March 9, 2016

The term "neoliberal" always has puzzled me. "Neoconservative" also can be confusing in that second-generation neocons, unlike their elders, are not former liberals, are more rigidly conservative, and focus on an imperial foreign policy, but in each generation we have known pretty much where they stand. "Neoliberal" is more elusive in meaning, describes people in different parts of the political spectrum, and seems to have variations within variations.

A long, erudite article on Wikipedia [21] defines neoliberalism "primarily in reference to the resurgence of 19th century ideas associated with laissez-faire economic liberalism." The roots of that attitude lie in the eighteenth century. In that sense, it has a different meaning and implies different policies than modern political liberalism, and so is misleading. The original neoconservatives were, literally, new conservatives; Ronald Reagan, identified as a practitioner of one branch of this form of neoliberalism, hardly qualifies as a new liberal. His beliefs were not a new liberalism, but an old conservatism: reducing government spending, cutting taxes, deregulation, fighting inflation.

The article refers to another form of neoliberalism, one which more properly could be described as such. However, the use is accurate not because the adherents were new liberals, but because they espoused what they considered to be a new style of liberalism. It was advocated by Bill Bradley, Gary Hart, Paul Tsongas and others in the 80s and adopted by Bill Clinton. A book devoted to the phenomenon attempted, without success, to define it; the closest approach was a description by Arthur Schlesinger, Jr., a critic: "[Neoliberals] have joined in the clamor against ‘big government,’ found great merit in the unregulated marketplace, opposed structural change in the economy and gone along with swollen military budgets and the nuclear arms race. Far from rejecting the Reagan frameworks, they would at most rejigger priorities here and there."[22]  That may be too harsh, but certainly Clinton’s campaign promise to end welfare as we know it (and signing a Republican reform bill), his declaration that the era of big government is over, and his approval of the repeal of Glass-Steagall fit the description. Whatever the precise formula, some variation on this centrist stance still influences Democratic economic philosophy.

That philosophy has been challenged by Bernie Sanders. It’s unfortunate that he is a socialist, not only because that term confuses and frightens so many, but because a challenge to economic centrism might be more effective from within. However, his critique is enough to make some nervous; take the columnist Thomas Friedman, a self-identified neolib, as an example. On February 17, he went on at length about entrepreneurship and asserted that "we're not socialists." He would, he said, "take Sanders more seriously if he would stop bleating about breaking up the big banks and instead breathed life into what really matters for jobs: nurturing more entrepreneurs and starter-uppers." He seems to think that Senator Sanders doesn’t know where employees come from. "They come from employers — risk-takers, people ready to take a second mortgage to start a business." No doubt, with a little deregulation, they all would succeed and employ thousands.

Friedman advised Sanders to consult a study which allegedly would tell him this: "The identity of America is intrinsically entrepreneurial [enshrined] by the founders, popularized by Horatio Alger, embodied by Henry Ford." The source actually said: "The identity of America is intrinsically entrepreneurial. It is an indelible part of our collective history—sown by the Founders, popularized by Horatio Alger, embodied by Henry Ford." The original is silly enough — the founders spent little time nurturing startups, and the notion that anyone can become rich if he shows a little pluck might embarrass the Chamber of Commerce — but Friedman found it necessary to substitute "enshrined" for "sown," thereby adding a semireligious aspect to the admiration of business.[23]   Friedman also quoted, accurately, from the same paragraph in the original: "With enough hard work anyone can use entrepreneurship to pave their own way to prosperity and strengthen their communities by creating jobs and growing their local economy." A factory worker whose job has been shipped overseas needn’t worry; he can launch a high-tech business. This naïve tale is the delight of conservatives. Flirtation with it by Democrats may be one reason they have lost the votes of working people.

________________________

21. https://en.wikipedia.org/wiki/Neoliberalism

22. Ronald Rothenberg, The Neoliberals (1984); quote on p. 19.

23. Friedman referred to an article, "Milstein Commission on Entrepreneurship and Middle-Class Jobs," which in turn refers to a report, "Can Startups Save the American Dream?" from which his mangled quotation is taken: http://web1.millercenter.org/conferences/milstein/MilsteinReport-AmericanDream.pdf