Sunday, 18 March 2018
Professor David Howarth, formerly LibDem MP for Cambridge, contributes to the new SLF book with a powerful, closely argued essay on Liberal economics. This an extract:
Here is a puzzle: if JS Mill, JM Keynes and James Meade were all Liberals and economists, what is a ‘neo-liberal’ economist? One might have thought that it would be someone who updated their thought to consider new facts and new problems.
In a highly successful example of propaganda and disinformation, ‘neoliberal’ has come to mean the doctrines of Friedrich Hayek or Milton Friedman. But those doctrines are anything but ‘neo’. They hark back to the era before Mill. We need to rectify names. Instead of ‘neo-liberals’ the followers of Hayek and Friedman might be called ‘paleo-partial liberals’.
The next step is to reclaim the Liberal tradition. That was the avowed aim of the editors of the Orange Book, but what some of them seemed to mean was not updating Mill, Keynes and Meade but abandoning them in favour of paleo-partial liberalism. Admittedly the diagnosis was not entirely wrong. The Liberal Democrats, as a political party, had wandered a long way from the Liberal tradition and had succumbed to various forms of conventional wisdom.