sign in sign up
<<
Home , Liberal socialism, Morris Ginsberg

Two years before the Labour Party victory of 1997, made a seminal speech L. T. Hobhouse and J. A. Hobson: to the in celebration of the fiftieth anniversary The New Liberal influence on ideas of the 1945 Labour election victory. The speech was a major media event because it was a defining moment for ‘modernisers’. They were seeking to move the party from its socialist history on to ‘new’ political and ideological ground – as well as reap the tactical electoral benefits they felt could be gained by such a shift. Blair used the speech to pronounce himself ‘proud’ to be a ‘democratic socialist’ while redefining to create ‘social-ism’. More relevant here, as seen above, was Blair’s reiteration of British political history from this revised New Labour position. Dr Alison Holmes examines New Liberal influences on Blair’s ‘Third Way’.

16 Journal of Liberal History 55 Summer 2007 L. T. Hobhouse and J. A. Hobson: The New Liberal influence on Third Way ideas

lair listed both L. T exercise it. So they argued for the New Liberal ideas of writers Hobhouse and J. A. collective action, including such as Hobhouse and Hobson Hobson amongst the state action, to achieve positive that were to carry through to intellectual corner- , even if it infringed the modern interpretation of the stones of both New traditional laissez-faire liberal Third Way. LiberalismB and New Labour – orthodoxy … They did not call later termed the Third Way: themselves socialists, though Hobhouse coined the term J. A. Hobson The ‘progressive dilemma’ is ‘liberal socialism’, but they Hobson was born in Derby on 6 rooted in the history of social shared the short-term goals of July 1858, seven years after Brit- and economic reform in Brit- those in the Labour Party … ain had hosted the Great Exhibi- ain. Up to 1914 that history was The New Liberals were … liv- tion, nine years after the repeal defined by the Liberal Party’s ing on the cusp of a new politi- of the Corn Laws and nearly efforts to adapt to working- cal age, transitional figures ten years after the last Char- class demands. This involved spanning the period from one tist demonstrations. As the son the gradual replacement of the dominant ethic to another … of the owner of the Derbyshire classical liberal ideology based J. A. Hobson was probably the and Staffordshire Advertiser, per- on non-intervention and ‘neg- most famous Liberal convert haps journalism was an obvious ative freedom’ with a credo of to what was then literally ‘new option but he became a journal- social reform and state action Labour’.1 ist only after studying at Lincoln to emancipate individuals from College, Oxford, and teaching the vagaries and oppressions As will be seen, both Hob- classics and English literature of personal circumstance … house and Hobson were very in Faversham and Exeter. It was The intellectual bridgehead much responding to their time. only when he moved to Lon- was established by Hobhouse The context, timing and events don in 1887 and met William and others. They saw the nine- surrounding their intellectual Clarke of the Fabian Society teenth-century conception of development were crucial to the (also a co-founder of a progres- as too thin for the pur- evolution of what was called the sive discussion group known poses of social and economic New . This article will as the Rainbow Circle) that he reform, so they enlarged it. outline the two main debates at began his political and journal- They realised that theoretical the time, over evolutionary the- Top: Tony Blair; far istic career. liberty was of little use if peo- ory and the Manchester School, left: L. T. Hobhouse; London was just recover- ple did not have the ability to while looking for indications of left: J. A. Hobson ing from nearly a decade of

Journal of Liberal History 55 Summer 2007 17 L. T. Hobhouse and J. A. Hobson: The New Liberal influence on Third Way ideas

­depression caused by crop fail- His experi- distributed it would expand the had an impact on him, includ- ure and international competi- domestic market to absorb these ing Auguste Comte, John Stuart tion, particularly from Germany ence led him surpluses. He felt that the suc- Mill,7 ,8 Thomas and the United States. The cess of trade unions in secur- Malthus and Charles Darwin,9 Third Reform Act of 1884 had to believe ing higher wages and of social Prince Peter Kropotkin10 as well extended the franchise while that impe- reformers in achieving better as others like Giuseppe Mazzi- rising tariffs in other countries conditions for the lower classes ni.11 These reflect the fact that were creating structural unem- rialism was meant that eventually imperial- Hobhouse was interested in both ployment with which the social ism would be unnecessary.4 As philosophy and science – a dual- fabric was ill-equipped to deal. promoted Freeden puts it: ity that would colour his views The Social Democratic Federa- by manufac- throughout his career. As Ernest tion had been recently formed Hobson was instrumental in Barker notes, ‘Hobhouse was and unions were gaining mem- turers who reformulating liberalism and also a scientist like Kropotkin, bers; the Trades Union Congress enabling it to emerge from a studying physiology with J.S. called for an international con- benefited period of considerable self- Haldane’.12 ference of workers the following questioning and of competition However, the most com- year. Hobson was fascinated, as from war and with rival solutions to pressing monly noted influence was that well as appalled, by the condi- that if ‘sur- social and political problems, of T. H. Green. Despite the fact tions of the poor; the investi- unscathed but stronger, more that Green had died before Hob- gations carried out by Charles plus capital’ coherent and more relevant. In house arrived in Oxford, Green’s Booth and others, and the his productivity, consistency legacy was the dominance of the growing publicity surrounding and ‘surplus and range he was the leading Idealist tradition. Hobhouse is their findings, made a profound theorist of new liberalism that often considered to be a ‘disciple’ impact on him. goods’ could began to take root in the late of Green’s, and though he sym- Hobson joined a variety be more 1880s and that, gaining intel- pathised with Green’s general of social reform and politi- lectual ascendancy within a social and ethical outlook, his cal organisations in London justly distrib- generation, laid the ideologi- scientific approach meant there though the Rainbow Circle cal foundations of the modern were also significant differences. and the South London Ethical uted it would British state.5 For example, as a Hegelian Society were most important Green emphasised the ‘spiritual’ to him. Generally, Hobson was expand the and tended towards a more reli- not overly impressed. He con- domestic gious interpretation of nature, as sidered the Christian Socialists L. T. Hobhouse opposed to Darwin and Spencer ‘too sentimental’ and the Social market to The other half of the New who were arguing in favour of Democrats ‘too inflammatory’.2 Liberal ‘Gemini’ was L. T. a secularisation of science. Both Interestingly, he also ‘found the absorb these Hobhouse. He was born, the these strands were important manner and argument of H. youngest of seven children, on to Hobhouse but his morality M. Hyndman, the leader of the surpluses. 18 September 1864 in St Ives, was combined with an insist- Social Democratic Federation, near Liskeard, Cornwall, to ence on what he believed to be to be ‘those of an oily-mouthed, the Rev Reginald Hobhouse. the ‘real world’, be it science or half-educated, self-conceited A rector of fifteen years’ stand- policy. Thus, Hobhouse moved Dissenting Minister’.3 ing, Hobhouse senior was part away from Idealism and even In 1899 C. P. Scott, the edi- of the rising Victorian middle later attacked Green’s approach tor of the Manchester Guardian, class. Like Hobson, Hobhouse for not closing what he saw as invited him to join the paper as a was an Oxford graduate, from the ‘gulf’ between the ideal and reporter from South Africa dur- Corpus Christi, and also started the actual; he saw this as a flaw ing the Boer War. While there, as a teacher. A fellow at Mer- within Idealism itself. Hobson developed his ideas of ton College in 1887, he then While at Corpus, Hob- imperialism and its relation to returned to Corpus Christi in house wrote two books, The . His reputation was 1890 and was elected a Fellow (1893) and The such that when he returned to in 1894.6 It was also in 1890 that Theory of Knowledge (1896). He England in 1900, it was David he met Sidney Webb, founder became a temporary lecturer at Lloyd George who hosted his of the Fabian Society and later the London School of Econom- welcome at the National Lib- instrumental in setting up the ics in 1896 and a year later C. P. eral Club. His experience led London School of Economics. Scott, who had been elected to him to believe that imperialism It was a connection that would the House of Commons in 1895, was promoted by manufactur- last the rest of his life. invited him to join the Manches- ers who benefited from war and Hobhouse arrived at Oxford ter Guardian (in advance of the that if ‘surplus capital’ and ‘sur- during a time of intellectual invitation to Hobson). Hob- plus goods’ could be more justly upheaval. A range of thinkers house was asked to help on the

18 Journal of Liberal History 55 Summer 2007 L. T. Hobhouse and J. A. Hobson: The New Liberal influence on Third Way ideas leader-writing team but when associated in our minds with by Hobhouse – deliberately Scott was re-elected in 1900, he the work of Darwin and the placed the individual within the became a core part of the lead- impulse given by him in the context of the community. His ership. Thus, while Hobson was middle of the nineteenth cen- ideas were based on his belief writing for the paper in South tury to biological investigation. that each individual understands Africa, Hobhouse was writing As we all know, the conception and respects their links with the comment back home. of evolution is not confined to larger whole. biology, nor in biology did it originate with Darwin … In Real humanity presents a mix- The ‘’ vs. this respect the work of Darwin ture of all that is most sublime evolution and mutual aid may be said to have cut across and beautiful with all that is vil- The idea of a ‘social contract’ the normal and natural devel- est and most monstrous in that had become an underlying opment of sociological investi- world. How do they get over assumption of the Whig inter- gation. When a great impulse this? Why, they call one divine pretation of history and an is given to one science by some and the other bestial, represent- enduring part of the Liberal epoch-making experiment or ing divinity and animality as programme. The evolution of some new and fruitful gener- two poles, between which they this ‘contract’ provides a thread alisation, that science is apt to place humanity. They either through the development of acquire a certain prestige in the will not or cannot understand political ideas right through to minds of contemporaries.14 that these three terms are really the current day. Concepts of but one and that to separate duty, and responsibili- Prince is par- them is to destroy them.15 ties, and the reciprocal arrange- ticularly interesting in this ment between the individual context because, although not John Owen described the devel- and the state, are constants of often mentioned, he was a sig- opment of the debate: political debate. But it was the nificant influence on Hobhouse tension between the ‘morality’ and Hobson as well as on other The biological view presup- of the individual and the tradi- socialists at the time. Not only Kropotkin poses that survival constitutes tional perception of a need for was his work read and con- an end in itself. But if one state coercion that provided the sidered, he travelled to Lon- created, in type of social life is regarded catalyst and acted as a point of don, stayed on occasion with as inherently higher and more departure for both Hobhouse Ramsay MacDonald and even effect, an developed than another, new and Hobson in their develop- lived there for some time. He questions arise which the biol- ment of an opposing or ‘organic’ engaged with social Darwin- early type of ogist is not qualified to answer. model of society. ism, or at least its popularised communi- Fitness to survive does not con- The work of people like version, by refuting the premise stitute evidence of superiority Thomas Malthus (1766–1834) of ‘all against all’ and making tarianism, a in other respects … Hobhouse and Charles Darwin (1809–81)13 a detailed biological argument also revealed the illogicality of were challenging views as to for the survival of the species, term coined the argument that mutual aid the ‘true’ nature of the individ- not of individuals. His theo- is the great enemy of progress. ual and the community. Her- ries of ‘mutualism’ and ‘mutual in 1841. With Kropotkin, he observed bert Spencer, a strong supporter aid’ provided a new view of the ‘Mutual- that mutual aid is operative, of an atomistic view of nature, community crucial to both the even in the animal world, seized upon Darwin as scien- New Liberalism and the Third ism’ - a term and that as the level of life is tific evidence of this approach Way as a kind of halfway house ascended and the human stage to society. It was in fact, Spen- between the traditional Liberal also used by reached, mutual aid increases; cer and not Darwin who coined night-watchman state and state certainly, for example, in the the term ‘survival of the fittest’, control. However, they also put Hobhouse – parent-child relationship. Since thus tipping it towards his own Kropotkin fundamentally at deliberately the highest human values are view. odds not only with Spencer and generally supposed to be those Hobhouse viewed Darwin’s Darwin but with the Fabians, placed the involving mutual sympathy theory and surrounding com- who were focused on a much and the most highly devel- ment as just the beginning of a more rational or mechanical individual oped social life, two alterna- debate that was inevitably played top-down version of society. tives present themselves. These out in the natural sciences but, This division would continue within the valuations are either absolutely he believed, required a wider throughout the century. context false and concepts of higher response. Kropotkin created, in effect, and lower are meaningless, or an early type of communitari- of the progress does not depend on The conception of evolution is anism, a term coined in 1841. the unmitigated struggle for inseparably, and not unjustly, ‘Mutualism’ - a term also used community. existence.16

Journal of Liberal History 55 Summer 2007 19 L. T. Hobhouse and J. A. Hobson: The New Liberal influence on Third Way ideas

New Liberals and organic organism; and the contention and if such a state is to be rec- community that the State is an organism onciled to permanent progress, Hobson took up the idea of the which feels and thinks, and it is to be achieved not by the organic whole and was impressed may claim the right to express suppression of nationality, but with the theory of ‘orthogenic its feelings and thoughts.19 by the development of national evolution’.17 He used this base differentiation; not by the sup- to create a holistic approach to Hobhouse sought to re-interpret pression of political freedom, a study of human nature that the biological and evolutionary but through the spontaneous encompassed not only psychol- model for more humanitarian, movement of self-governing ogy and biology but collective aims and reclaim the communities.22 and economics as well as eth- state from a position of enforcer ics. However, as Freeden points to supporter. Like Hobson, he Building on the organic view of out, ‘Unlike Spencer … Hobson examined the whole process the community and mutual aid, drew politically radical conclu- of development and evolution Hobhouse finally created what sions from the organic analogy simultaneously but he extended he called a ‘theory of harmony’. through emphasising not the self- that organic view of liberty and If both freedom and the role of sustaining abilities of the parts justice while ensuring that he the community could be nur- but the capacity of the whole for did not lose the practical policy tured and even encouraged in self-regulation’.18 This approach or political aims in terms of the their differences as a contribu- to human nature became the role of the state and individual tion to the life of the whole, this backbone of Hobson’s work. It welfare. Owen goes on, ‘it may would produce social harmony shaped his views not only of the legitimately be claimed that despite the profusion of loyalties individual, but also of the state. Hobhouse’s thought represents such an understanding would To him, the individual was an a systematic unity in which all necessarily create: organism, but one placed within the parts play an integrated role. another organism, namely the The implication follows that no Society, and particularly civi- state, which also operated as a part can be taken out of its set- lised society, is a very com- system. Again Barker comments ting within the whole of his plex structure. We have not on this aspect of both Hobson theory if it is to be thoroughly to do with one society, the and Hobhouse: understood.’20 political community standing Hobhouse acknowledged the over against a number of indi- The development of Liberal- importance of Green’s idea of viduals who are its component ism, during the last few years, the , then worked members. Each individual is a shows considerable traces of from that base to define ‘organic’ Hobhouse member of many societies. He Fabian influence. Liberal writ- development. He argued that sought to is one of a family; he belongs ers like Prof Hobhouse and Mr while the term was over-used to a church, to a corporation, J. A. Hobson have both argued it could not be avoided, as it re-interpret to a , to a political in favour of the intervention of captured the sense that to be party. He is also a citizen of his the State in the field of socially organic the parts must depend the bio- state, and his state has a place in created values. Mr Hobson in on one another while retaining the commonwealth of states. particular has urged that the their distinct identity. Further, logical and In so far as the world becomes individual is not the only unit using the analogy of the human evolution- one, that is to say, as social rela- of economic production; that body, the parts are destroyed tions arise which interconnect the community is itself a pro- when taken from the whole. He ary model human beings all the world ducer of values; and that the extended this view to include over, Humanity becomes the State, which is the organ of the all of society and suggested for more supreme society, and all smaller community, may claim a spe- that individuals are like those social groupings may be con- cial right to impose special tax- parts in that while they may be humanitar- ceived as constituent elements ation on such values. The old taken from society they cannot ian, collec- of this supreme whole.23 individualistic view of the State thrive.21 thus seems to be definitely shed Having defined the term, he tive aims and This brings the discussion back by modern Liberalism; and Mr then applied the duality of pri- to the notion of the common Hobson, in re-stating the Lib- macy that both freedom and reclaim the good. In Hobhouse’s view, the eral case, can even enlist the community held, in his view, to common good is served by indi- conception of a social organ- the social structures around him: state from a viduals having the freedom to ism under its banner. That position of develop themselves to their full conception serves to justify These things are applicable potential, both as separate enti- the taxation of socially created to society, from the widest to enforcer to ties and within their chosen values, which are argued to be the narrowest form thereof. If communities. Individuals are the results of the growth of the there is ever to be a world state, supporter. only less of what they can be if

20 Journal of Liberal History 55 Summer 2007 L. T. Hobhouse and J. A. Hobson: The New Liberal influence on Third Way ideas taken from their community, of In essence, … After 1880 the bankruptcy of School is that in its anxiety to whatever size or at any level. the old Benthamite Liberalism enlarge and secure the free- In essence, Hobhouse and Hobhouse was beginning to be apparent. dom of the individual it was Hobson developed an approach and Hobson New ideals were needed for the not merely jealous but entirely that ‘humanised’ or ‘collectiv- new classes which had won the hostile to the activity of the ised’ the traditional atomistic developed franchise.26 State. This vulgar error may liberal view by arguing that the be referred to two main causes. state has a function in the wel- an approach The demise of the Manchester First, the work of the School fare of its citizens. This approach School was not unanticipated in the thirty years following to community, its rights and that ‘human- and not overly mourned as inter- the Reform Act was mainly a responsibilities, even to the ised’ or national tariffs were suffocating work of emancipation. The language of ‘mutualism’ and British trade. Though politicians prime necessity of progress was ‘mutual aid’, became a major ‘collectiv- had been confident that free to destroy bad laws and to free theme of the Third Way. trade was on the rise indefi- society from the chains which ised’ the nitely, the rise in manufacturing fettered moral and economic power as well as trade tariffs in development. The second Role of the state and the traditional Germany and other European cause was the action of a slow Manchester School atomistic lib- countries meant that England and rather dogmatical section The second main debate with was forced to re-examine both of wealthy adherents, who, which the New Liberals engaged eral view by its state welfare and industrial after the death of their leader was that surrounding the Man- support.27 Domestically, even [Cobden], displayed a real, chester School. This approach arguing that those who felt a sense of loyalty but narrow and unimagina- was embodied in the attitude of to these older ideas could see tive, devotion to his principles laissez-faire or ‘let things alone’, the state that a new basis had to be found by persistently marking time or ‘set things free to take their has a func- for economic development and when they should have been own course’, or ‘enlightened social legitimacy. As many Lib- pushing to the solution self-interest’, to use the phrase of tion in the erals evolved into New Liberals, of new problems.29 (1748–1832).24 they developed a new narrative, It served as the key to the indi- welfare of its which accepted that laissez-faire vidualistic model of nature and economic theory had played its concepts such as , self- citizens. part but that it was time to move ‘Old’ vs. the ‘New’ Liberalism possession and the social con- on and to develop a new under- Hobhouse’s most quoted text tract, and crucially, freedom standing of the state’s role in is Liberalism. Written in 1911, it from interference by the state. social welfare. was designed as the companion Between 1848 and 1880, as It is perhaps ironic that the book to Conservatism by Hugh Barker points out, the ‘gen- Manchester School or laissez- Cecil MP and The Socialist Move- eral tendency is towards faire ideas are believed to preclude ment by Ramsay MacDonald. ’.25 The laissez- state activity of any kind. How- The series set out to address the faire approach was the basis for ever, of this confusion in political debate at both the domestic and foreign kind requires state action to, in the time, although Hobhouse policy agendas through the belief effect, protect it from incursion. also wanted to reflect the opti- that and commerce not State action remained ‘offstage’ as mism of the government of 1906 only supported good internal Helen Merrell Lynd puts it,28 and and the reforms undertaken by practice but also promoted peace therefore the ability of the state to the combined progressive forces. among states. However, infor- act ‘for good’ was not fully rec- As Alan Grimes points out in his mation about social deprivation ognised. She also points out that 1964 introduction: was beginning to move opinion it was the shift in emphasis from away from what was perceived as preventing bad government to Liberalism was written at a time in the atomistic view of society and planning good government that English politics when there was towards more of a community brought the state out from the a fundamental division between approach. Barker goes on: wings and enabled a new kind of the old liberalism, which was philosophy to take hold. Francis defined, doctrinaire, and dying, By 1880 the doctrine of laissez- Hirst also points to this impor- and the new liberalism, which faire – the preaching of non-in- tant observation in terms of the was aspiring, amorphous, and tervention as the supreme duty move from negative freedom still largely inarticulated. On of the State, internally as well to a positive notion of state and the one hand there was a clear- as externally – seems to have government: cut body of doctrine and a passed … its doctrine of a foreign decimated ­political following; policy based on pacific cosmo- Perhaps the favourite misappre- on the other hand there was a politanism, steadily lost ground hension about the ­Manchester growing ­political movement

Journal of Liberal History 55 Summer 2007 21 L. T. Hobhouse and J. A. Hobson: The New Liberal influence on Third Way ideas

which lacked a defined social It was in Lib- ­recognised that those circum- Freedom and harmony became doctrine.30 stances had fundamentally one; he devised a ‘positive’ eralism that changed and understood the freedom that was not gained at It was in Liberalism that Hob- need for development in ideol- the expense of others but that, house set out his case that the Hobhouse ogy, but he also encouraged cau- ‘under the principle of harmony’ old Liberalism had completed its set out his tion because he felt equally that became ‘the mainspring of mission, and laissez-faire doc- there were still tasks to be done progress and cultural advance- trines were no longer required, case that that could only be dealt with by ment’ and was ultimately, ‘the but that liberalism needed a a firm notion of liberty and sense condition of mental and moral firmer philosophical base. In the old Lib- of the individual. expansion, and is the foundation that precarious balancing act, eralism had of science and philosophy, reli- he was reluctant entirely to The old Liberalism, we gion, art and morals’.35 cast off the traditions of Liberal completed thought, had done its work. In his view, New Liberalism thought and sought instead to It had been all very well in its needed to understand its differ- rehabilitate the older thinkers its mission, time, but political ences from socialist ideas and and reformulate their work in a and the rest were now well-es- liberty vs. equality seemed to more sympathetic light. Rich- and laissez- tablished facts … The old indi- be the ground on which there ard Cobden, for example, might faire doc- vidualism was standing in our would be the most distance have been left behind as one of way and we were for cutting it between progressive ideas. the mainstays of the Manches- trines were down. It was this mood … that Socialists, and particularly the ter School. However, Hobhouse disposed many people favour- Fabian strain of socialism, set notes that despite the fact that no longer ably toward imperialism as a out prepared systems for creat- Cobden was often set up as the ‘positive’ theory of the State ing equality based on the older anti-collective villain and the required, but … In this mood many men of mechanical model of human father of free trade, he also sup- that liberal- strong popular sympathies were nature. On the other hand, ported reforms in areas, such as for kicking down the ladder by Liberals such as Hobhouse felt child labour, where conditions ism needed which they had climbed to the that that approach was not only of true freedom did not apply point of vantage from which unhelpful but counter-produc- and could be said to have agreed a firmer their social reforms had been tive, because it went against that the state needed to take a possible. But apart from the what they believed to be the role in protecting children from philosophical question of gratitude, to which ‘true’ nature of the free man. 31 market forces. base. men allow no place in politics, it is well for a man to be sure The heart of Liberalism is the Rightly understood, there- that he has his feet firmly on understanding that progress fore, this kind of socialistic the top of the wall before he is not a matter of mechanical legislation appears not as an kicks the ladder aside. That the contrivance, but of the libera- infringement of the two dis- work of the old Liberalism was tion of living spiritual energy. tinctive ideals of the older Lib- done once and for all was a too Good mechanism is that which eralism, ‘Liberty and Equality’. hasty assumption.33 provides the channels wherein It appears rather as a necessary such energy can flow unim- means to their fulfilment. It The case that Hobhouse and peded, unobstructed by its comes not to destroy but to ful- others such as Herbert Samuel own exuberance of output, fil. Similar reasoning explains (1870-1963), later an MP, and vivifying the social structure, the changed attitude of Liberals D.G. Ritchie (1853–1903), were expanding and ennobling the to trade unionism.32 building was simply that old life of mind.36 liberalism had served a mis- Basically, Hobhouse argued that sion. The result was a move of However, Hobhouse also insisted the development of the mer- liberal thought towards ‘the that this liberty should not be cantilist state had shackled the thought of Mill and the politics gained at the expense of oth- individual to an aggressive and of Gladstone’. at ers. To that end he agreed that externally expansionist regime home and humanitarian foreign there was a system of rights and that had harmed individuals policy abroad were to become its responsibilities incumbent on both literally and in terms of cornerstones.34 liberty. So, even as early social- their freedom. These circum- ists were developing state mech- stances had required opposition anisms that held equality as the to fight for the rights of the indi- New Liberalism main driver, liberals were shift- vidual against the overween- Combining his notions of ing from their atomistic view of ing state and church – although harmony and the organic individuals to place them within this had resulted in a form of ­community, Hobhouse created the community – but with that negative freedom. Hobhouse a particular place for liberty. liberty came responsibilities.

22 Journal of Liberal History 55 Summer 2007 L. T. Hobhouse and J. A. Hobson: The New Liberal influence on Third Way ideas

This tension between freedom the appeal of reason, of imagi- of individuals, but was made up and equality has remained to nation, of social feeling; and of individuals as part of a com- the current day, with progres- except through the response to munity. New Liberals aimed for sive parties differing on the right this appeal there is no assured a more substantial form of equal- balance. progress of society.38 ity by creating an environment Finally, the state, in this conducive to exploring individ- organic view, was not about While Hobhouse focused on ual potential.43 coercion or control of the the old vs. new debate and aggressive individual but could questions of , be used to support the individual Hobson took on the economic Conclusion and enhance their social welfare. constructs of the ‘rational actor’ Blair’s Fabian speech was central In another echo of the wider or economic man’ as incomplete to what he believed to be the individualist/anarchist debate of descriptions of the person. He core of his Third Way project: the time and the modern debate concentrated on pointing out the possible reconciliation of as to the role of the state, Hob- the weaknesses in the capitalist the ‘progressive’ forces of Brit- house reached two conclusions. system. Working through his ish politics. The ‘progressive The first, on moral philosophi- long-standing interest in issues dilemma’ was, and remains, cal grounds, was that state coer- such as unemployment and pov- essentially how to apply this cion did not benefit man, and erty, Hobson argued that the free approach to liberty and commu- second, that obedience not to enterprise system did not oper- nity to the area of social reform. his own will but to the state’s did ate well in the longer perspective Hobhouse and Hobson are at not expand the individual’s own because it was based on a ‘false the heart of this project because morality or conscience: assumption’ that resources would they were dealing with the issues tend to be fully employed. How- upon which progressive forces Now when a man overcomes a ever, as he demonstrated, instead find that they divide: the nature bad impulse by his own sense of of fully employing available of the individual, the role there- right and wrong his will asserts resources, uncontrolled capital- fore of that individual in their itself, and it is by such assertions ism tended to create cycles of community, and subsequently of the will that personality is under-consumption and mass the role of the state in relation to developed. If by the action of unemployment. that individual in terms of sup- others he is persuaded or stim- This line of argument went port and/or control. ulated to an act of self-control, completely against the grain of The two debates outlined here if conduct is set before him in the Manchester School and the revolved around the specifics of a new light, if wider bearings classical doctrine of laissez-faire, evolution vs. mutualism and the of action are seen or dormant not least in that it supported Manchester School vs. state sup- feelings evoked … But where state intervention to correct the port but they were essentially he is merely coerced no such excesses of capitalism, both to The ‘pro- about the fundamental balance development takes place. On enhance its long-term efficiency of freedom and equality and the the contrary, so far as coercion and in its claim that the surplus gressive moral obligations of the indi- extends there is a certain moral did not belong to the capitalists vidual and the state within that pauperisation, the exertion of but to the wider population.39 dilemma’ balance. will is rendered unnecessary Also core to this view of was, and The New Liberals, and Hob- and is atrophied.37 the state was that it became house and Hobson in particu- the ‘prime ethical agent of the remains, lar, sought to create effectively The state, looked at from this community’.40 A ‘benevo- a new ‘social contract’ between new perspective, can be an lent’ and ‘impartial’ state was essentially the individual and the state. instrument of social justice required if it was to be handed However, theirs was not based rather than one of social control. more power in the form of a how to on the ‘negative’ freedom that Society can be based on the ‘self- more collectivist vision of soci- had prevailed but on an under- directing power of personality’, ety, but would nevertheless still apply this standing of the individual in and liberty – the crucial fac- safeguard the ends of both soci- approach to light of scientific advance as well tors for Hobhouse – becomes a ety and the individual.41 as economic reality. Theirs was necessity instead of a luxury: Hobson was suggesting that liberty and a systems model in which each the New Liberalism was a kind player was both a system in their Liberty then becomes not so of ‘socialism in liberalism’.42 community own right and, together with much a right of the individual Their vision looked more like a to the area others, formed new and differ- as a necessity of society … and called for the ent systems. The issue was then The rule of liberty is just the state to provide at least the basic of social about the balance of freedom. ­application of rational method. necessities. They argued society Today, while Darwin and It is the opening of the door to was more than just a collection reform. Kropotkin sound dated and ideas

Journal of Liberal History 55 Summer 2007 23 L. T. Hobhouse and J. A. Hobson: The New Liberal influence on Third Way ideas such as laissez-faire and Man- can be any development of polit- Sons, 1974), p. 11; Ernest Barker, chester School are far behind ical thought. Political Thought in England 1848 to us in terms of economic theory, 1914 (London: Thornton Butter- the underlying political debates Dr Alison Holmes is a Postdoctoral worth, 1930), p. 4. remain much the same. For the Fellow at the Rothermere Ameri- 11 Hobhouse, Liberalism. Third Way the economic reali- can Institute at Oxford University. 12 Ibid., p. 11; Barker, Political Thought ties of globalisation and the role She received her doctorate in Inter- in England, p. 4. of the state in the international national Relations from the London 13 Ian Adams, Political Ideology Today environment bring us back to School of Economics in 2005 entitled, (Manchester: Manchester Univer- the state’s role in protecting its ‘The Third Way and New Liberal- sity Press, 1993), pp. 45–46. citizens against the deprivation ism – responding to globalisation at 14 Hobhouse, Social Evolution and Polit- caused by external trends, while the domestic/international frontier’. ical Theory, pp. 17–18. Blair’s promotion of both rights She previously held roles in politics, 15 Marshall S. Shatz (ed)., The Essen- and responsibilities within the communications and business. tial Works of (New York: community are direct descend- Bantam Books, 1971), p. 137. ents of the debates around the 1 Tony Blair, Let Us Face the Future 16 Owen, L.T. Hobhouse, Sociologist, p. common good, ‘mutualism’ and – the 1945 anniversary lecture (Fabian 124. the ‘theory of harmony’. Pamphlet 571; The Fabian Society, 17 Allett, The New Liberalism The Polit- The progressive forces of London, 1995), pp. 4, 8, 11; Tony ical Economy of J.A. Hobson, p. 20. British politics remain divided Blair, New Britain: My Vision of a 18 Ibid. because they disagreed then and Young Country (London: Fourth 19 Barker, Political Thought in England continue to disagree today. As Estate, 1996), p. 15. 1848 to 1914, p. 222. David Marquand points out: 2 John Allett, New Liberalism: The 20 Owen, L.T. Hobhouse, Sociologist, p. 5. Political Economy of J.A. Hobson 21 Ibid. The New Liberals of the turn of (Toronto: University of Toronto 22 Hobhouse, Social Evolution and Polit- the century sought to reconcile Press, 1981), pp. 7–8. ical Theory, pp. 90–91. capital and labour, to moralise 3 Ibid. 23 Ibid., p. 88. market relations, to achieve a 4 Bernard Semmel, The Rise of Free 24 H. M. Croome and R.J. Hammond, just distribution of resources Trade Imperialism: Classical Political An Economic History of Britain (Lon- within a capitalist framework. Economy the Empire of Free Trade and don: Christophers, 1938), p. 129. Their project was based on the Imperialism 1750–1850 (Cambridge: 25 Barker, Political Thought in England, premise that this attempt was Cambridge University Press, 1970); p. 19. feasible as well as right, that James E. Dougherty and Robert L. 26 Ibid., pp. 20, 22, 208. capitalism was sufficiently flex- Pfaltzgraff Jr.,Contending Theories of 27 W. Cunningham, The Progress of ible and productive for it to be International Relations (New York: Capitalism in England (Cambridge: reformed in such a way.44 Harper Collins, 1990). Cambridge University Press, 1916); 5 Michael Freeden (ed.), J.A. Hobson: William Harbutt Dawson, Protection He goes on to argue that the A Reader (London: Unwin Hyman, in Germany: A History of German Fis- idea that liberalism can be rec- 1988), p. 10. cal Policy during the nineteenth century onciled with socialism may 6 Ernest Barker, ‘Leonard Trelawny (London: P.S. King & Son, 1904); be simply incorrect. In his Hobhouse 1864–1929’, Proceedings George W. Southgate, English Eco- view, the basic problem is: ‘If of the British Academy, Volume XV The progres- nomic History (London: J. M. Dent socialism was right, New Lib- (London: H. Milford [1931?]); L. and Sons Ltd, 1962). eralism was wrong; if New T. Hobhouse, Liberalism (Oxford: sive forces of 28 Helen Merrell Lynd, England in the Liberalism was right, socialism Oxford University Press, 1964 1880s: Toward a Social Basis for Free- was unnecessary.’45 This rather (original publication 1911)); J. A. British poli- dom (London: Oxford University depressing conclusion does not, Hobson and Morris Ginsberg, L.T. Press, 1945), p. 426. however, capture the essence Hobhouse: His Life and Work (Lon- tics remain 29 Francis W. Hirst (ed.), Free Trade and of what could be said to be the don: Routledge/ Thoemmes Press, divided Other Fundamental Doctrines of the real point behind Hobhouse 1993). Manchester School (London: Harper and Hobson’s approach. For the 7 Barker, ‘Leonard Trelawny Hob- because they & Brothers, 1903), pp. xi–xii. New Liberals the foundation house’, p. 13; Hobson and Ginsberg, 30 Hobhouse, Liberalism. was indeed freedom but rational L.T. Hobhouse, p. 100; Hobhouse, disagreed 31 L. T. Hobhouse, Democracy and thought was its tool. Thus, it is Liberalism, p. 2. Reaction (London: T. Fisher Unwin, suggested here that this continu- 8 Barker, ibid. then and 1909). ous process of debate between 9 L. T. Hobhouse, Social Evolution and continue 32 Ibid., p. 219. progressive forces will not result Political Theory (New York: Colum- 33 Ibid., p. 212. in proof of ‘right’ or ‘wrong’ but bia University Press, 1922). to disagree 34 Owen, L.T. Hobhouse, Sociologist. that it is only through discussion 10 John E. Owen, L.T. Hobhouse, Soci- 35 Ibid., p. 117. of these timeless issues that there ologist (London: Thomas ­Nelson and today. Concluded on page 48

24 Journal of Liberal History 55 Summer 2007 A Liberal Democrat History Group fringe meeting in search of the great liberals H. H. Asquith, , Violet Bonham Carter, Henry Campbell-Bannerman, , Millicent Garrett Fawcett, Charles James Fox, W. E. Gladstone, Jo Grimond, , J. M. Keynes, , , , Lord John Russell – or someone else: who was the greatest Liberal?

Based on the votes cast by Journal readers (see pages 4–12), four candidates will be presented at this meeting. Leading politicians and historians will make the case for each one of the four, and Journal readers and conference participants will be able to vote for the final choice of the greatest Liberal.

20.00, Wednesday 19 September 2007 Forest Room, Quality Hotel, Brighton

came, he was out-manoeu- on Brougham’s belief in the L. T. Hobhouse and J. A. Hobson: The New Liberal vred into a cabinet backwater importance of extra-parlia- influence on Third Way ideas (continued from page 24) – being made Lord Chan- mentary pressure, but does cellor, so that his mercurial not give his achievements in 36 Hobhouse, Liberalism, p. 73. an article for the Nation in 1907, talents could not be deployed this area anywhere near the 37 L. T. Hobhouse, The Elements of reprinted in The Crisis of Liber- against the government, but same weight as Hay. Social Justice (London: George alism and later used by Ramsay without him gaining much Although Aspinall Allen & Unwin, 1922), p. 67. MacDonald. power. He used his time in explicitly decries any notion 38 Hobhouse, Liberalism, p. 66. 43 Ibid.; Freeden, J.A. Hobson: A the post to introduce some of his book being a biogra- 39 Allett, New Liberalism, pp. Reader. important legal reforms, but phy of Brougham, writing 259–60. 44 David Marquand, The New his political career fizzled out instead that it is an account 40 Freeden, J.A. Hobson: A Reader, Reckoning: Capitalism, States and and when he lost the position of his career as a politician, p. 12. Citizens (Cambridge: Polity a few years later he then had a Brougham the person – the 41 Ibid. Press, 1997), pp. 74–75. long period in retirement. bombastic, outspoken, 42 A phrase he used as the title of 45 Ibid. Given the date of Aspi- self-confident Brougham nall’s book it is no surprise – comes through clearly in that it follows the traditional what is a clearly-written and picture of Brougham as a enjoyable read. For book highly talented and some- lovers, the good news is that Corrections what mercurial person the book itself has traditional Unfortunately the gremlins were at work on issues 53 and 54 of the whose contribution to the good production qualities, Journal. Our apologies to all readers, and the relevant authors. Whigs, whilst positive, was with a decent spine, good In Journal 53, the lower cartoon on page 8, accompanying Patrick limited by lack of trust and quality paper, a meaningful Jackson’s article ‘Gladstone and the Conservative Collapse’, was not teamwork. In this (and really index and, if not footnotes of John Morley, but of Joseph Chamberlain. only this) respect the book on each page, at least chapter Also in Journal 53, the introduction to the article on ‘Beveridge in has dated somewhat, with endnotes. Person’ on pages 37–38 gives the impression that Ivor Davies wrote it; the more recent William in fact it was written by his son, John Davies. Also, our software failed Hay book, The Whig Revival Dr Mark Pack completed a PhD to reproduce Greek letters in the title of the Butler sonnet used by (2005) emphasising his posi- on nineteenth-century English Beveridge, though the English translation is given accurately. tive contribution in build- elections, and now works in the In Journal 54, a printer’s error (not an editorial fault this time!) meant ing the party around the Liberal Democrats’ Campaigns that page 63 failed to print correctly; several lines were omitted. A country. Aspinall touches Department. corrected version of page 63 is included with this issue.