Like many people most Libertarians feel empathy and sympathy for less fortunate people. But they know you can't have perfection in a world of limited resources.
Libertarians argue that no normal adult has the right to impose choices on other normal adults except in abnormal circumstances such as when one person finds another unconscious and administers medical assistance or calls an ambulance.
Obama is trying to paint us as a caricature as if we're some bizarre individualists who are hardcore libertarians. It's a false dichotomy and intellectually lazy. Of course we believe in government. We think government should do what it does really well but that it has limits.
Libertarians know that a free country has nothing to fear from anyone coming in or going out - while a welfare state is scared to death of poor people coming in and rich people getting out.
The Ten Commandments have never been replaced as the moral basis upon which society rests.