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Canadians Confused by the Correct Use of the Term “Liberal” – Article by Jeffrey A. Tucker

Canadians Confused by the Correct Use of the Term “Liberal” – Article by Jeffrey A. Tucker

The New Renaissance Hat
Jeffrey Tucker
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The Canadian Broadcasting Corporation has been following the political upheavals in the US with some curiosity. In light of this piece, they called me to discuss where the Republican ticket is representing capitalism well. In the course of the interview, I described myself as a fan of commercial society, free enterprise, deregulation, and therefore a classical liberal. I said later that I’m a radical liberal.

Much to the amazement of the producers, it was this section of the interview (which was heard by more than a million people) that caused the biggest response. They were flooded with comments of confusion. Why does this guy call himself a liberal?

The producers were intrigued enough to do an entire segment on the topic, the results of which were interesting and substantial. Of course the topic is complex because the meaning of the word has changed so much in the last 100 years. The corruption of the term became so intense following World War II that the leftover liberals had to change their name to libertarians.

And today matters are in flux. In Eastern Europe and large parts of Latin America, the term is used correctly. In Europe, it is a mix. In the UK, the word liberal is coming back as a description of people who celebrate commercial society, favor peace, support civil liberties, and reject big government. In the US, the term has been left on the table, but is still mostly associated with the opposite of its traditional meaning.

The result of the CBC’s investigative efforts are as follows.

On last week’s episode of The 180, we spoke with Jeffrey Tucker, a self-described ‘classical liberal.’ He argued Donald Trump is giving capitalism a bad name, by presenting himself as a titan of industry, when he’s really more of an entertainer.

After that interview, we received notes from people questioning Tucker’s bona-fides as a ‘liberal,’ since he spoke highly of individual liberties, free markets, and limited government. Some said Tucker was clearly a ‘neo-liberal,’ some said he was a ‘large R conservative,’ presumably meaning Republican, while others thought the term ‘classical liberal’ had plenty of negative connotations all on its own.

So what is a classical liberal?

First off, you should totally click the play button on this page to hear the audio explainer. It’s got all kinds of fun music and clips of people using the word ‘liberal’ in weird and hilarious ways. Like when Rush Limbaugh said the Soviet Union and Cuba and China were run by ‘liberals.’ Weird.

Part of the problem with the word ‘liberal’ is it’s used differently across time, and across countries. In Canada, the word mostly means a supporter of the Liberal Party, or someone in the political middle. In the United States, it means a strong social progressive, and in some circles can mean a socialist or a communist. In Europe it’s associated with internationalism and free migration. In Australia, in the words of Australian Liberal Party leader Malcolm Turnbull, it means the primacy of “freedom, the individual, and the market.” 

That last one, the Australian definition, is probably closest to what political scientists consider a classical liberal view.

John Locke

If you want to get what classical liberalism is, and where liberalism as an ideology comes from, you gotta know about this guy, John Locke. 

Locke was an English philosopher who lived in the 17th century, and one of the most important people in the development of liberalism, both classical and modern, according to Barbara Arneil, Professor of Political Science at the University of British Columbia.

“In essence what he introduced to the political lexicon was the idea of individual rights. He said individuals have rights by nature, and if the government does not serve those rights, then the people could get together and reject the government. So in essence, this idea of individuals and their rights begins the notion that the government is answerable to individual people.”

This was still a time of kings and emperors and lords and barons, so Locke’s ideas were rather significant. And these liberal ideas influenced a good deal of western society, including the founding documents of the United States of America.

“Thomas Jefferson drew a lot of his philosophy from John Locke. He saw him as the greatest political thinker. So there’s a lot of Locke in the American Declaration of Independence. On the economic side, Locke was also somebody who developed the idea of the right to private property. So we have both the political and economic repercussions and we see them right around the world. All the bills of rights, really originate with Locke’s original idea.” 

So if someone says they’re a classical liberal as opposed to modern liberal, they’re probably more in line with Locke’s original sentiments.

Times change, so do words, and so do ideas

At some point, liberalism shifted from its emphasis on individual liberties, to include regulating business, and using the government to support individuals, rather than simply leaving them alone. According to Lee Ward, Associate Professor of Politics and International Studies at the University of Regina, the shift is part of the industrial revolution throughout the 18th and 19th centuries.

“The term liberalism takes on a new kind of meaning, politically. Sometimes called ‘welfare liberalism. At that point, liberalism is accommodating the new demands produced by industrialization. So classical liberals in the 17th century were talking about an economy that was very rudimentary compared to what we have today. A bank in the 17th century doesn’t mean the same thing as a bank in the 20th century. So by the time you get to the 20th century, liberalism has changed.”

To Barbara Arneil at UBC, it’s not simply that the definition of liberalism changed, it’s that over time, some people changed their conception of ‘freedom’. Whereas classical liberals think of liberty as being free from interference, modern liberalism considers whether the government can support people in society to freely pursue their goals.

“I think the thread that remains throughout all liberal thought is the idea of the individual and their freedom. So initially, freedom is understood as being free of restraints. But now we have a different definition of freedom, and it’s about  having the necessary supports to have freedom that has any meaning.”

The concepts of liberalism, both classical and modern, are political philosophies and ideologies not specific political affiliations, and these concepts, among others, influence parties across the Canadian spectrum.

Labels and insults

In the United States, ‘liberal’ is often used as an epithet. To some degree, the terms ‘neo-liberal’ or ‘social conservative’ or ‘socialist’ are also used as negative descriptors in Canada. 

To Ward, it’s not particularly helpful to use philosophical terminology as a pejorative, or to try and sum up a person’s character or values with a snippy line about liberals, conservatives, socialists, or anarchists.

“I worry that sometimes we throw out terminology as weapons, as rhetorical jabs. Understand that behind all of the different perspectives and ideologies, there’s some claim to justice there. And even if I disagree in large measure with much of what’s being said, there’s is some truth that is being expressed. There’s something good in it. As good as it is to be engaged in politics and to really care about what’s happening, it’s also good to step back sometimes and to understand that when we use terms like conservative, liberal, progressive, socialist, they’re all reflecting a certain claim to justice, and there’s probably something in each of those that we can agree with.”

According to Ward, if we could understand that behind all the terms we throw around to describe people, there is a rich intellectual history, we could have more respectful and constructive political debate.

Jeffrey Tucker

Jeffrey Tucker

Jeffrey Tucker is Director of Content for the Foundation for Economic Education and CLO of the startup Liberty.me. Author of five books, and many thousands of articles, he speaks at FEE summer seminars and other events. His latest book is Bit by Bit: How P2P Is Freeing the World.  Follow on Twitter and Like on Facebook. Email

This article was originally published on FEE.org. Read the original article.

Actually, “Neoliberalism” Is Awesome – Article by Scott Sumner

Actually, “Neoliberalism” Is Awesome – Article by Scott Sumner

The New Renaissance HatScott Sumner
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Unfortunately, What’s Best for the World Is Not Best for Every Subset of It

I am seeing more and more articles, even at respectable outlets such as the Economist and the Financial Times, suggesting that the rise of right-wing and left-wing populism shows that something is wrong with the neoliberal model.

Nothing could be further from the truth. The past two decades have been by far the best two decades in human history, and that’s what really matters.

Naysayers will sometimes acknowledge that hundreds of millions of people have recently risen out of poverty, but then claim that living standards have stagnated in America. That’s also nonsense, as I explained in this post.

The next fallback position is that while real incomes in America have risen, the gains have gone to corporations, not workers. That’s also nonsense, as I explained in this post. The share of national income going to workers today is the same as it was 50 years ago, the supposed heyday of the working class.

The next fallback position is that while wages have done fine, even in real terms, wage income is becoming less equal. Bingo! Finally we get to an accurate statement. Fifty years ago, blue-collar workers at General Motors often made more than college professors. People with short attention spans sometimes act like this period was “normal”, ignoring 10,000 years of human history. They seem to suggest that our most pressing problem is that young men who don’t study in school and just shoot rubber bands across the classroom should be able to earn an income that (in relative terms) was never possible in any period of world history before the 1950s and has never been possible in any period of world history after the 1970s. It reminds me of when farmers used to set the “parity” of farm prices with other goods prices based on the relatively high levels of 1909-14, treating that ratio as normal for purposes of farm subsidies.

Don’t get me wrong: I have nothing against blue-collar workers. I’m relatively intellectual, and even I found the public schools to be mind-numbingly boring. I could hardly stay awake. I can’t even imagine how students less interested in ideas than I am could’ve gotten through the day. Nor am I one of those conservatives that will trash low-income whites for their lifestyle choices. As far as blue-collar workers are concerned, I wish them well. But I wish everyone well (except Trump), and the unfortunate truth is that the set of economic policies that is best for the world right now is probably not optimal for a subset of American blue-collar workers.

When I point out that the most important factor in trade policy is the impact on the poor in developing countries, some of my commenters tell me that the US shouldn’t have to import from China or India because they have lots of other countries to sell to. As Marie Antoinette might’ve said “let them sell to Canada.” That’s right, progressives ease their conscience by claiming that other developed countries won’t follow the same evil trade policies that progressives like Sanders want the US to follow, so things won’t actually be that bad for poor people in Bangladesh. More often, they entirely ignore the issue.

I know that progressives like to think of themselves as the good guys, but the honest truth is that on trade they are increasingly becoming the bad ones, right along with Trump.

And here’s what else people don’t get. Not all the problems in the world are caused by neoliberal economic theories, for the simple reason that not all economic policies reflect neoliberal economic theories. Even if everything people say about inequality is true, there’s nothing wrong with the neoliberal model, which allows for the EITC, progressive consumption taxes, and sensible reforms of intellectual property rights, occupational licensing, and zoning laws.

I can’t help it if Democratic politicians oppose reforms of intellectual property rights. I can’t help it if progressives that once favored progressive consumption taxes now oppose progressive consumption taxes. I can’t help it if Democrats voted to repeal the luxury tax on yachts soon after having enacted a luxury tax on yachts. I can’t help it if progressives suddenly feel that a $15 an hour minimum wage is not a loony idea.

The simple truth is that neoliberal economic policies work, as we’ve seen in Denmark and Switzerland and Singapore, and socialism doesn’t work, as we’ve seen in Venezuela. So I’m asking all those wavering neoliberals in the respectable press (Thatcher called them “wets“) to stop your handwringing and get out there and boldly defend the neoliberal model. It’s not just the best model; in the long run it’s the only model that really works.

Scott B. Sumner is the director of the Program on Monetary Policy at the Mercatus Center and a professor at Bentley University. He blogs at the Money Illusion and Econlog.

This article was originally published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

Labels and Ideological Bubbles – Article by Sanford Ikeda

Labels and Ideological Bubbles – Article by Sanford Ikeda

The New Renaissance Hat
Sanford Ikeda
August 30, 2013
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Be mindful of how you label the people with whom you disagree.

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When I engage in an ideological discussion I try to be sensitive to how I ideologically label the person with whom I’m talking and how she labels me. I’m not talking about dismissive or openly pejorative words (e.g. evil, stupid, silly), but proper terms of discourse. More than just good manners, how we habitually label our opponents in ideological dialogue could reveal something unpleasant about the ideological world we inhabit.
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Getting the Label Right

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Now, some people argue that “ideas matter, labels don’t.” When we’re talking about specific ideas, such as for example military intervention in the Middle East, then yes calling it liberal, libertarian, progressive, socialist, or whatever may add nothing to the discussion. But when referring to the worldview of a particular person or group of like-minded persons, especially in the context of a public debate, then how we label ourselves and others can matter a great deal. If the goal is to promote constructive dialogue then it’s important to get the labels right.
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We prefer in such cases to be called by the label that we identify ourselves with. I don’t like being called a conservative or a liberal because those labels signify sets of ideas and policies, many of which I do not hold. I prefer to be called a libertarian. (Classical liberal might be better but no one in the mainstream knows what that is.)
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Colleagues I’ve known for decades at my college assume that I’m a conservative because I’ve come out publicly against nationalized healthcare, from which they wrongly infer that I oppose same-sex marriage and that I “support our troops” in foreign wars. Readers of The Freeman have, I’m sure, had to defend themselves against the charge of being “pro-business” because of our skepticism of regulation and high taxes. We have to explain that upholding the free-market is not pro-business, pro-consumer, or pro-labor (although the free-market position is in a sense “pro” all those things and more). That kind of mislabeling, however annoying, can be the result of an honest mistake—one I know I make myself.
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Mistakenly mislabeling someone is one thing: conservative for libertarian, marxist for progressive. Another is deliberately mislabeling your opponent, a trick that forces her to waste time defending herself against the false charge. But there’s a third kind of mislabeling that reflects a deeper sort of error, one that issues from exclusivity and insularity.
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Who calls herself a Neoliberal or a Statist?

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For example, I’m reviewing a book about cities whose author uses the word “neoliberal” a lot. It’s used mostly by Europeans on the political “left”—e.g., social democrats, progressives, socialists, greens—to refer to people or groups who hold some sort of “libertarian” views. I’ll explain in a moment why I’m using scare quotes here.
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From what I’ve been able to gather from my European colleagues, however, no one actually identifies herself as a “neoliberal.” Neoliberal is apparently a term some attach to positions “on the (extreme) right,” which apparently includes people thought to have an anti-union or pro-business agenda. There are such people, of course, but there’s a reason no one self-identifies as a neoliberal.
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As Stanley Fish explained a few years ago in The New York Times: “…neoliberalism is a pejorative way of referring to a set of economic/political policies based on a strong faith in the beneficent effects of free markets.” So “neoliberal” is pejorative.
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And before libertarians get too indignant, let me point out that we sling words like “collectivist” and “statist” when describing our opponents, and to my knowledge no one self-identifies with those terms, either. To be sure, among our ideological comrades, they may have a fairly clear meaning and may spark a certain esprit de corps. But consistently using a word, over a wide range of venues, to describe others that no one ever uses to self-identify is a pretty good sign that you live in an ideological bubble.
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Evidently, while the author of the book I’m reviewing says she’s writing for “an interdisciplinary readership,” she takes it for granted that it will be an ideologically sympathetic one.
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Our Ideological Bubbles

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An ideological bubble, as I’m using the term, is a social network with shared ideological understandings that closes its members off to others with opposing views. You can be a staunch market-anarchist, for example, but still be willing to have a serious, civil conversation with people with whom you strongly disagree. Put simply, you live in an ideological bubble if the only people whom you will talk to seriously about ideology are those you already agree with.
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An ideological bubble insulates us from real-time criticisms of our principles and positions, retarding our intellectual growth. It gives us a false sense of security and breeds self-satisfaction, off-putting harshness, and intolerance—things destructive to civility. Also, keep in mind that it’s often the bystanders to a debate whom we want to persuade, and they will consider our language and conduct when judging our ideas.
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One of the things I’ve learned from my great teacher Israel Kirzner is that we can’t realistically be aware of all of our current limitations because we simply don’t know all that we don’t know. We have blind spots, and that means intellectual bubbles of all sorts are inevitable.  But that doesn’t mean that they have to remain invisible to us. Kirzner also taught us that creative discovery is possible. The signs are there, and keeping an eye open to them will give us a chance to make them at least a little more permeable.
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Sanford Ikeda is an associate professor of economics at Purchase College, SUNY, and the author of The Dynamics of the Mixed Economy: Toward a Theory of Interventionism.
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This article was originally published by The Foundation for Economic Education.