The gap between Kantian moral theory and liberal institutional practice creates real-world atomistic outcomes, making the distinction between stated principles and effects material.

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Atomistic(as a criticism of how libertarians view the self): Treating individuals as completely separate, self-contained units with no necessary connection to others—like atoms that don't naturally bond.
Kantian moral theory(as the subject of the statement's critique): A system of ethics developed by philosopher Immanuel Kant (1724-1804) that emphasizes universal moral rules and treating people as ends in themselves, not just as means to an end. Kant believed certain actions are right or wrong based on principles that should apply to everyone equally.
Liberal institutional practice(as contrasted with stated moral principles): The actual way that institutions like governments and organizations operate in liberal societies (ones that value individual freedom and democracy), as opposed to what they officially claim to believe.
The distinction between stated principles and effects(the main philosophical problem being identified)

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