The Republicans lost because they not only failed to embrace the liberty movement in general but actively sought to diminish it and mock it at the same time. The Republican Party has not had such a large infusion of young blood by motivated young people since the days of Barry Goldwater. Not only that, Ron Paul appeals to minorities, women and LBGT community in a way that the Republican Party can only dream of. It is mind boggling that the Republican Party would reject such a strong political ally.
There are number of articles that explain in a convincing way how the loss of the Ron Paul wing of the Republican party brought Mitt Romney down. To me this is fairly obvious. Almost all the people that I knew that were for Ron Paul either wrote his name in, voted for Gary Johnson, or stayed home on election day. With millions of Ron Paul supporters in the primary, even if half of them stayed home would have brought Mitt down. Don’t get me wrong. Mitt was a really bad candidate and would have likely lost on his own. He stood for nothing and was a pure politician in all the worst ways. The only thing that might have saved him was if he actively brought the Liberty Movement and the Ron Paul crowd on board.
So ignore the spin by the right and the left on why the empty suit lost and the other empty suit. This is why the Republican establishment went down. The grass roots activists are fed up with this kind of behavior from their leaders.