The "liberal" in liberal democracy stands for classical liberalism, not "liberalism" in the US sense.

Classical liberalism is often identified with libertarianism so I just want to emphasize that the "liberal democracy" refers to liberalism in a generic, John Stuart Mill, sense. From wikipedia:

It is characterized by fair, free, and competitive elections between multiple distinct political parties, a separation of powers into different branches of government, the rule of law in everyday life as part of an open society, and the protection of human rights and civil liberties for all persons.

This generally includes strong private property rights but certainly doesn't prohibit a welfare state.

Moldbug's philosophy is consistent with classical liberalism; when he talks about "liberalism" being a bad thing, he means the US modern sense.

I don't agree.

Moldbug is basically pro-free market but that doesn't, at all, make him a classical liberal. And he treats the American left as continuous with it's classically liberal ancestors-- who were all women's liberationists and abolitionists and free marketers! John Stuart Mill and Jeremy Bentham were humanists, to the Left of Quakers and Unitarians.

"Liberalism" in the modern US sense he is, of course, particularly critical of. But aside from recognizing the success and power of the free market, I don't see how his philosophy is at all consistent with classical liberalism or the liberal democrats of old.