Here is where Sheria illustrates how wrong Paul is on this particular subject:
"Society is the whole, individuals are the parts. Societies were formed by the individuals to create a system in which the individuals could agree to live governed by rules to protect the common good. Locke, Rousseau, Hobbes, Jefferson and many others have defined this concept as it relates to the purposes of goverment. Those who do not wish to agree to the social contract are free to live outside of it but cannot then also benefit from it. (i.e. you don't have to own a business) This is the basic flaw of Rand Paul's argument that a private business has the right to engage in discrimination. Businesses are by definition public enterprises. Its goods and services are sold to the public and as such the business is part of our system of commerce. The regulation of commerce is constitutionally assigned to Congress. If the businessman wishes to engage in discrimination, he may do so but not via his public enterprise. It's up to him to figure out how to run a profitable business enterprise without engaging in public commerce, if he wishes to engage in discrimination as to whom may partake of his goods and/or servces.
However, in a society, we all agree to subvert our individual liberties to the benefit of the function of the whole. To not do so results in anarchy and a society in which no one has any security. Whatever property that I may have secured would constantly be at risk of being taken by someone who had the strength to do so in a world governed by the supreme right of the individual. Instead, we have laws, enforcers, and systems of punishment to maintain order so that property rights, mine and yours, are not subject to the arbitrary will of might makes right. Which brings me to the final element of the social contract, governments are not instituted to protect the rights of the strong but rather to ensure that even the weak have protections. Otherwise, in the words of Hobbes,we would be in a constant state of war, and man would be a solitary being living an existence that is nasty, brutish and short."
Blue Gal wrote on this as well.