Thursday, 01 October 2015
This is a guest post from Peter Sloman who is a lecturer in British politics at the University of Cambridge.
I read Simon Radford’s series of articles on liberal economics after the crash with a mixture of agreement and frustration, so I am grateful for the opportunity to respond with some historical reflections. Simon’s clarion-call for the Liberal Democrats to re-engage with economic theory is persuasive and well-timed: I could not agree more that,
"the opening up of economic debate post-2008 has given liberals an opportunity to unearth the liberal tradition in economics and assert its relevance, both for economics as a field, and for a voting public starving for a new progressive vision."
Yet the notion that there is a single liberal tradition in economics is as problematic coming from Simon on the post-Keynesian left as it is coming from David Laws in The Orange Book. If liberalism is at root a political movement, seeking ‘to provide the greatest possible array of capabilities and opportunities to everyone’, we should not be surprised that British liberals have drawn on a wide range of theoretical perspectives. Rightly or wrongly, the Liberal Party has consistently sought to hold the ‘orthodoxy’ of (neo)classical economics and the heterodoxy of figures such as Henry George, J. A. Hobson, and John Maynard Keynes in a kind of creative tension.