Why is libertarianism so infallible?

It is due to it being the application of political science. It does not permit failed policies to be continued fruitlessly year after year with idealistic fervour, it is next to impossible for anyone surrounded by fierce libertarian critics to continue clinging on to lies. It is a purely functional machine, lubricated with justice and fueled by free speech.

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... unions try to press up the wages as much as possible, leading to a decease in amount of people companies can afford to hire, leading to less output etc. ?

"economic freedom increases efficiency" that's a pretty big statement to pull out of the hat. How much economic freedom? complete economic freedom? and what exactly do you mean with economic freedom, just "no taxes" ?