Tag Archives: social democracy

So I was hesitant to get into ideological discussions but the argument often gets made that even if austerity is unpopular we must defend the small government “Classical Liberal” tradition. That argument needs to be answered- yes there has always been a laissez-faire strand of Liberalism, however, the idea that Liberalism only means small government and free markets is an idea that dates from around 1980.

Liberalism has a quite complicated and wide-ranging history from being initially associated with generosity (as in the word Liberality, a liberal act meant a generous one), to the alternative association of the French revolution (describing someone as a “Liberal” was an insult intended to suggest they were radical revolutionaries, there was no suggestion that Liberals were aiming for small government as such, just that they were anti-monarchist.). Liberalism went on to include large sections of the early Socialist movement, including such hailed Classical Liberals as John Stuart Mill. Early Liberalism was actually not very much to do with economics at all and was more part of the Whig and Republican movements that were about moving from a feudal system to the beginnings of democracy. (I heartily recommend Helena Rosenblatt’s ‘A forgotten history of Liberalism” for more of that story.)

It’s because of these political instincts and aims that when it became clear that unregulated markets were hurting people in the late 19th century Liberals changed policy rather than changing ideology. That’s where the social reforms of Asquith and Lloyd-George came from, leading into the Social Insurance systems of Beverage and the economic theories of Keynes. That’s how the Liberal party ended up to the left of the pre-merger SDP and how the Liberal Democrats ended up to the left of New Labour. It’s not an aberration, it’s just the natural place that Liberalism ended up.