Conversely Emperor Nero, who fiddled while Rome burned, was definitely the first libertarian. Those romans with burning houses shouldn't have expected government handouts and pulled themselves up via bootstraps!
Indeed. This was something that should've been left to charities. If charities can't do the job, it's not the government's fault.
Putting the fire down would do far greater longterm damage: damage to the spirit of private initiative, demeaning people into accepting a handout. We should respect the invisible fire of markets.