*Gary Gerstle* # Progressive Summary # Definitions Neoliberal order - grounded in the belief that market forces had to be liberated from government regulatory controls that were inhibiting growth, innovation and freedom New Deal order - founded on the idea of a strong central state able to govern the economic system in the public interest political order - a constellation of ideologies, policies, and constituencies that shape American politics in ways that endure election cycles # Chapter Notes ## Introduction In the last hundred years, America has had two political orders: - New Deal order: arose in the 1930s and 1940s, crested in the 1950s and 1960s, and fell in the 1970s (precipitated by Stagflation) - Neoliberal order: arose in the 1970s and 1980s, crested in the 1990s and 2000s, and fell in the 2010s (precipitated by the Great Recession of 2008-2009) Political orders are complex projects that require advances on broad fronts. They also allow the ideologically dominant party to bend opposition parties to its will. For example, Eisenhower's Republican party acquiesced to New Deal principles in the 1950s, and Clinton's Democrat party accepted Neoliberal principles in the 1990s. ### Neoliberalism Neoliberalism is a descendant of 18th century classical liberalism, which believed in liberating markets from various encumbrances: monarchy, mercantilism, bureaucracy, artificial borders and tariffs. Its emotional appeal comes from the rhetoric of freedom and emancipation, which is why it appeals to a broad audience across social scales. Reagan's version of freedom required the mass incarceration of blacks, who were perceived as neither capable nor deserving of participation in the market economy he was trying to create. ## 3 - Beginnings Neoliberalism was not the first variant of classical liberalism that emerged. That claim goes to New Deal liberalism, which claimed to chart a middle ground between laissez faire and collectivism. Laissez faire was broadly perceived to have failed as an economic system after the First World War. The advocates of neoliberalism claimed to have found an even better middle path than the New Deal. Neoliberalism can thus be seen as part of a longer arc that traces back to the beginning of classical liberalism itself. Liberty became an important word in American revolutionary discourse ever since the Declaration of Independence was signed in Philadelphia on July 4, 1776. It stated that "all men are created equal and endowed by their creator with unalienable rights to life, liberty, and pursuit of happiness." Liberty in this context meant a determination to limit government and maximise individual freedom. The US constitution was ratified in 1789, enshrining the fragmentation of the central government into three branches – the executive, the legislative, and the judicial – thus preventing any one of them from reproducing the tyranny of George III. ### Liberalism was an 18th century revolution The first 10 amendments adopted in 1791 elaborated further on a set of individual rights. These became the Bill of Rights, which spoke to the political dimension of freed. In 1776, Adam Smith published his Wealth of Nations, which provided the philosophical backbone for America's approach to economic freedom. There was a cultural dimension to freedom, which emphasised individuality. This was about nurturing an individual's potential through education, and letting go of superstition and unquestioned tradition. Together, liberalism's approach to political, economic, and cultural freedom was completely revolutionary, changing every aspect of 18th-century life. > [!NOTE] Comment > This seems a lot like Rudolf Steiner's three-fold social order. ### Liberalism in the 19th century In America, liberalism led to the emergence of the Republican Party, which called for the abolition of slavery. There were campaigns for the emancipation of women, and the French gave America the Statue of Liberty to honour Lincoln for freeing the slaves. In Britain, the Liberal Party rose out of the Whigs, who stood against monarchy and Catholic rule. The Liberal Party promoted free trade and working class rights. JS Mill published *On Liberty*. In France, liberalism was dealt a blow by Napoleon Bonaparte, who made him emperor in 1852. However, he was defeated in 1870, and France finally got its Third Republic. ### Classical liberalism's contradictions America's original constitution had permitted slavery. The Civil War ended this, and led to constitutional amendments. But there was a conservative backlash in which white southerners subjected blacks to new regimes of control. They claimed that blacks did not know how to use their freedom responsibily, and were prone to corruption, laziness and lusting after white women. Working class Americans also felt betrayed after a series of financial crises and job losses, which caused them to turn to more radical ideas like socialism. Many liberals in the US and England began to fear the left as a source of anarchy, preferring order over freedom. They also took an imperialist turn, seeking to bring enlightenment to benighted peoples abroad, such as in Rhodesia and the Philippines. ### Teddy Roosevelt, Wilson and FDR as progressive liberals In 1910, Theodore Roosevelt gave a speech at Osawatomie, Kansas, in which he said, "The man who wrongly holds that every human right is secondary to his profit, must now give way to the advocate of human welfare, who rightly maintains that every man holds his property subject to the general right of the community to regulate its use to whatever degree the public welfare may require it." In 1917, Wilson became the first president to use the term "liberal" to describe this view. But since it contradicted classical liberalism, many began using the word "progressive" to describe this new philosophy. FDR was Teddy Roosevelt's cousin. He also served as Wilson's assistant secretary of the Navy during World War I. The Great Depression launched his political career as a Democratic Party candidate, and he became the first president to win a third time. He used his popularity to lay a decisive claim to the term "liberal" to describe his New Deal politics. Teddy Roosevelt was vice-president when William McKinley was assasinated by an anarchist. Woodrow Wilson considered Lenin as his chief international rival. FDR was challenged by radicals. All three of them tried to look for a third way between the collectivism of the left and the laissez-faire ways of the right. Teddy Roosevelt and Woodrow Wilson were also racists to the bone, excluding people of colour from their liberal politics. At the 1919 Paris Peace conference, Wilson denied non-white peoples living outside of Europe the right to self-determination and self governance. ### Challenges to New Deal liberalism Herbert Hoover challenged FDR, calling himself the real heir to classical liberalism. He claimed that FDR's New Deal would hasten the arrival of socialism, bringing America closer to Soviet Russia and Nazi Germany. Walter Lippmann was a 20th-century journalist and cultural critic. ### Neoliberals had to adopt conservative label to distinguish themselves Traditional conservative values are about continuity, embeddedness, stabilty, order and hierarchy. Whereas neoliberals are about dynamism, innovation, disruption, freedom of the individual. But the New Deal left had laid claim to the word "liberal", so the right had to find a different term. Friedman and Hayek never liked to be called "conservative". Friedman thought that a real liberal was radical. ## 4 - Ascent # Quotes # References