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Part of the book series: Palgrave Studies in Classical Liberalism ((PASTCL))

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Abstract

The liberal tradition has come a long way since it regarded the poor as a mere inconvenience for the rich, such that practices of poor relief were set to avoid a certain discomfort for the well-off rather than to help the worst-off. One exception remains, or so it is commonly believed, namely the classical liberal tradition. This tradition, for example defended by Friedrich Hayek or Milton Friedman, is generally thought to be hostile to social justice. The introduction to this book undoes this incorrect yet far too common reading of classical liberalism. There is an egalitarian tilt to classical liberalism that is unfortunately too often ignored or misunderstood. Inasmuch as one is a classical liberal, one should also be an egalitarian of a certain kind.

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Notes

  1. 1.

    Sir Matthew Hale, A Discourse Touching Provision for the Poor, London, H. Hills, 1683, pp. 5, 7.

  2. 2.

    James Buchanan, “The Fiscal Crises in Welfare Democracies: With Some Implications for Public Investment”, in Hirofumi Shibata and Toshihiro Ihori (eds.), The Welfare State, Public Investment, and Growth, Tokyo, Springer, 1998, p. 5.

  3. 3.

    E. Mack and G. Gaus, “Classical Liberalism and Libertarianism: The Liberty Tradition”, in G. Gaus and Chandran Kukathas (eds.), Handbook of Political Theory, London, Sage, 2004, pp. 115–130.

  4. 4.

    Joseph Schumpeter, History of Economic Analysis, Oxford, Oxford U. Press, 1954, p. 395.

  5. 5.

    Friedrich Hayek, The Constitution of Liberty, Chicago, U. of Chicago Press, 1978, p. 408.

  6. 6.

    Moreover, “libertarianism is not a moral philosophy; it is a political philosophy that rests upon certain moral conclusions that can be supported in a variety of ways.” Randy Barnett, “Is the Constitution Libertarian?”, Cato Supreme Court Review, 2008–2009, pp. 9–33. See also, on Lockean premises, R. Barnett, The Structure of Liberty, Oxford, Oxford U. Press, 2014, pp. 63ff.

  7. 7.

    Robert Nozick, Anarchy, State, and Utopia, New York, Basic Books, 1974, p. 169.

  8. 8.

    Murray Rothbard, For a New Liberty: The Libertarian Manifesto, New York, Collier Books, 1978, p. 147.

  9. 9.

    Jan Narveson, The Libertarian Idea, Peterborough, Broadview Press, 2001, p. 241.

  10. 10.

    David Hume, A Treatise of Human Nature, III.ii.2, New York, Dover, 2003, p. 349.

  11. 11.

    Richard Epstein, “One Step Beyond Nozick’s Minimal State: The Role of Forced Exchanges in Political Theory”, Social Philosophy and Policy, Vol. 22, No. 1, 2005, p. 287.

  12. 12.

    Loren Lomasky, “Libertarianism as If (The Other 99 Percent of) People Mattered”, Social Philosophy and Policy, Vol. 15, No. 2, 1998, pp. 362–364. See also, Colin Farrelly, “Taxation and Distributive Justice”, Political Studies Review, Vol. 2, No. 2, 2004, pp. 185–197, showing how rights are not “priceless”.

  13. 13.

    Lucas v. South Carolina Coastal Council, 505 U.S. 1003 (1992).

  14. 14.

    Jan Narveson, The Libertarian Idea, Peterborough, Broadview Press, 2001, p. 187.

  15. 15.

    By “markets,” in this book, I do not mean perfectly competitive markets. We know from the theorem of second best that given any deviation from perfect competition it is an open question whether “more market,” in the sense of more competition, indeed promotes welfare.

  16. 16.

    John Rawls, A Theory of Justice, Oxford, Oxford University Press, 1999, pp. 386–391.

  17. 17.

    Richard Epstein, “Can Anyone Beat the Flat Tax?”, Social Philosophy and Policy, Vol. 19, No. 1, 2002, p. 145.

  18. 18.

    Friedrich Hayek, “The Use of Knowledge in Society”, The American Economic Review, Vol. 35, No. 4, 1945, p. 520.

  19. 19.

    R. Epstein, Simple Rules for a Complex World, Cambridge, Harvard U. Press, 1993, p. 72.

  20. 20.

    Gerald A. Cohen, Self-Ownership, Freedom, and Equality, Cambridge, Cambridge University Press, 1995, p. 260.

  21. 21.

    Milton Friedman, Capitalism and Freedom, Chicago, University of Chicago Press, 2002, p. 15. Friedman added the following important qualification—“The existence of a free market does not of course eliminate the need for government. On the contrary, government is essential both as a forum for determining the ‘rules of the game’ and as an umpire to interpret and enforce the rules decided on.”

  22. 22.

    E. Mack and G. Gaus, “Classical Liberalism and Libertarianism: The Liberty Tradition”, in G. Gaus and C. Kukathas (eds.), Handbook of Political Theory, London, Sage, 2004, pp. 115–130.

  23. 23.

    A recent example of such an attempt can be found in, Dan Moller, Governing Least: A New England Libertarianism, New York, Oxford University Press, 2019, 326 pp.

  24. 24.

    Lionel Robbins, The Theory of Economic Policy in English Classical Political Economy, London, Macmillan, 1952, pp. 34ff. Joseph Schumpeter, Capitalism, Socialism, and Democracy, New York, Harper & Brothers, 1942, p. 75. Frank H. Knight, “The Ethics of Competition”, Quarterly Journal of Economics, Vol. 37, No. 4, 1923, p. 587. See also, Denis P. O’Brien, The Classical Economists Revisited, Princeton, Princeton University Press, 2004, p. 361. John Gray, Liberalism, Minneapolis, University of Minnesota Press, 1995, p. 27.

  25. 25.

    Aaron Director, “The Parity of the Economic Market Place”, The Journal of Law and Economics, Vol. 7, 1964, p. 2. See also, Jacob Viner, “The Intellectual History of Laissez Faire”, The Journal of Law and Economics, Vol. 3, 1960, pp. 45–69, as well as Frank H. Knight, “Laissez Faire: Pro and Con”, Journal of Political Economy, Vol. 75, No. 6, 1967, pp. 782–795.

  26. 26.

    Bernard Mandeville, The Fable of the Bees, London, Penguin Classics, 1989, p. 76.

  27. 27.

    Aristotle, Nicomachean Ethics, 1131b–1132b, translated by R. Bartlett and S. Collins, Chicago, Chicago University Press, 2011, pp. 96–99. Ludwig von Mises, Human Action: A Treatise on Economics, Auburn, L. von Mises Institute, 1998, p. 3. Robert Nozick, Anarchy, State, and Utopia, New York, Basic Books, 1974, p. 151.

  28. 28.

    Jason Brennan and John Tomasi, “Classical Liberalism”, in David Estlund (ed.), Oxford Handbook of Political Philosophy, New York, Oxford University Press, 2012, pp. 115–132. Jacob T. Levy, “Social Injustice and Spontaneous Orders”, The Independent Review, Vol. 24, No. 1, 2019, pp. 49–62.

  29. 29.

    Friedrich Hayek, Law, Legislation and Liberty, London, Routledge, 2013, pp. xix, 135.

  30. 30.

    Ludwig von Mises, Planning For Freedom, South Holland, Libertarian Press, 1974, p. 28.

  31. 31.

    M. Friedman, Capitalism and Freedom, Chicago, U. of Chicago Press, 2002, p. 182.

  32. 32.

    See, for example, Steven Lukes, “Social Justice: The Hayekian Challenge”, Critical Review, Vol. 11, No. 1, 1997, pp. 65–80. David Johnston, “Is the Idea of Social Justice Meaningful?”, Critical Review, Vol. 11, No. 4, 1997, pp. 607–614. D. Johnston, “Hayek’s Attack on Social Justice”, Critical Review, Vol. 11, No. 1, 1997, pp. 81–100. For a reply, see Edward Feser, “Hayek, Social Justice, and the Market: Reply to Johnston”, Critical Review, Vol. 12, No. 3, 1998, pp. 269–281. Edward Feser, “Hayek on Social Justice: Reply to Lukes and Johnston”, Critical Review, Vol. 11, No. 4, 1997, pp. 581–606.

  33. 33.

    Andrew Lister, “The ‘Mirage’ of Social Justice”, Critical Review, Vol. 25, Nos. 3–4, 2013, pp. 409, 422ff.

  34. 34.

    M. Friedman, Capitalism and Freedom, Chicago, U. of Chicago Press, 2002, p. 176.

  35. 35.

    Samuel Freeman, Rawls, New York, Routledge, 2007, p. 45.

  36. 36.

    John Rawls, Lectures on the History of Moral Philosophy, Cambridge, Harvard University Press, 2000, p. 366. Samuel Freeman, “Capitalism in the Classical and High Liberal Traditions”, Social Philosophy and Policy, Vol. 28, No. 2, 2011, p. 23n. John Gray, Hayek on Liberty, Oxford, Basil Blackwell, 1984, pp. 59f.

  37. 37.

    John Tomasi, Free Market Fairness, Princeton, Princeton University Press, 2012, p. 95.

  38. 38.

    John Tomasi, Free Market Fairness, Princeton, Princeton University Press, 2012, p. xv.

  39. 39.

    Milton Friedman once used the term to refer to classical liberals of the Chicago school, like Henry Simons, who argue for some social justice beyond private charity. Milton Friedman, “Neoliberalism and Its Prospect”, originally published in Norwegian, “Nyliberalismen og dens Muligheter”, Farmand: Norsk Forretningsblad, Vol. 57, No. 7, 1951, pp. 89–93.

  40. 40.

    A. Giddens, The Third Way: The Renewal of Social Democracy, Cambridge, Polity Press, 1998, pp. 8–14.

  41. 41.

    D. Joseph Stiglitz, “Moving Beyond Market Fundamentalism to a More Balanced Economy”, Annals of Public and Cooperative Economics, Vol. 80, No. 3, 2009, pp. 345–360.

  42. 42.

    According to Peter Boettke, for example, those critiques of so-called neoliberals “are actually not that challenging to a serious student of Hayek’s work; they are, instead, musings of ideological ax-grinders who appeal to those who already believe as they do.” P. Boettke, F.A. Hayek: Economics, Political Economy and Social Philosophy, London, Palgrave Macmillan, 2019, p. 1.

  43. 43.

    Harry B. Acton, The Morals of Markets and Related Essays, Indianapolis, Liberty Press, 1993, p. 116.

  44. 44.

    Deborah Boucoyannis, “The Equalizing Hand: Why Adam Smith Thought the Market Should Produce Wealth Without Steep Inequality”, Perspectives on Politics, Vol. 11, No. 4, 2013, pp. 1051–1070. Jeremy Bentham, “Means of Uniting Security and Equality”, Principles of the Civil Code, I.xii, in Theory of Legislation, London, Trübner & Co., 1876, pp. 122f.

  45. 45.

    Lanny Ebenstein, Chicagonomics, New York, St. Martin’s Press, 2015, p. 10.

  46. 46.

    Lanny Ebenstein, Chicagonomics, New York, St. Martin’s Press, 2015, p. 11.

  47. 47.

    See, for example, Eric Mack, “Hayek on Justice and the Order of Actions”, in Edward Feser (ed.), Cambridge Companion to Hayek, Cambridge, Cambridge University Press, 2006, pp. 259–286. See also, Loren Lomasky, “A Refutation of Utilitarianism”, Journal of Value Inquiry, Vol. 17, No. 4, 1983, pp. 259–279.

  48. 48.

    M. Friedman, quoted in M. Albert, Life After Capitalism, London, Verso, 2003, p. 77.

  49. 49.

    J. Narveson, “Egalitarianism: Partial, Counterproductive, and Baseless”, Ratio, Vol. 10, 1997, p. 283. Jacob T. Levy, “Political Libertarianism”, in M. Todd Henderson (ed.), The Cambridge Handbook of Classical Liberal Thought, Cambridge, Cambridge University Press, 2018, p. 168.

  50. 50.

    G. Gaus, The Order of Public Reason, Cambridge, Cambridge U. Press, 2011, 621 pp.

  51. 51.

    Derek Parfit, “Equality and Priority”, Ratio, Vol. 10, No. 3, 1997, p. 213. See also, Martin O’Neill, “What Should Egalitarians Believe?”, Philosophy & Public Affairs, Vol. 36, No. 2, 2008, pp. 119–156.

  52. 52.

    Harry Frankfurt, “Equality as a Moral Ideal”, Ethics, Vol. 98, No. 1, 1987, pp. 21–43.

  53. 53.

    Loren Lomasky, Persons, Rights, and the Moral Community, Oxford, Oxford University Press, 1987, p. 128.

  54. 54.

    F. Hayek, The Constitution of Liberty, Chicago, U. of Chicago Press, 1978, p. 254.

  55. 55.

    L. von Mises, The Free and Prosperous Commonwealth, Princeton, Nostrand, 1962, p. 79.

  56. 56.

    Richard Epstein, “Judicial Review: Reckoning on Two Kinds of Error”, Cato Journal, Vol. 4, No. 3, 1985, p. 14.

  57. 57.

    M. Friedman, Capitalism and Freedom, Chicago, U. of Chicago Press, 2002, p. 195.

  58. 58.

    Friedrich Hayek, Law, Legislation and Liberty, London, Routledge, 2013, p. 249.

  59. 59.

    Milton Friedman, Capitalism and Freedom, Chicago, University of Chicago Press, 2002, pp. 167, 176, 192.

  60. 60.

    Eric Mack and Gerald Gaus, “Classical Liberalism and Libertarianism: The Liberty Tradition”, in G. Gaus and C. Kukathas (eds.), Handbook of Political Theory, London, Sage, 2004, p. 125.

  61. 61.

    “We live together,” said Buchanan, “because social organization provides the efficient means of achieving our individual objectives and not because society offers us a means of arriving at some transcendental common bliss.” James Buchanan, The Limits of Liberty: Between Anarchy and Leviathan, Indianapolis, Liberty Fund, 2000, p. 3.

  62. 62.

    Jan Narveson, “Egalitarianism: Partial, Counterproductive, and Baseless”, Ratio, Vol. 10, 1997, p. 284.

  63. 63.

    Gerald A. Cohen, Self-Ownership, Freedom, and Equality, Cambridge, Cambridge University Press, 1995, pp. 260f.

  64. 64.

    F. Hayek, “The Use of Knowledge in Society”, The American Economic Review, Vol. 35, No. 4, 1945, pp. 519–530.

  65. 65.

    For a defense of contractarianism, see Richard Epstein, “One Step Beyond Nozick’s Minimal State: The Role of Forced Exchanges in Political Theory”, Social Philosophy and Policy, Vol. 22, No. 1, 2005, p. 304.

  66. 66.

    Gerald Gaus, “Hayekian ‘Classical’ Liberalism”, in Jason Brennan, Bas van der Vossen, David Schmidtz (eds.), The Routledge Handbook of Libertarianism, London, Routledge, 2017, pp. 39ff.

  67. 67.

    James Buchanan, Why I, Too, Am Not a Conservative, Edward Elgar, 2005, p. 75. See also, G. Brennan and J. Buchanan, The Reason of Rules, Indianapolis, Liberty Fund, 2000, p. 13.

  68. 68.

    For a critique of a different kind of contractarianism, see Jacob T. Levy, “Not So Novus an Ordo: Constitutions Without Social Contracts”, Political Theory, Vol. 37, No. 2, 2009, pp. 191–217. I agree with Jacob Levy, on page 192, that, “Contractarian blinders lead us to look for greater individualism, greater social unity, and greater coherence of principles than can actually be expected of constitutions or constitutionalism.” But rule egalitarianism defends a more modest, or realist, contractarianism than the one he criticizes.

  69. 69.

    Friedrich Hayek, “The Errors of Constructivism”, in New Studies in Philosophy, Politics, Economics and the History of Ideas, London, Routledge & Kegan Paul, 1985, p. 3.

  70. 70.

    James Buchanan, Why I, Too, Am Not a Conservative, Edward Elgar, 2005, p. 20. Similarly, Jeremy Waldron talked about Hayek’s “antipathy to legislation”. Jeremy Waldron, The Rule of Law and the Measure of Property, 63rd Hamlyn Lectures, Cambridge, Cambridge University Press, 2012, p. 89. However, I disagree with this characterization of Hayek’s theory. We must not mistakenly bundle Hayek’s methodological concern about the concept of “legislation” with a substantive rejection of the said concept.

  71. 71.

    Friedrich Hayek, “The Errors of Constructivism”, in New Studies in Philosophy, Politics, Economics and the History of Ideas, London, Routledge & Kegan Paul, 1985, pp. 8f. See also, Friedrich Hayek, Law, Legislation and Liberty, London, Routledge, 2013, pp. 90ff and 118ff.

  72. 72.

    James Buchanan, “Hayek and the Forces of History”, Humane Studies Review, Vol. 6, No. 2, 1989, p. 3. See also, Frank H. Knight, “Abstract Economics as Absolute Ethics”, Ethics, Vol. 76, No. 3, 1966, p. 175.

  73. 73.

    Friedrich Hayek, Law, Legislation and Liberty, London, Routledge, 2013, p. 29. See also, Suri Ratnapala, “The Jurisprudence of Hayek”, in Oliver Hartwich (ed.), The Multi-Layered Hayek, Sydney, Centre for Independent Studies, 2010, p. 49.

  74. 74.

    John Tomasi, Free Market Fairness, Princeton, Princeton University Press, 2012, p. xv.

  75. 75.

    Jacob Viner, “Hayek on Freedom and Coercion”, Southern Economic Journal, Vol. 27, No. 3, 1961, p. 236.

  76. 76.

    Henry Simons, Economic Policy for a Free Society, Chicago, University of Chicago Press, 1948, p. 279. See also, Angus Burgin, The Great Persuasion, Cambridge, Harvard University Press, 2012, pp. 87ff.

  77. 77.

    “The spontaneous character of the resulting order must therefore be distinguished from the spontaneous origin of the rules on which it rests, and it is possible that an order which would still have to be described as spontaneous rests on rules which are entirely the result of deliberate design.” Friedrich Hayek, Law, Legislation and Liberty, London, Routledge, 2013, p. 44.

  78. 78.

    Friedrich Hayek, The Road to Serfdom, Chicago, University of Chicago Press, 2007, p. 87.

  79. 79.

    Frank H. Knight, “Abstract Economics as Absolute Ethics”, Ethics, Vol. 76, No. 3, 1966, p. 165. See also, for an account of deliberate rule-making decisions, Torstein Eckhoff, Justice: Its Determinants in Social Interaction, Rotterdam, Rotterdam University Press, 1974, pp. 120ff.

  80. 80.

    Milton Friedman, Capitalism and Freedom, Chicago, University of Chicago Press, 2002, p. 6.

  81. 81.

    Friedrich Hayek, “The Intellectuals and Socialism”, University of Chicago Law Review, Vol. 16, No. 3, 1949, p. 428.

  82. 82.

    H. Simons, Economic Policy for a Free Society, Chicago, U. of Chicago Press, 1948, p. 51.

  83. 83.

    Voltaire, “Loi”, in Œuvres philosophiques, quoted in Friedrich Hayek, New Studies in Philosophy, Politics, Economics and the History of Ideas, London, Routledge & Kegan Paul, 1985, p. 5.

  84. 84.

    Cass Sunstein, Free Markets and Social Justice, Oxford, Oxford University Press, 1997, p. 5.

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Melkevik, Å. (2020). The Egalitarian Tilt of Classical Liberalism. In: If You’re a Classical Liberal, How Come You’re Also an Egalitarian?. Palgrave Studies in Classical Liberalism. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-37908-7_1

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