Lecture 10 The Liberal Democrats: Social or Economic Liberalism

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Lecture 10The Liberal DemocratsSocial or
Economic Liberalism?

• Dr Tom Quinn
• GV519 British Political Parties
• 15 December 2009

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Origins of Liberalism

• Enlightenment attack on religious power
  scientific advance
• French/American Revolutions attack on
  autocratic and unaccountable power
• Industrial revolution and capitalism freedom in
  economic relations
• Liberalism dominant ideology in West
• Universalist ambitions
• Key themes of liberalism

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1. The Individual

• Historically unique focus on individuals
• Feudalism Monarch, Lords, peasant clear social
  division and social roles
• Capitalism, free labour free from control
• Emphasis on individual rights
• Atomised society
• Socialists class/community gt individual
• Conservatives organic society gt individual

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2. Freedom

• Individual liberty principal value for liberals
• Negative freedom freedom from
• Economic liberalism freedom from state
  interference in the market
• Adam Smith free market ? socially beneficial
  outcomes
• It is not from the benevolence of the butcher,
  the brewer or the baker that we expect our
  dinner, but from their regard to their own
  interests. (Smith)
• JS Mill the Harm Principle (On Liberty, 1859)
• Censorship, homosexuality
• Positive freedom freedom to
• Justification for state intervention

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JS Mills Harm Principle
The object of this essay is to assert one very
simple principle, as entitled to govern
absolutely the dealings of society with the
individual in the way of compulsion and control,
whether the means used be physical force in the
form of legal penalties, or the moral coercion of
public opinion. That principle is, that the sole
end for which making are warranted, individually
or collectively, in interfering with the liberty
of action of any of their number, is
self-protection. That the only purpose for which
power can be rightfully exercised over any member
of a civilised community, against his will, is to
prevent harm to others. His own good, either
physical or moral, is not a sufficient warrant
Over himself, over his own body and mind, the
individual is sovereign
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TH Green on Positive Freedom
We shall probably all agree that freedom,
rightly understood, is the greatest of blessings
that its attainment is the true end of all our
effort as citizens. But when we speak of freedom,
we should consider carefully what we mean by it.
We do not mean merely freedom from restraint or
compulsion. We do not mean merely freedom to do
as we like irrespective of what it is that we
like. We do not mean a freedom that can be
enjoyed by one man or one set of men at the cost
of a loss of freedom to others. When we speak of
freedom as something to be so highly prized, we
mean a positive power or capacity of something
that we do or enjoy with others.
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3. Reason

• Reason as rationality
• Enlightenment cast off religion superstition
• Individuals define their own best interests
• Individuals must be allowed to make and learn
  from their own mistakes
• cf. paternalism
• Reasoning in debate
• Settling arguments through debate, not force
• Toleration of dissent

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4. Justice

• Justice a judgment about what people are due
• Liberals justice as equality
• Moral equality human rights
• Legal equality irrespective of class, race,
  etc.
• Political equality universal suffrage
• Equality of opportunity
• Less emphasis on economic equality (but cf.
  social liberals)

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5. Constitutionalism

• Social contract theories
• Govt must keep order rule of law
• State as a neutral umpire
• But liberals suspicious of state power
• Tyranny of the majority
• Checks and balances, separation of powers
• Whig tradition in Britain parliament vs royal
  absolutism, freedom of conscience
• Political liberalism gt economic liberalism

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Transformation of Liberalism

• Economic liberalism suspicion of state
• Extension of franchise ? led some liberals to
  revise view of the state (New Liberalism)
• I quite understand the reason for timidity in
  dealing with this question poverty so long as
  the government was merely the expression of the
  will of a prejudiced and limited few But now we
  have a Government of the people by the people.
  (Joseph Chamberlain, 1885)
• Positive freedom You have, in connection with
  the great municipal corporations, hospitals,
  schools, museums, free libraries, art galleries,
  baths, parks. All these things which a generation
  ago could only have been obtained by the
  well-to-do, are now, in many large towns, placed
  at the service of every citizen by the action of
  the municipalities. (Joseph Chamberlain, 1885)

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Classical vs Modern Liberalism (1)
Classical Liberalism
Modern Liberalism

• Egotistical individualism
• Rational, atomised, self-reliant
• Maximise utility
• Bentham happiness seeking individuals best
  understand their interests
• Negative freedom
• Freedom from the state
• Liberty defined in terms of freedom from external
  constraints

• Developmental individualism
• JS Mill individual flourishing gt narrow
  self-interest
• Personal growth
• Moral, intellectual, aesthetic development gt
  simple happiness seeking
• Positive freedom
• Freedom to
• TH Green, LT Hobhouse people constrained by life
  conditions state must free them

Source Heywood, 2007 60
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Classical vs Modern Liberalism (2)
Classical Liberalism
Modern Liberalism

• Rights-based justice
• Locke life, liberty and property Govt
  protect them, but do little else
• Strict meritocracy
• Social Darwinism hardest working and capable do
  well, the lazy do not
• Individual responsibility
• Individuals must help themselves, not look to the
  Govt for help

• Justice as fairness
• Rawls, veil of ignorance people would see
  degree of equality as fair
• Concern for the poor
• Rawls difference principle some inequality
  but improve conditions for the poor
• Social responsibility
• Govt and society has responsibility to improve
  social conditions and help people help
  themselves

Source Heywood, 2007 60
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Classical vs Modern Liberalism (3)
Classical Liberalism
Modern Liberalism

• Economic liberalism
• Suspicious of state
• Economic freedom (-ve)
• Minimal state
• Adam Smith laissez faire, Nightwatchman state
• Free-market economy
• Invisible hand of the market, free trade
• Safety-net welfare
• Minimal welfare
• Incentives for self-advancement

• Social liberalism
• Positive view of state
• Collectivist? Socialist?
• Enabling state
• Enable self-advancement by removing constraints
• Managed economy
• Keynesianism Govt intervention in economy
• Cradle-to-grave welfare
• Welfare as positive right
• Beveridge want, disease, squalor, ignorance,
  idleness

Source Heywood, 2007 60
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Liberals Party of Government

• Whigs in 18th 19th C
• Reform Act 1832 enfranchised middle classes
• 1850s Liberal Party
• Peelites free-trade Tories joined with Whigs
• Gladstone Govts
• Third Reform Act 1884
• 1906-10 Govt
• Peoples Budget 1909
• 1914 split over WW1

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Liberals Post-1918 Decline
1918 Coalition Liberals 13.4 of votes, 18 of
seats 1931-48 National Liberals separate from
Liberals
1983-87 SDP-Liberal Alliance 1992-2005 Liberal
Democrats
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From Alliance to Liberal Democrats

• Liberal Rebirth in 1974
• SDP (1981) Alliance with Liberals
• 1983 election 25 votes, 3 seats
• Merger in 1988 Liberal Democrats
• Lib Dems 1997 breakthrough
• Tactical voting 46 seats end to equidistance
• Charles Kennedy leader 1999-2006
• Social liberalism gt economic liberalism
• Higher taxes public spending
• Pro-EU (and pro-UN)
• Opposition to Iraq War
• Civil liberties gt security (terror laws, ID cards)

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Contemporary Lib Dem Debates

• 2005 election failed to exploit problems of
  Labour and Tories
• Up to 62 seats but couldve been better
• Social vs economic liberalism
• Lib Dem left (e.g. Simon Hughes)
• Redistributionist
• Modernisers party too statist
• The Orange Book (2004)
• Shift away from leftist positions
• Coup against Kennedy (2006)
• Led by young Orange Book MPs
• Clegg reduce public spending/taxes
• Retained civil-libertarian stance