COSMOS + TAXIS If Not Left-Libertarianism, then What? A Fourth Way out of the Dilemma Facing Libertarianism LAURENT DOBUZINSKIS Department of Political Science Simon Fraser University 8888 University Drive Burnaby, B.C. Canada V5A 1S6 Email: [email protected] Web: http://www.sfu.ca/politics/faculty/full-time/laurent_dobuzinskis.html Bio-Sketch: Laurent Dobuzinskis’ research is focused on the history of economic and political thought, with special emphasis on French political economy, the philosophy of the social sciences, and public policy analysis. Abstract: Can the theories and approaches that fall under the more or less overlapping labels “classical liberalism” or “libertarianism” be saved from themselves? By adhering too dogmatically to their principles, libertarians may have painted themselves into a corner. They have generally failed to generate broad political or even intellectual support. Some of the reasons for this isolation include their reluctance to recognize the multiplicity of ways order emerges in different contexts and, more 31 significantly, their unshakable faith in the virtues of free markets renders them somewhat blind to economic inequalities; their strict construction of property rights and profound distrust of state institutions leave them unable to recommend public policies that could alleviate such problems. The doctrine advanced by “left-libertarians” and market socialists address these substantive weaknesses in ways that are examined in detail in this paper. But I argue that these “third way” movements do not stand any better chance than libertari- + TAXIS COSMOS anism tout court to become a viable and powerful political force. The deeply paradoxical character of their ideas would make it very difficult for any party or leader to gain political traction by building an election platform on them. Taking this into account, I sketch an alternative “fourth way” perspective. Drawing on a few postmodern insights, while staying clear of the il- liberal proclivities of radical postmodern thinkers, this approach suggests that the resources of civil society can be mobilized at the level of micro-politics to achieve at least some of the goals and values dear to libertarians while also attempting to remedy injustices along the lines of what left-libertarians and market socialists have proposed. Keywords: Left-libertarianism, market socialism, economic rent, Henry George, Léon Walras, micro-politics, Ruth Lane INTRODUCTION sophical reflection. From an epistemological standpoint, these approaches best capture the still relatively neglected, The question this paper tackles is this: Can the constellation yet profoundly insightful intuition that much of the socio- of theories and approaches that fall under the more or less economic world operates according to the logic of a spon- overlapping and not very precise labels “classical liberalism” taneous order.1 Second, economically liberalized markets or “libertarianism” be saved from themselves? Before I out- generate the greatest amount of material goods compared to line the dangers they face, which result in part from what any other economic system. Finally, liberal regimes, though can best be described as self-inflicted wounds, I should prone to various sorts of dysfunctional excesses (e.g., rent- explain first why they are worth saving. There are at least seeking behaviours), are the least likely to violate the rights three reasons why this is a worthwhile exercise in philo- of their citizens. IF NOT LEFT-LIBERTARIANISM, THEN WHAT? A FOURTH WAY OUT OF THE DILEMMA FACING LIBERTARIANISM But by adhering too dogmatically to these principles, unconstrained use of property rights. In this paper, I am libertarians2 have sometimes painted themselves into a concerned mostly with the former, and with the question corner. This dogmatism limits libertarians’ ability to gener- of whether left-libertarianism stands any better chance than ate broad political or even intellectual support. To give an libertarianism tout court to become a viable and powerful account of these self-inflicted wounds, I again make use of political force, rallying both the advocates of freedom and of the same three dimensions. With regard to epistemology, a minimalist version of “social justice.” Hayekian libertarians adhere a little too rigidly to the notion All these developments are occurring against the back- of spontaneous order and, as Gus diZerega (2013) argues, of- ground of the deepening crisis of the welfare state, such as ten fail to recognize the multiplicity of ways order emerges the concerns about the financial sustainability of universal in different contexts. Further, libertarians’ economic, social and publicly funded pensions plans. The welfare state his- and political views account for their political weakness. (I torically emerged as an attempt to find a third way between am targeting bona fide libertarians; several political parties, 19th century-style classical liberalism and socialism. In the for example, the Republican party in the United States and wake of the Great Depression, many perceived Capitalism conservative parties in Australia, Canada, and the United as unable to provide stable employment and minimum stan- Kingdom have included libertarian ideas and slogans in dards of justice to the majority of wage earners; however, their political programs, of course, but their electoral suc- many saw that socialism, especially Soviet-style socialism, cess has been due to their ability to combine these with other posed an evident threat to liberty and democracy. On the priorities that appeal to a broad spectrum of constituencies, intellectual front, an egalitarian re-interpretation of liberal- and have resulted in programs and policies that cannot be ism originating in the writings of T.H. Green and Leonard fully reconciled with libertarian norms and values, such as Hobhouse, culminating in John Rawls’ political theory, had 32 devoting a considerable proportion of the budget to military helped to legitimize the welfare state, while John Maynard COSMOS + TAXIS COSMOS expenditures.) Keynes’ macroeconomics provided the economic justifica- Generally, the libertarians’ unshakable faith in the vir- tion for massive state expenditures. However, Keynesianism tues of free markets renders them somewhat blind to eco- failure to deal with the stagflation of the late 1970s coupled nomic inequalities and their attendant political issues; their with the worsening fiscal position of most western liberal strict construction of property rights and profound distrust democracies, has led to a refocusing of priorities. While in of state institutions render them unable to recommend pub- practice, interventionist economic policies have remained lic policies that could alleviate such problems. I prefaced largely untouched, political rhetoric and philosophical dis- these criticisms with the qualifier “generally” because they course has, once again, shifted in the direction of free mar- obviously lack finesse. Libertarians (e.g., Pennington, 2011; kets and libertarian principles. (The critics of this trend refer Tomasi, 2012) have addressed these criticisms by pointing to it as the rise of “neoliberalism.”) Yet, the consequences of out that both from a theoretical standpoint and in practi- the Great Recession has slowed the trend toward market- cal terms, free markets can generate effective and principled oriented policies. As a result of the ambivalence about both responses to real and perceived injustices. Others, however, market-oriented policies and interventionist programs, left- have been willing to concede that new policy directions and libertarian seeking a third way have an opportunity to pres- even a reformulation of the libertarian doctrine are required. ent new policies promoting the best parts of market policies, At the moment, the preferred policy innovation favoured by while still providing a defense of a social safety net. But if libertarians is the replacement of some or most of the pro- political theorists are excited about such prospects, political grams associated with the welfare state by a Basic Income inertia stands in the way of profound reforms. The enormous Guarantee (BIG), an unconditional income paid to each and influence of rent-seekers in both the public sector and the every individual and pegged at a level that would allow re- world of business—even if they pursue opposite short-term cipients to meet their basic needs (Murray, 2006; Gordon, goals—combine to make institutional and policy innova- 2014). More substantial revisions of the libertarian doctrine tions extraordinarily difficult. While in a sense very peculiar are advanced by “left-libertarians” and market socialists.3 to the American constitutional system, the “gridlock” that I explain further below in much greater detail what differ- has paralysed Washington in recent years is symbolic of the ences separate classical liberalism/libertarianism from these inability of liberal democracies to move radically in new di- offshoots; at this point it suffices to say that they involve sig- rections (or even to experiment with relatively more modest nificant deviations from the libertarian commitment to the VOLUME 2 | ISSUE 1 2014 COSMOS + TAXIS proposals such as BIG).4 But inertia is not the only obstacle the labour theory of value, Ricardo recognized that the price facing third way political economy. of land depends on the scarcity of arable land. The return In the next section, I explore in more detail the origins, to land