I've written several times before on the tensions within the liberal democratic consensus, and how the Great Recession (and Iraq War that preceded it) exposed and aggravated them. Both in my first book (“Politics for the New Dark Age: Staying Positive Amidst Disorder") and in my writings on my blog, I’ve argued that only democratic socialism offers the possibility of both more 'freedom' and more democracy – while also delivering on the left's other social goals included fairer, more resilient progress. There is, in other words, left-wing populism and it is good.

I've always been interested in the anatomy of right-wing political philosophy, because we on the left have to understand our opponents if we are to defeat them. The purpose of today's blog is to look briefly at the two 'establishment' right-wing liberal philosophies that are still in contention – neoliberalism and right-libertarianism – and see how they're responding to this moment of crisis. My interest in writing about this topic was sparked by a recent episode of Jacobin's "The Dig" Podcast with Daniel Denvir, discussing the history of neoliberalism. Like most leftists of a certain age, I find it both hilarious and gratifying that some people nowadays self-consciously identify as neoliberal (including my old friend @EconoMeager) rather than taking it as the invisible aether in which we all swim.

An anatomy of fools

Neoliberalism and right-libertarianism share common DNA. Philosophically, they are distinct from the various flavours of conservatism: idealist and utopian – neither especially empirical nor pragmatic – right-wing liberalism permits a degree of social and personal freedom that is anathema to the hard right. They are too 'centrist' for reactionaries in the same way that liberal democrats are too 'centrist' for us on the left. Both neoliberalism and libertarianism are committed to the Hayekian consensus of modern economics: that individual autonomy is the only just way to satisfy individual preferences, and that it is also economically efficient if every social actor engages in autonomous self-help in pursuit of those preferences. At a stretch, both may even argue that autonomous free contracting provides the social glue that binds society together and enables peace and prosperity amongst societies. It posits a harmony between individual and collective ends that is, of course, empirically false (because of collective action problems, market failures and a half dozen other factors).

Of the two, libertarianism gives ontological primacy to the autonomous individual. The boundaries of the private – including and especially private property – are sacred in a very literal way. Upholding the negative rights of the individual – the absence of violence or coercion – is the sine qua non of a just society and no violation of that principle can be tolerated. Right-libertarians distrust the democratic state (as do left-libertarians) because of the significant potential threat it poses to those rights. However, because of the primacy of principle, they are blind to the way in which unequal structures of wealth and power are just as much of a threat to individual freedom as the state. Right-libertarianism justifies authoritarianism by neglect – if it's not the state, then it's not exploitation. And it’s for this reason that right-libertarians tend to have the Trump-iest populist politics.  

Neoliberals take a different tack, and here I am relying explicitly on Dan's interview with the economic historian Quinn Slobodian. Neoliberals give primacy to the market as whole. They value the collective ends of efficiency and growth, and therefore are attracted towards the technocratic and utilitarian. For neoliberals, democratic impulses threaten the efficient operation of the market, so the legal institutions of the state must be made immune from popular accountability. Neoliberals are very comfortable exercising state power, but are deeply ambivalent about its democratic form and are prone to actual honest-to-goodness authoritarian behaviour. Neoliberals are less committed to the principle of individual autonomy – although it’s a valuable aesthetic ornament – and as a result may be more sceptical towards private concentrations of power that corrupt market efficiency (for example, they are often committed to breaking up monopolies in the interest of preserving competition). Neoliberals are anti-populists - and are preserving their elite status by standing with the Never Trumpers.

Different narratives, different faults

The Great Recession, therefore, posed a different challenges to neoliberals and right-libertarians. Like the Iraq War before it, the Great Recession showed that the idealistic utopianism of right-wing liberals was no better at economic management and securing international peace than the utopianism of the left-wing communists. But because of the affective weights they place on different elements of their political and economic model, each diagnoses the political threat from populism differently. These different viewpoints will determine their response to the populist moment and affect their short- and long-term political trajectories.

The neoliberals have the same response as always. The cause of the Great Recession was clearly too much state intervention in favour of housing loans, driven by populist visions of expanding home ownership. Put in charge of their own destiny, people vote for idiots like Trump who blindly rip up decades worth of international law and institutions. The state just needs to be run by smarter people, and if the masses cannot be educated, then they can at least have their biases studied and manipulated so they no longer get in the way. Neoliberals are most content with moving in the direction of further liberal undemocracy: while they can tolerate Jair Bolsonaro in Brazil, they’d much rather live in Xi Jinping’s China than Trump’s America.

The libertarians, too, identify the state as the problem but their response to the current moment of crises has been less coldly calculating and more emotive. For libertarians, the cure for economic inquality and sluggish growth is worse than the disease. Blind to the threat posed to their liberties by private concentrations of capital, libertarians have been eclipsed by the populist right. The true believers remaining are those wealthy or privileged enough to be immune from the consequences of their own ideology. Other [let’s suppose white, working-class] men and women who have been materially affected by the Great Recession are those most likely to follow the siren song of illiberal democracy and right-wing identity politics, trading away the rights and freedoms of others (migrants, women, LGBT communities) so long as they preserve their own slice of the economic pie. It’s only self-interest after all.

What is to be done

I think the left writes off neoliberals at our own peril. Right wing libertarians have always been a fringe movement: well-funded, yes, but incapable of gathering lasting popular appeal outside small groups of narcissists. The defection of most of its voting base into nationalist reaction has shown libertarianism for the paper tiger it always was. But the neoliberals are playing a longer game. When Trump is gone, and the populist moment has passed, they’ll [deservedly] get credit for opposing his free-spending, institution-smashing policies. Moreover, the more they discredit Trumpism, the more they’ll delegitimise the very idea of populist democracy itself. The WTO may be saved by the very people now trying to destroy it. Neoliberals, in other words, retain their considerable social capital amongst elites, and that social capital is going to given them a great deal of political and ideological power in the long-term. If and when right-wing populism fails, it will be up to the left to resurrect the cause of popular democracy.