Posted tagged ‘liberalism’

The angry brigade, intolerance and the assault on Enlightenment values

October 10, 2016

Last night I watched the second US presidential debate. I wasn’t sure what to expect, or for that matter what I would find most satisfying, but I wanted to see it happening live. The post-debate consensus appears to be that Hillary Clinton won a particularly nasty event – in which, mind you, the nastiness did not particularly come from her.

But if we are horrified, as I am, by all the bile and aggression, we have to acknowledge that it’s not just appearing in American politics. In Europe the language of political discourse is taking similar forms in some contributions from France and Germany (and elsewhere). In Britain we have just witnessed a party’s internal ‘debate’ that involved an emergency hospital visit. And often when we get to hear members of the public contributing to a discussion the tone is one of anger.

There are several layers to this phenomenon, and the most obvious one is not the most important. Commentators are referring to the current political mood as something unprecedented – a growing group of people who have become angry because they have been ‘left behind’, because the gap between their means or aspirations and those of an ‘elite’ has widened excessively, whose fears and discomforts are not identified and addressed by that elite. In fact some of this is a true reflection of global societies: income inequality has been growing, albeit less because of pressures on the poor but more because of a huge growth in more extreme wealth. But then again, how can we explain such anger leading to support by the angry for a billionaire (Donald Trump) or for a former city trader (Nigel Farage)?

The more significant element here is that the angry sections of the population have, as people often do, been looking for someone to blame; and across continents that someone is the foreigner. The key shout has been to stop migration. This is by far the most important, and the most worrying, aspect of recent trends in popular opinion, and of political responses to it.

Of course concerns with immigration can be quite rational. No place can at short notice accommodate a massive influx of people, as Germany has discovered, and a clash of cultures between migrants and host communities can create genuinely uncomfortable (and indeed unacceptable) consequences. It is not disreputable to say that immigration must be managed intelligently. But you can measure the competence and integrity of politicians by the way they undertake this task, a hugely important part of which is to stop the emergence of xenophobia and racism. Many of the current generation of leading politicians globally (with some very honourable exceptions) are failing dismally. Or worse, they see it as their opportunity to follow the mob and stoke the fires of resentment.

The key victim of all of this is the western post-war liberal consensus. In Britain the attack on liberal values has most recently come from politicians who might have been expected to defend them, but who appeared to conclude that they must side with public opinion (as for example expressed in the Brexit decision). Some academics have recently pointed out that UK politicians are departing from the Enlightenment values that actually have their origins in Britain and which made the country a beacon of tolerance and decency. And this is a dangerous road on which to travel; it has only ever led to catastrophe.

Those of us who still believe in liberal Enlightenment values, even where we understand the pressures facing people in their lives, must not now stay silent. We should not be intimidated by the insults flying in our direction, often from the left as much as from the right. The freedoms that we all still enjoy are very very easily lost, and very hard to recover when they are.

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The ideology and reality of markets

July 26, 2008

For ten years, while I was Professor of Law at the University of Hull in North-East England, I lived in what is usually described as the old ‘market town’ of Beverley. Beverley does indeed have a market. The centre of the town is dominated by the old market square, going by the name of ‘Saturday Market’. And indeed today, as on every Saturday throughout the year, market stalls will have been erected and the casual shopper will be able to purchase a wide variety of goods, from fresh fruit and vegetables, through electrical and consumer good, to textiles and footwear – with lots of other things in between. People will come from the surrounding countryside, and in some respects the scene will not be that different from what it has been for hundreds of years. Markets such as this were usually established in the Middle Ages when the monarch granted the right to local noblemen (usually), so that people from something like a six-mile radius could purchase goods that would have been produced locally.

A ‘market’ in this sense (and in pretty much any other sense) is a place or an interaction where buyers and sellers of goods or services meet to agree a price for the transaction. It works best when there is ‘competition’, that is where there are several buyers and sellers, thereby assuring a reasonable rate for the exchange based on its objective value. Or put another way, a market is a distribution mechanism for goods and services, designed to ensure that the price is objectively reasonable.

As the analysis of trade became more sophisticated by the 17th and 18th centuries, the concept of a market acquired more and more significance in the emerging economic theory. The basis of modern market theory was in particular expressed by the philosopher Adam Smith, in his famous book An Inquiry into the Nature and Causes of the Wealth of Nations (1776), in which he argued that a free market was both the most efficient and also the most benign way of securing and sustaining prosperity.

In England supporters of the concept of free markets as an economic and political tool were by the 19th century styled ‘Liberals’, and in some contexts the label of ‘liberal’ still has that meaning. Indeed ‘liberal’ ideology not only pursued free market goals in economics and trade, but also in personal morality and conduct, as liberals disliked restrictions and regulations and taboos in these areas, thereby providing the bridge to what most people nowadays consider a ‘liberal’ outlook.

Not everyone was enthusiastic about markets as a form of liberalisation or even liberation. Hegel and Marx both were opposed to the free market concept – a particularly interesting critique of Adam Smith can be found in Marx’s Grundrisse der Kritik der Politischen Ökonomie (1861); although it might also be added that the concept of ‘market socialism’ emerged later in the 19th century.

By the 20th century – and the late 20th century in particular – the market had for some become a major ideology in the economics sphere. Markets were no longer just rational mechanisms for the exchange of goods and services, they were a mystical concept with opaque but unstoppable powers. The expression that you could not ‘buck markets’, which was popular in particular in the British Conservative government of Margaret Thatcher and in the writings of some of the high priests of the intellectual movement underpinning Thatcherism and Reaganism (particularly F.A. von Hayek), suggested that markets were not trading or policy devices but forces of nature. The ‘market’ became the God of the capitalist West, set against the ‘Evil Empire’ of the Soviet-style planned economy based on Marxism.

Of course all things must pass, and this particular form of market ideology did, too. And as the ideological battlegrounds of the Cold War disappeared from view after the fall of the Berlin Wall, the certainties of market ideology were also somewhat diluted.

Perhaps the early 21st century is a good time to re-assess markets. I have had a long interest in the idea and use of markets. It is arguable, for example, that you could trace the development of social policy through law by using market metaphors of supply, demand and distribution. And closer to my own current professional life, you could look at universities and education and ask whether markets can provide a useful tool for the development of policy. Furthermore, the restraint and regulation of markets is of major significance in almost all modern activities, and deserves close attention.

In other words, markets are not just locations (as in Beverley) or activities, but a market is also a metaphor for the analysis of policies, activities and conditions.

From time to time in this blog I shall develop this thinking a little further. This is a selfish activity, as I am working on a book on this general topic, and I am looking here for feedback and stimulation. So I am hoping for comments here. Maybe I also need to write a piece on plagiarism, so that I remember to give proper credit to any inspiration I may get.