Classical Liberals often remind me of Marxists... and it struck home in this article reflecting on Thatcher
Indeed, even beyond the political left, the Anglo-American model of capitalism is deemed to have failed. It is held culpable for the near financial meltdown. But 30 years of hindsight enable us to judge which elements of the Thatcher revolution should be preserved, and which should be amended in the light of today's global economic downturn.
Most obviously in need of amendment is the view that minimally managed and regulated markets are both more stable and more dynamic than those subject to extensive government intervention. The Thatcherite assumption, in other words, was that government failure is far more menacing to prosperity than market failure.
This was always bad history. The record shows that the period 1950-73, when government intervention in market economies was at its peacetime height, was uniquely successful economically, with no global recessions and faster rates of GDP growth ― and growth of GDP per capita ― than in any comparable period before or since.
One can argue that economic performance would have been even better with less government intervention. But perfect markets are no more available than perfect governments. All we have are comparisons between what happened at different times. What these comparisons show is that markets plus government have done better than markets minus government.
Classical Liberals claim "perfect markets" can exist and claim that "perfect governments" are possible. Neither are true--blinded by the youthful energy of the Enlightenment. Therefore they fail to provide actual policy--instead they provide ideology disguised in economic language using Liberty as the bully pulpit if one is so inclined to start asking follow up questions. Its why they remind me of Marxists.. they sound to themselves and others as if they are talking about the real world--yet scratch the surface and you find they are just lost in abstract theory that has no bearing on how the world actually works. Don't get me wrong, theories are useful. But its like thinking the scientific method proves something to be true with 100% certainty--rather than just a useful tool for analysis.
Modern Classical Liberals replace Marx with Locke, Jefferson, et. al yet refuse to put multinational corporations and other gems of the industrial captialist system into the equation.
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