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August 15, 2008
I sometimes glance through the Institute of Public Affairs quarterly Review looking for interesting material about liberalism in Australia. Often I'm disappointed as I don't learn that much about liberalism in Australia. A case in point is the editorial in the July issue of the Review by Chris Berg, the editor. Berg says that:
Liberalism's opponent today is not socialism, as it was when the IPA Review was founded in 1947; liberal philosophy now stands against an arguably more challenging adversary--soft 'market-orientated managerialism, which professes an appreciation of competition and commerce, but is in fact dedicated dedicated to limiting it.
That sounds reasonable. But who is Berg referring to when talking about liberalism's opponent? The Liberal Party that has embraced corporatism, big government and defended the entrenched interests of the big end of town? Or the ALP? Or both? We on the left would call Berg's 'market orientated managerialism' neo-liberalism, but Berg seems to imply that this is not liberalism. It is todays left.
Of course. Silly me. How could I forget. But then I thought that today's left had given up socialism for liberalism. Aren't we all liberals today----conservatives excepted, of course? Berg explains:
Today's left do not carry utopian Marxist tracts that contain fully elaborated plans for revolutionary government. But now the left clutches cherry picked studies from fields of psychology and behavioural economics. We are told that markets are irredeemably irrational, that we need to increase taxed in order to fully count for 'social costs;' and externalities, and that only a Nanny State can look after us. The left has replaced the socialist objective with a rigid utilitarianism that has no interest in any philosophical or moral discussion about the appropriate limits of government action.
Dear me. That dastardly left. Who are they? Social liberals? The left--eg.,the ALP-- are Australian liberals because utilitarianism is a classic form of liberalism (Jeremy Bentham, John Stuart Mill and all that), and utilitarian liberalism has been Australia's public philosophy since the 1860s or so. As an aside utilitarianism is a moral philosophy as its criteria to judge the right action is the greatest happiness for the greatest number.
I can only infer that what Berg is saying is that todays left must have embraced a false liberalism as opposed to a true liberalism. Why then, is utilitarian liberalism a false liberalism? Berg informs us thus:
They [the left] are nonchalant about the impact their policy prescriptions will have on individual freedom. And they are positively hostile to the concept of personal responsibility---people are too irrational to take responsibility for their own actions, and if they did, there would be too many 'social costs' for the government to possibly tolerate. The need for a liberal of liberalism in 2008 is just as strong as it was in 1947.
Isn't neo-liberalism--- Berg's 'market orientated managerialism'--- all about individual responsibility and rolling back the welfare state of social democracy? Berg, it seems to me, is fighting a family feud within liberalism. The argument is that some form of liberalism (free market liberalism) is good whilst other forms (utilitarian liberalism) is bad.
Update
The core philosophical issue here is: 'what is the philosophical basis or justification for Berg's good liberalism, if it is not utilitarianism? Why should we choose his good (libertarian) liberalism as opposed to the bad liberalism of today's left? Presumably, the account would be along the lines that it gives us greater individual freedom, understood in a negative sense of freedom from state regulation and coercion. So why is greater negative freedom better? Because.......?
The IPA owe us an account here, since, on my reading of their publications, they reject both social liberalism and rights based (a natural rights doctrine) liberalism. Is there another form of liberalism? Or is the IPA crowd closet utilitarians? I've interpreted the IPA as working within the ‘Austrian school’ of economists, (Ludwig von Mises and Friedrich von Hayek); a tradition that is more concerned with the ultimate aggregate benefits of free markets and with the need to counter the state's inherent tendencies to expansion and inefficiency. This school is consequentialist in orientation and so utilitarian.
if this interpretation is plausible, then Berg's argument against today's left for being utilitarian liberals no longer holds because the IPA crowd are also utilitarians. Consequently, further argument is needed to distinguish the good utilitarian liberalism of the IPA from the bad utilitarian liberalism of today's left (Rudd Labor). The word 'rigid' is not enough to do the work required.
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The IPA just hates regulation of the free market. Regulation is about intervention into the free market. The latter would do its job if it were just left alone by heavy handed governments (the Nanny State), which trammel on the freedom of rational, self-interested individuals.