Two years before the Labour Party victory of 1997, Tony Blair made a seminal speech L. T. HOBHOUSE AND J. A. HOBSON: to the Fabian Society in celebration of the fiftieth anniversary ThE NEW LIBERAL INFLUENCE ON ThiRD WAY idEAS of the 1945 Labour election victory. The speech was a major media event because it was a defining moment for New Labour ‘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 socialism 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- freedom, even if it infringed the modern interpretation of the stones of both New traditional laissez-faire liberal Third Way. BLiberalism 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- liberty as too thin for the pur- evolution of what was called the sive discussion group known poses of social and economic New Liberalism. 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 Herbert Spencer,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 welfare 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 capitalism. His reputation was 1890 and was elected a Fellow Labour Movement (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.