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Title: Libertarianism and Liberalism
Author: Kevin Carson
Date: March 2008
Language: en
Topics: libertarianism, liberalism, analysis, c4ss, Georgism, individualism, Left Libertarianism
Source: Retrieved on 1st September 2021 from https://c4ss.org/content/11951][c4ss.org]], [[https://c4ss.org/content/12507][c4ss.org]] and [[https://c4ss.org/content/12511

Kevin Carson

Libertarianism and Liberalism

Libertarianism and Liberalism: What Went Wrong

Since the general theme of this blog is an anti-authoritarian entente –

or even coalition – of diverse liberal and libertarian elements, one

question that comes to mind is: “What are the most objectionable

features of both establishment libertarianism, and establishment

liberalism, from the standpoint of achieving such a coalition?”

1. Mainstream libertarianism

The problem with mainstream libertarianism is its almost total departure

from its radical roots. Early classical liberalism was a revolutionary

doctrine, which declared war on the most entrenched class interests of

its day. Even the most mainstream of classical liberals (like Adam

Smith, James Mill and David Ricardo) displayed considerable hostility to

the landed oligarchy and the politically connected mercantilists who

dominated Britain in the early nineteenth century. And the classical

liberal movement included, as well, a large radical wing represented by

thinkers like Thomas Hodgskin, who saw the new capitalist system as a

bastard fusion of partially free markets and industrialism with the old

feudal class system. For Hodgskin, the new industrial capitalists were

amalgamating with the old landed aristocracy to form a new ruling class.

The capitalist system that was coming into existence was not a free

market, but a new class system in which capitalists controlled the state

and used it to enforce special privileges for themselves, in exactly the

same way that the landed interests had controlled the state for their

own interests under the Old Regime.

The significance of this radicalism increases when you bear in mind that

Hodgskin’s radical wing of classical liberalism overlapped heavily with

the early socialist movement, back when a major part of the workers’

movement still aimed simply at abolishing the special privileges of

landlords and capitalists and building a market economy based on

workers’ cooperatives.

The radical wing of the classical liberal movement did not by any means

disappear, even when classical liberalism as a whole shifted rightward.

It survived in the American individualist anarchism of Warren, Tucker

and Spooner, and in the various offshoots of Henry George (e.g. Albert

Nock and Ralph Borsodi), among other places. Nevertheless, it was

relegated to the margin of the larger classical liberal movement.

For the overall movement, the transition came toward the middle of the

nineteenth century, when the industrial capitalists had supplanted the

landed elites as the dominant class in Britain. At this point, the main

body of classical liberalism shifted its emphasis from an attack on

entrenched privilege of the great land-owning classes and mercantilists,

to a defense of the interests of industrial capitalists.

With the political triumph of the Third Estate, the mainstream of

classical political economy–the generation after Ricardo and Mill–made

the switch to what Marx called “vulgar political economy,” and took up

the role of hired ideological prizefighters for capitalist interests.

From a revolutionary ideology aimed at breaking down the powers of

feudal and mercantilist ruling classes, mainstream libertarianism has

evolved into a reflexive apology for the institutions today most nearly

resembling a feudal ruling class: the giant corporations.

A useful illustration of the shift is the contrasting positions of the

early and late Herbert Spencer. The early Spencer was a disciple of

Thomas Hodsgkin, who attacked the artificial property rights of the

landed elites and regarded the rents collected by the great landowners

as a species of taxation. The later Spencer (although still a more

complex thinker than these remarks might suggest) was described by

Benjamin Tucker:

It seems as if he had forgotten the teachings of his earlier writings,

and had become a champion of the capitalistic class. It will be noticed

that in these later articles, amid his multitudinous illustrations (of

which he is as prodigal as ever) of the evils of legislation, he in

every instance cites some law passed, ostensibly at least, to protect

labor, alleviate suffering, or promote the people’s welfare. He

demonstrates beyond dispute the lamentable failure in this direction.

But never once does he call attention to the far more deadly and

deep-seated evils growing out of the innumerable laws creating privilege

and sustaining monopoly. You must not protect the weak against the

strong, he seems to say, but freely supply all the weapons needed by the

strong to oppress the weak. He is greatly shocked that the rich should

be directly taxed to support the poor, but that the poor should be

indirectly taxed and bled to make the rich richer does not outrage his

delicate sensibilities in the least. Poverty is increased by the poor

laws, says Mr. Spencer. Granted; but what about the rich laws that

caused and still cause the poverty to which the poor laws add? That is

by far the more important question; yet Mr. Spencer tries to blink it

out of sight.

In other words, as Cool Hand Luke would say, “Them pore ole bosses need

all the help they can get.”

2. Establishment liberalism ,

Establishment liberalism, on the other hand, is all too true to its

roots. Its origins lie at the turn of the twentieth century.

After the Civil War, American society was transformed by giant,

centralized, hierarchical organizations: the large corporation and the

large government agency. To these was eventually added the large

charitable foundation and the university. All these large organizations

shared a common organizational style, and a common managerial culture.

Progressivism, which was the direct ancestor of twentieth century

liberalism, was the ideology of the professional and managerial New

Middle Classes that ran these large organizations. Especially as

exemplified by Herbert Croly and his associates in the New Republic

circle and the National Civic Federation, Progressivism sought to

organize and manage society as a whole by the same principles that

governed the large organization. The managerial revolution carried out

by the New Middle Class, in the large corporation, was in its essence an

attempt to apply the engineer’s approach (standardizing and

rationalizing tools, processes, and systems) to the organization of

society as a whole. And these Weberian/Taylorist ideas of scientific

management and bureaucratic rationality, first applied in the large

corporation, quickly spread not only to all large organizations, but to

the dominant political culture. The tendency in all aspects of life was

to treat policy as a matter of expertise rather than politics: to remove

as many questions as possible from the realm of public debate to the

realm of administration by “properly qualified authorities.” As a New

Republic editorial put it, “the business of politics has become too

complex to be left to the pretentious misunderstandings of the

benevolent amateur.” At the same time, the individual was transformed

from the independent and self-governing yeoman of the Jeffersonian

ideal, to the client of professional bureaucracies. He became a “human

resource” who took orders from the Taylorist managers at work to whom he

had alienated his craft skills, went hat in hand to the “helping

professionals” to whom he had alienated his common sense, and expressed

his “individuality” entirely in the realm of private consumption.

Conclusion .

So what do we need? Libertarianism needs to move back to its radical

roots. The elements of the libertarian movement that favor genuinely

free markets as a matter of principle, as opposed to defending corporate

interests under the guise of phony “free market” rhetoric, need to

separate the sheep from the goats.

Liberalism, on the other hand, needs to move away from its managerialist

roots (”The body of Leviathan and the head of a social worker,” in

Joseph Stromberg’s memorable phrase) and become more genuinely

left-wing. It needs to embrace direct democracy, self-management, and

decentralism.

I think there is a huge, unmet demand in this country for a third

alternative in politics. Right now, mainstream American politics

consists of a Daddy Party and a Mommy Party. The Daddy Party, the Banana

Republicans, want to turn this country into one giant dioxin-soaked

corporate sweatshop, while acting as Pecker Police and making sure

nobody catches a glimpse of Janet Jackson’s tit. The Mommy Party,

personified by a 900-foot-tall nanny in kevlar vest and gas mask, has as

its slogan “Momma don’t allow! Momma don’t allow!”

We need an alternative that appeals to everyone who finds both of the

above distasteful. The third agenda would be something along the lines

of the “Common Sense II” pamphlet put out by the People’s Bicentennial

Commission thirty years ago, which promoted local self-government and

cooperative economics. Its centerpiece would be reducing the power of

both big government and big business, and devolving power to human scale

political and economic organizations subject to direct democratic

control. The overriding principle would be to eliminate privilege, and

to eliminate all the ways that government currently stacks the deck in

favor of the rich and big business, and then get out of the way as much

as possible. Let workers keep the share of our product that’s currently

consumed by useless eaters (landlords, usurers, bureaucrats, and

licensed monopolists), and then do with it as we will.

Liberalism: What’s Going Right

In “Libertarianism and Liberalism: What Went Wrong,” I tried to describe

some of the features of conventional libertarianism and conventional

liberalism that inhibit an anti-authoritarian coalition between them. In

this post, I’d like to mention some promising trends within liberalism

that offer hope for common ground with libertarians.

At the most modest level, I’ve been encouraged in some ways by Obama’s

insurgency against Clinton, who personifies the most objectionable

features of establishment liberalism. Obama’s preference for working

with the market mechanism instead of through the administrative state

(purportedly resulting from the influence of Austan Goolsbee on his

economics staff), seems on the whole to be a positive sign.

Of course Obama and Goolsbee are a mixed bag. The positive note is

tempered somewhat by Goolsbee’s part in the NAFTA flap. Assuming there’s

some fire behind that smoke, his fondness for NAFTA suggests he

conflates “markets” way too much with the existing corporate system. His

idea of “democratizing markets,” as Daniel Koffler describes it in the

link above, relies heavily on subsidies to higher education, which

sounds too much like both the New Labour and New Democratic approach:

Accepting corporate domination and meritocracy as given, and using

education as a social engineering tool to turn everyone into managers.

The danger is that Goolsbee’s affinity for “markets” will translate, not

into taking big business off the government teat, but into simply

splitting the difference with the Reagan/Thatcher version of banana

republicanism – in other words, the DLC model of kinder and gentler

neoliberalism.

I also confess to being a bit sick of Obama’s whole Oprah/New Age/”Law

of Success” shtik about everybody just getting along, and transcending

partisan differences, and all that happy crappy. I might be in a bit

more conciliatory mood after the bleeding heads of every billionaire and

Fortune 500 CEO in America are mounted on pikes along Wall Street. We’ll

just have to wait and see. As for Oprah’s recycled version of the old

“name it and claim it” gospel, I care a lot less about whether the board

rooms “look like the rest of America,” than about the power those

boardrooms exercise in the first place.

Still, there’s the possibility that with Obama’s more genuinely

left-wing (as opposed to liberal) voting record, and the influence of

Goolsbee’s market-friendliness, he might just manage to combine them in

a novel way that promotes egalitarian goals outside the conventional

liberal box. The combination of pro-market and left-leaning rhetoric,

taken at face value, offers at least a hope of the kind of thing Jesse

Walker mentioned (“How to be a Half-Decent Democrat“) as a way for

Democrats to attract libertarian votes,

Don’t be a slave to the bureaucracy. Look, I don’t expect you to turn

into a libertarian. But there are ways to achieve progressive goals

without expanding the federal government, and if you’re willing to

entertain enough of those ideas, you’ll be more appealing than a

“free-market” president who makes LBJ look thrifty. You could talk about

the harm done by agriculture subsidies, by occupational licensing, by

eminent domain, by the insane tangle of patent law. And no, I don’t

expect you to call for abolishing the welfare state — but maybe you’d

like to replace those top-heavy bureacracies with a negative income tax?

Consistently applied, what this suggests is essentially the

geolibertarian approach of replacing the administrative and regulatory

state with Pigovian taxation of negative externalities and economic

rents, and replacing the welfare state bureaucracy with a basic income

funded by taxation of rents and externalities.

Although Obama’s departures from establishment liberalism are modest at

best, the same tendencies show themselves much more strongly elsewhere

within the traditional liberal camp.

RFK, Jr. is a good example. He refers to markets in a positive way, but

(unlike Obama and Goolsbee) sharply distinguishes the free market from

corporate capitalism. In fact he demonizes the corporate economy in

terms of free market principles,

You show me a polluter and I’ll show you a subsidy. I’ll show you a fat

cat using political clout to escape the discipline of the free market

and load his production costs onto the backs of the public.

… Free markets, when allowed to function, properly value raw materials

and encourage producers to eliminate waste – pollution – by reducing,

reusing, and recycling…

The truth is, I don’t even think of myself as an environmentalist

anymore. I consider myself a free-marketeer.

Corporate capitalists don’t want free markets, they want dependable

profits, and their surest route is to crush the competition by

controlling the government.

Let’s not forget that we taxpayers give away $65 billion every year in

subsidies to big oil, and more than $35 billion a year in subsidies to

western welfare cowboys. Those subsidies helped create the billionaires

who financed the right-wing revolution on Capitol Hill and put George W.

Bush in the White House.

Even better, Dean Baker has explained how the conventional “liberal” vs.

“conservative” scripting on economic issues gets everything exactly

backward:

Political debates in the United States are routinely framed as a battle

between conservatives who favor market outcomes, whatever they may be,

against liberals who prefer government intervention to ensure that

families have decent standards-of-living. This description of the two

poles is inaccurate…

It is not surprising that conservatives would fashion their agenda in a

way that makes it more palatable to the bulk of the population, most of

whom are not wealthy and therefore do not benefit from policies that

distribute income upward. However, it is surprising that so many

liberals and progressives, who oppose conservative policies, eagerly

accept the conservatives’ framing of the national debate over economic

and social policy. This is comparable to playing a football game where

one side gets to determine the defense that the other side will play.

This would be a huge advantage in a football game, and it is a huge

advantage in politics. As long as liberals allow conservatives to write

the script from which liberals argue, they will be at a major

disadvantage in policy debates and politics. The conservative framing of

issues is so deeply embedded that it has been widely accepted by

ostensibly neutral actors, such as policy professionals or the news

media that report on national politics. For example, news reports

routinely refer to bilateral trade agreements, such as NAFTA or CAFTA,

as “free trade” agreements. This is in spite of the fact that one of the

main purposes of these agreements is to increase patent protection in

developing countries, effectively increasing the length and force of

government-imposed monopolies. Whether or not increasing patent

protection is desirable policy, it clearly is not “free trade.” It is

clever policy for proponents of these agreements to label them as “free

trade” agreements…, but that is not an excuse for neutral commentators

to accept this definition….

Unfortunately, the state of the current debate on economic policy is

even worse from the standpoint of progressives. Not only have the

conservatives been successful in getting the media and the experts to

accept their framing and language, they have been largely successful in

getting their liberal opponents to accept this framing and language, as

well. In the case of trade policy, opponents of NAFTA-type trade deals

usually have to explain how they would ordinarily support “free trade,”

but not this particular deal. Virtually no one in the public debate

stands up and says that these trade deals have nothing to do with free

trade….

Testify!

Libertarianism: What’s Going Right

In “Libertarianism and Liberalism: What Went Wrong,” I gave my opinion

of what was wrong with both mainstream libertarianism and mainstream

liberalism (”wrong” in the sense to presenting an obstacle to an

anti-authoritarian coalition of liberals and libertarians). In my last

post, “Liberalism: What’s Going Right,” I discussed some reasons for

hope within movement liberalism: some individuals who show signs of

thinking outside the box when it comes to abandoning the worst features

of the liberal establishment and finding common ground with free market

libertarians. Now I’d like to do the same thing on the libertarian side.

The following are tendencies and subgroups within the larger free market

libertarian movement, loosely defined, that largely steer clear of

“vulgar libertarianism” (i.e., pro-corporate apologetics under the cover

of phony “free market” rhetoric) and present some basis for a possible

entente not only with liberalism but with the broader left. I may write

additional, more detailed posts later on some of these groups, but my

purpose here is just to summarize them.

1. Classical Indivudalist Anarchism

The movement with which I identify most closely as a libertarian, also

probably the least important from the standpoint of actual influence, is

the classical individualist anarchism of Josiah Warren, Lysander

Spooner, Benjamin Tucker and the Liberty circle. I call us “classical”

to distinguish us from modern, left-leaning followers of Murray Rothbard

who also claim the individualist anarchist label–not because the latter

are not entitled either to that label or to our good fellowship, but

because there are substantive differences and we need some verbal

distinction to reflect them. The central difference is that we classical

individualist anarchists still view our free market libertarianism as a

form of socialism, and have views on rent and profit that are closer to

those of Tucker’s Boston anarchists than to the Austrianism of Rothbard.

Modern adherents of this nineteenth century radicalism include Shawn

Wilbur, Joe Peacott, Joel Schlosberg, Matt Jenny, and Crispin Sartwell

(although I’ve probably missed a few). R.A. Wilson, recently departed,

promoted this version of anarchism in The Illuminatus! Trilogy (for

example here).

On a related note, Larry Gambone of the Voluntary Cooperation Movement

is heavily influenced by the mutualism of Pierre-Joseph Proudhon and

Robert Owen, the direct European ancestors of American individualism.

Gambone played a large role in introducing Proudhon’s thought to modern

North American anarchists (see his pamphlet “Proudhon and Anarchism“).

He and Dick Martin, both in British Columbia, are the primary editors of

Any Time Now.

2. Left-Rothbardianism

The left-Rothbardians trace their origins to Murray Rothbard’s project,

in the late ’60s and early ’70s, of an alliance with the New Left

against the corporate state. Rothbard and other right-wing libertarians

contributed to the New Left journal Ramparts (home of David Hororwitz,

before he became an odious neocon) and William Appleman Williams’

revisionist history study group Studies on the Left. Rothbard’s journal

Left and Right, and the early volumes of Libertarian Forum, were largely

preoccupied with the New Left alliance.

Rothbard himself abandoned the project as hopeless after a few years,

and moved rightward. But his close associate Karl Hess went on (for a

while) to develop much closer ties of affinity to the left,

participating in a community technology project in the Adams-Morgan

neighborhood of Washington DC and even joining the Wobblies. And another

Rothbard associate, Samuel Edward Konkin III, founded the Movement of

the Libertarian Left as a vehicle for continuing Rothbard’s Old

Right/New Left project. Konkin’s central contribution to what he called

“Agorism,” the New Libertarian Manifesto (warning: pdf), is available at

Agorisim.Info (with a lot of other Konkin pamphlets as well). The

current Alliance of the Libertarian Left and Blogosphere of the

Libertarian Left include many of those who have preserved and continued

this left-Rothbardian line of thought.

3. Geolibertarianism

Geolibertarianism, or Georgism, is large; it contains multitudes.

Founded (of course) by Henry George, it amounts to an whole libertarian

movement of its own, with variants ranging pretty far to the left and

right: from Albert Jay Nock, Frank Chodorov and Fred Foldvary on the

right, to Ralph Borsodi and Michael Hudson on the left.

Georgism and individualist anarchism are both unlike mainstream

contemporary libertarianism in that they remain much closer in spirit to

the classical liberalism of Paine, Smith and Ricardo. Both retain the

classical political economists’ understanding, abandoned by the main

line of marginalist economics, that “land is different” from other

factors of production because, as Will Rogers said, “They ain’t making

any more of it.”

The central idea is that land isn’t governed by the normal market

mechanism that regulates the price of reproducible goods, by driving it

toward production cost. The more social wealth increases, the more

people and dollars are bidding up the fixed supply of land, so that

rents continue to rise relative to wages and more and more wealth

disappears down the landlords’ rathole. The Georgist remedy is to

eliminate all taxes on labor and capital, and put a “single tax” on the

site value of land, so as to make unearned scarcity rent the main source

of tax revenue. The effect is for the land currently being held out of

use for speculative purposes to be put to use by human labor, and for

rents to fall relative to wages.

The most left-leaning version of Georgism is the geolibertarian agenda I

mentioned in my earlier post: taxing land value, resource extraction,

and carbon emissions and other externalities, funding a guaranteed

minimum income out of this rent collected by society, and then allowing

progressive ends to be promoted entirely by the price incentives

resulting from these policies, in a totally unregulated market. The idea

is that in a society where workers have the bargaining power that comes

with unlimited access to cheap land and a social dividend of ten or

fifteen thousand bucks per capita, labor regulations will be

superfluous. And in a society where pollution is heavily taxed and the

price of fossil fuels reflects high severance fees, the same is true of

pollution laws. And so on, and so on.

I’m not a Georgist, for reasons that would require way too much

digression to go into now. But George’s thought, in all its

manifestations, has been an immensely positive leavening force on both

left and right, bringing out the best aspects of both communities. On

the left, it softens the tendency to rely on the bureaucratic state, and

promotes in its place an egalitarianism that works through the removal

of privilege and the perfection of market mechanisms. On the right, it

counteracts the instinctive tendency to rally to the defense of the rich

and corporate interests.

Each of these movements, in its own way, offers some potential as a

basis for common action with the left against the increasing

authoritarian police state, and against the corporate-state nexus that

dominates the economy.