Posts Tagged ‘David Ricardo’

Review: The Liberal Tradition, ed. by Alan Bullock and Maurice Shock

November 6, 2016

(Oxford: OUP 1967)

liberal-tradition-pic

I picked this up in one of the secondhand bookshops in Cheltenham. I am definitely not a Liberal, but so many of the foundations of modern representative democracy, and liberal political institutions, rights and freedoms were laid down by Liberals from the 17th century Whigs onward, that this book is of immense value for the historic light it sheds on the origins of modern political thought. It is also acutely relevant, for many of the issues the great liberal philosophers, thinkers and ideologues argued over, debated and discussed in the pieces collected in it are still being fought over today. These are issues like the freedom, religious liberty and equality, democracy, anti-militarism and opposition to the armaments industry, imperialism versus anti-imperialism, devolution and home rule, laissez-faire and state intervention, and the amelioration of poverty.

Alan Bullock is an historian best known for his biography of Hitler: A Study in Tyranny, which remains the classic work on the Nazi dictator. In the 1990s he produced another book which compared Hitler’s life to that of his contemporary Soviet dictator and ultimate nemesis, Hitler and Stalin: Parallel Lives. The book has an introduction, tracing the development of Liberalism from its origins to the 1930s, when the authors consider that the Liberal party ceased to be an effective force in British politics. This discusses the major issues and events, with which Whig and Liberal politicians and thinkers were forced to grapple, and which in turn shaped the party and its evolving intellectual tradition.

The main part of the book consists of the major historical speeches and writings, which are treated in sections according to theme and period. These comprise

Part. Fox and the Whig Tradition

1. Civil Liberties.

Two speeches by Charles James Fox in parliament, from 1792 and 1794;
Parliamentary speech by R.B. Sheridan, 1810.
Parliamentary speech by Earl Grey, 1819.
Lord John Russell, An Essay on the History of the English Government and Constitution, 1821.
Lord John Russell, parliamentary speech, 1828.

2. Opposition to the War against Revolutionary France

Speeches by Charles James Fox, from 1793, 1794 and 1800.

3. Foreign Policy and the Struggle for Freedom Abroad

Earl Grey, parliamentary speech, 1821;
Marquis of Lansdowne, parliamentary speech, 1821.
Extracts from Byron’s poems Sonnet on Chillon, 1816, Childe Harold, Canto IV, 1817, and Marino Faliero, 1821.

4. Parliamentary Reform

Lord John Russell, parliamentary speech, 1822.
Lord Melbourne, parliamentary speech, 1831.
T.B. Macaulay, parliamentary speech, 1831.

Part II. The Benthamites and the Political Economists, 1776-1830.

1. Individualism and Laissez-faire

Two extracts from Adam Smith’s The Wealth of Nations, 1776.
Jeremy Bentham, A Manual of Political Economy, 1798.

2. Natural Laws and the Impossibility of Interference

T.R. Malthus, Essay on Population, 1798.
David Ricardo, The Principles of Political Economy and Taxation, 1819.

3. Free Trade

Adam Smith, The Wealth of Nations,
David Ricardo, Principles of Political Economy,
Petition of the London Merchants, 1820.

4. Colonies

Adam Smith, The Wealth of Nations.

5. Reform

Jeremy Bentham, Plan of Parliamentary Reform, 1817.
David Ricardo, Observations on Parliamentary Reform, 1824.
Jeremy Bentham, Constitutional Code, 1830.
John Stuart Mill, Autobiography.

Part III. The Age of Cobden and Bright.

1. Free Trade and the Repeal of the Corn Laws

Petition of the Manchester Chamber of Commerce to the House of Commons, 20 December 1838.
Richard Cobden, two speeches in London, 1844.
Cobden, speech in Manchester, 1846,
Lord John Russell, Letter to the Electors of the City of London (The ‘Edinburgh Letter’) 1845.

2. Laissez-Faire

Richard Cobden, Russia, 1836.
Richard Cobden, parliamentary speech, 1846.
T.B. Macaulay, parliamentary speech, 1846.
Joseph Hume, parliamentary speech, 1847.
John Stuart Mill, Principles of Political Economy, 1848.

Education

T.B. Macaulay, parliamentary speech 1847.
John Bright, parliamentary speech 1847.

4. Religious Liberty

T.B. Macaulay, parliamentary speech, 1833.
John Bright, two parliamentary speeches, 1851 and 1853.

5. Foreign Policy

Richard Cobden, parliamentary speech, 1849;
Viscount Palmerston, speech at Tiverton, 1847;
Richard Cobden, parliamentary speech, 1850; speech at Birmingham, 1858; speech in Glasgow, 1858;
John Bright, letter to Absalom Watkins, 1854;
W.E. Gladstone, parliamentary speech, 1857;

6. India and Ireland

T.B. Macaulay, parliamentary speech, 1833;
John Bright, four speeches in parliament, 1848, 1849,1858, 1859;
Richard Cobden, speech at Rochdale, 1863.

Part IV. The Age of Gladstone

1. The Philosophy of Liberty

John Stuart Mill, On Liberty, 1859;
John Stuart Mill, Representative Government, 1861;
Lord Acton, A Review of Goldwin smith’s ‘Irish History’, 1862;
Lord Acton, The History of Freedom in Antiquity, 1877.
Lord Acton, A Review of Sir Erskine May’s ‘Democracy in Europe’, 1878.
Lord Acton, letter to Bishop Creighton, 1887.
Lord Acton, letter to Mary Gladstone, 1881;
John Morley, On Compromise, 1874.

2. Parliamentary Reform

Richard Cobden, two speeches at Rochdale, 1859 and 1863;
John Bright, speech at Rochdale, 1863; speech at Birmingham, 1865; speech at Glasgow, 1866; speech at London, 1866;
W.E. Gladstone, speech at Chester, 1865; speech at Manchester, 1865; parliamentary speech, 1866;

3. Foreign Policy

W.E. Gladstone, two parliamentary speeches, 1877 and 1878; speech at Dalkeith, 1879; speech at Penicuik, 1880, speech at Loanhead, 1880; article in The Nineteenth Century, 1878.

4. Ireland

John Bright, speech at Dublin, 1866 and parliamentary speech, 1868.
W.E. Gladstone, two parliamentary speeches, 1886 and 1888.

Part V. The New Liberalism

1. The Philosophy of State Interference

T.H. Green, Liberal Legislation or Freedom of Contract, 1881;
Herbert Spencer, The Coming Slavery, 1884;
D.G. Ritchie, The Principles of State Interference, 1891;
J.A. Hobson, The Crisis of Liberalism, 1909;
L.T. Hobhouse, Liberalism, 1911;

2. The Extension of Democracy

Herbert Samuel, Liberalism, 1902;
Sir H. Campbell-Bannerman, speech at Plymouth, 1907;
D. Lloyd George, speech at Newcastle, 1909;
H.H. Asquith, speech at the Albert Hall, 1909.
L.T. Hobhouse, Liberalism, 1911.

3. Social Reform

Joseph Chamberlain, speech at Hull, 1885, and Warrington, 1885;
W.E. Gladstone, speech at Saltney, 1889;
Lord Rosebery, speech at Chesterfield, 1901;
Winston S. Churchill, speech at Glasgow, 1906;
D. Lloyd George, speech at Swansea, 1908;
L.T. Hobhouse, Liberalism, 1911;
Manchester Guardian, leading article, 8th July 1912;

4. The Government and the National Economy

H.H. Asquith, speech at Cinderford, 1903;
Sir H. Campbell-Bannerman, speech at Bolton, 1903;
D. Lloyd George, speech at Bedford, 1913, and speech at Middlesbrough, 1913;
L.T. Hobhouse, Liberalism, 1911.

5. Imperialism and the Boer War

Sir William Harcourt, speech in West Monmouthshire, 1899;
J.L. Hammond, ‘Colonial and Foreign Policy’ in Liberalism and the Empire, 1900;
J.A. Hobson, Imperialism, 1902;
Sir H. Campbell-Bannerman, speech at Stirling, 1901.

6. Armaments

Sir H. Campbell-Bannerman, speech at London, 1905;
William Byles, parliamentary speech, 1907;
Sir E. Grey, two parliamentary speeches from 1909 and 1911;
Sir J. Brunner, speech at the 35th Annual Meeting of the National Liberal Federation, 1913.

7. Foreign Policy

House of Commons debate 22nd July 1909, featuring J.M. Robertson and Arthur Ponsonby;
Sir E. Grey, two parliamentary speeches, 1911 and 1914;
House of Commons debate, 14th December 1911, featuring Josiah Wedgwood and J.G. Swift MacNeill;
Manchester Guardian, leading article, 1 August 1914;

Part VI. Liberalism after 1918

1. The End of Laissez-faire

J.M. Keynes, The End of Laissez-Faire, 1926;
Britain’s Industrial Future, the Report of the Liberal Industrial Inquiry, 1928;
J.M. Keynes and H.D. Henderson, Can Lloyd George Do It? 1929,
Sir William Beveridge, Full Employment in a Free Society, 1944.

2. The League and the Peace

Viscount Grey of Fallodon, The League of Nations, 1918;
Gilbert Murray, The League of Nations and the Democratic Idea, 1918;
Manchester Guardian, leading article, 24th June 1919;
J.M. Keynes, The Economic Consequences of the Peace, 1919;
D. Lloyd George, speech at London, 1927;
Philip Kerr, The Outlawry of War, paper read to the R.I.I.A., 13 November 1928;
The Liberal Way, A survey of Liberal policy, published by the National Liberal Federation, 1934.

Epilogue

J.M. Keynes, Am I a Liberal? Address to the Liberal summer school at Cambridge, 1925.

In their conclusion, Bullock and Shock state that Liberal ideology is incoherent – a jumble – unless seen as an historical development, and that the Liberal party itself lasted only about seventy years from the time Gladstone joined Palmerstone’s government in 1859 to 1931, after which it was represented only by a handful of members in parliament. The Liberal tradition, by contrast, has been taken over by all political parties, is embodied in the Constitution, and has profoundly affected education – especially in the universities, the law, and the philosophy of government in the civil service. It has also inspired the transformation of the Empire into the Commonwealth. It has also profoundly affected the British character at the instinctive level, which has been given expression in the notion of ‘fair play’.

They also write about the immense importance in the Liberal tradition of freedom, and principle. They write

In the pages which follow two ideas recur again and again. The first is a belief in the value of freedom, freedom of the individual, freedom of minorities, freedom of peoples. The scope of freedom has required continual and sometimes drastic re-defining, as in the abandonment of laissez-faire or in the extension of self-government to the peoples of Asia and Africa. But each re-definition has represented a deepening and strengthening, not an attenuation, of the original faith in freedom.

The second is the belief that principle ought to count far more than power or expediency, that moral issues cannot be excluded from politics. Liberal attempts to translate moral principles into political action have rarely been successful and neglect of the factor of power is one of the most obvious criticisms of Liberal thinking about politics, especially international relations. But neglect of the factor of conscience, which is a much more likely error, is equally disastrous in the long run. The historical role of Liberalism in British history has been to prevent this, and again and again to modify policies and the exercise of power by protests in the name of conscience. (p. liv).

They finish with

We end it by pointing to the belief in freedom and the belief in conscience as the twin foundations of Liberal philosophy and the element of continuity in its historical development. Politics can never be conducted by the light of these two principles alone, but without them human society is reduced to servitude and the naked rule of force. This is the truth which the Liberal tradition has maintained from Fox to Keynes – and which still needs to be maintained in our own time. (pp. liv-lv).

It should be said that the participation of the Lib Dems was all too clearly a rejection of any enlightened concern for principle and conscience, as this was jettisoned by Clegg in order to join a highly illiberal parliament, which passed, and is still passing under its Conservative successor, Theresa May, legislation which is deliberately aimed at destroying the lives and livelihood of the very poorest in society – the working class, the disabled and the unemployed, and destroying the very foundations of British constitutional freedom in the creation of a network of universal surveillance and secret courts.

These alone are what makes the book’s contents so relevant, if only to remind us of the intense relevance of the very institutions that are under attack from today’s vile and corrupt Tory party.

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Shirley William on Demands for Cutting Tax and the Myth of the Social Security Scrounger

May 26, 2016

SWilliams Book Pic

Yesterday I put up a couple of pieces from Shirley Williams’ book, Politics Is For People, in which she attacks the free market ideology of Milton Friedman, and notes how bureaucracy actually grew under the Tories, despite their declared concern for cutting it in the name of efficiency.

The former Labour MP and founder of the SDP also has a few critical observations of the various campaigns to cut taxes, and the myth that people on social security/ jobseeker’s allowance/unemployment benefit/the dole are scroungers.

She writes

A second line of attack, clearly closely related to the reaction against ‘big government’, is on the high public expenditure necessitated by the welfare state. The taxpayers’ revolt began in France with the Poujadist party, wand was later taken up in Denmark, where Per Glijstrup’s anti-tax party had a remarkable, if brief, period of success. it was an element in the 1976 defeat of the Swedish socialist government, and then reached its high-water mark in the triumphant passage of California’s Proposition 13 in 1978. Proposition 13 tied local property taxes to their 1976/7 level, and imposed a 1 per cent maximum on the annual increase, effectively halving the property tax yield. But as the effects of Proposition 13 have been felt on education and other publicly financed services, public enthusiasm for tax cutting has waned. An attempt to pass a similar proposal, known as Jarvis Two, to halve California’s state taxes was heavily defeated in June 1980. The recent history of anti-tax movements is one of dramatic advances which are not then sustained.

One particular form the attack on high public expenditure takes, one that is popular and easy to get across in electoral terms, is the allegation that many people are living off the welfare state who could perfectly well survive on their own. Popular newspapers on both sides of the Atlantic give a lot of space to individual cases – and there always are some – of people proclaiming how they have milked the social security system of thousands of dollars or thousands of pounds. Everybody has heard of somebody who can’t be bothered to get a job, or who stays at home living on welfare because his wage in a job would be little more than his welfare cheque. The ‘poverty trap’ – incomes-related benefits which are lost or reduced as the breadwinner’s income rises – provides a rationale for ‘scrounging’. It really is true that some heads of large families may be better off not working.

Yet the evidence for large-scale ‘scrounging’ is thin; most people much prefer a job to enforced leisure. Nor is the popular hostility against scroungers a by-product of the welfare state. It has a much older history. Ricardo himself inveighed against the Speenhamland system, under which wages were subsidized by the parish if they fell below a minimum level which was linked to the price of bread. ‘The principle of gravitation is not more certain than the tendency of such laws to change wealth and vigour into misery and weakness’, Richardo wrote in On the Principles of Political Economy and Taxation (1817). It might be Professor Milton Friedman speaking. At the end of the eighteenth century, the indefatigable Utilitarian Jeremy Bentham turned his mind to the rehabilitation of convicts, many of them indigent people without work. He proposed to establish a panopticon, a sort of multi-industry establishment, which he described, chillingly, as ‘a mill to grind rogues honest, and idle men industrious’. Similar wishes are still expressed on the floor of Congress or the House of Commons by ardent Conservatives; only the language alters. (Pp. 30-1).

Williams here is exactly right. Mike over at Vox Political, the Angry Yorkshireman and many other bloggers have noted that Thatcher and the Conservatives have consciously adopted the Victorian principle of ‘least eligibility’ in their welfare reforms in order to make living on benefit as humiliating and degrading as possible for those on it, such as the disabled and the unemployed. The incident Mike reported on his blog on Tuesday, in which a woman with dementia was insulted by a member of the DWP, when she failed to answer a security question due to her disability, is an extreme example of this attitude. This just shows how long the Left have known about the extremely illiberal attitude to poverty at the very heart of Thatcherism and its explicit Victorian antecedents.

As for the Poujadists, they were a petit-bourgeois, anti-Socialist, anti-trade union party founded in the 1950s. Poujade was a French shopkeeper, who launched a campaign encouraging shopkeepers not to serve striking workers. One of the books I read a few years ago on Fascism included them as one of the forms it took in the post-War period. And Michael Heseltine was less than impressed with them, and used them as an insult in his spat with the Leaderene when she was goose-stepping around Downing Street. He called her a ‘Poujadist’, which accurately reflects her socio-economic background as the grocer’s daughter, and her petty hostility to the organised working class. It was a reference lost on the gentlemen of the press, however, who thought he meant she was a ‘putschist’. Well, that too, when it comes to petty Fascism.

Williams in her book has many good ideas. It was too bad that she and the rest of her cronies were more interested in splitting away to form the SDP and attacking Labour than squaring up to the Tories.

Thomas Spence on the Working Class as the Creators of Prosperity

March 1, 2014

Spence Book Cover

Back in the 1980s Margaret Thatcher and the New Right declared that the entrepreneurs, businessmen and the financiers were the ‘Creators of Wealth’. This is another appropriation by the right of the claims and slogans of the left. Previously, the term ‘Creators of Wealth’ was used by the Left, chiefly Marxists, to refer to the working class. There was, for example, the Communist slogan, ‘All wealth to the creators of wealth!’ promising the people the true value of their products, if not exactly power. That was to be held exclusively by the Communist party as the ‘vanguard of the proletariat’.

The attitude that the working class are the creators of wealth ultimately goes back to the idea of classical economist, like David Ricardo, that the value of a product was determined by the amount of labour taken to produce it. The classical economists themselves followed Adam Smith in advocating free trade. The early radicals built on this demand more political rights and economic reforms for the working classes – the ‘labouring poor’.

The late 18th and very early 19th century radical, Thomas Spence, strongly argued that all of Britain’s prosperity ultimately rested, not with the landlords and aristocracy, but with the labourers and working people, who physically worked the soil and made industrial products. He urged that Britain should be transformed into a federation of autonomous communes, in which all the inhabitants, including women and children, should govern, and parish lands taken into the collective ownership of the parish. In his pamphlet, The Rights of Infants, he defended this system of the communal ownership of land against the view of the great contemporary revolutionary, Tom Paine, that the people, who worked the land really only had only a claim to a tenth of it. Spence rebutted this in the following passage

BUT stop, don’t let us reckon without our host; for Mr Paine will object to such an equal distribution of the rents. For says he, in his Agrarian Justice, the public can claim but a Tenth Part of the value of the landed property as it now exists, with its vast improvements of cultivation and building. But why are we put off now with a Tenth Share? Because, says Mr. Paine, it has so improved in the hands of private proprietors as to be of ten times the value it was of in its natural state. but may we not ask who improved the land? Did the proprietors alone work and toil at this improvement? And did we labourers and our forefathers stand, like Indians and Hottentots, idle spectators of so much public-spirited industry? I suppose not. Nay, on the contrary, it is evident to the most superficial enquirer that the labouring classes ought principally to be thanked for every improvement.

Indeed, if there had never been any slaves, any vassals, or any day-labourers employed in building and tillage, then the proprietors might have boasted of having themselves created all this gay scene of things. But the case alters amazingly, when we consider that the earth has been cultivated either by slaves, compelled, like beasts, to labour, or by the indigent objects whom they first exclude from a share in the soil, that want may compel them to see their labour for daily bread. In short, the great may as well boast of fighting their battles as of cultivating the earth.

The toil of the labouring classes first produces provisions, and then the demand of their families creates a market for them. Therefore it will be found that it is the markets made by the labouring and mechanical tribes that have improved the earth. And once take away these markets or let all the labouring people, like the Israelites, leave the country in a body and you would immediately see from what cause the country had been cultivated and so many goodly towns and villages built.

You may suppose that after the emigration of all these beggarly people, every thing would go on as well as before: that the farmer would continue to plough, and the town landlord to build as formerly. I tell you nay; for the farmer could neither proceed without labourers nor find purchasers for his corn and cattle. It would be just the same with the building landlord, for he could neither procure workmen to build nor tenants to pay him rent.

Behold then your grand, voluptuous nobility and gentry, the arch cultivators of the earth; obliged, for lack of servants, again to turn Gothic hunters like their savage forefathers. Behold their palaces, temples, and towns, smouldering into dust, and affording shelter only to wild beasts; and their boasted, cultivated fields and garden, degenerated into a howling wilderness.

Thus we see that the consumption created by the mouths and the backs of the poor despised multitude contributes to the cultivation of the earth, as well as their hands. And it is also the rents that they pay that builds the towns and not the racking building landlord. Therefore, let us not in weak comm9iseration be biased by the pretended philanthropy of the great, to the resignation of our dearest rights. And if our estates have improved in their hands, during their officious guardianship, the D-v-l than them; for it was done for their own sakes not four ours, and can be no just bar against us recovering our rights.

Rights of Infants

Now clearly you do need talented businessmen and entrepreneurs, who can set up and manage businesses. But Spence is right about the vital importance of the working classes and how they do the physical works that creates civilisation and prosperity. And this is still a vitally contested point. Obama in many ways isn’t noticeably different from many other American presidents. Despite his introduction of more state medical assistance, he still has the same very strong ties to Wall Street. This has not, however, stopped the American Conservatives viciously attacking him as a Communist. A year or so ago there was a lot of Republican American carping centred around the slogan ‘You didn’t build this!’. Reading between the lines, I got the impression that Obama had dared to state the obvious: that all the American people built their country, including those who physically laid the bricks and mortar, and not just big businessmen like Donald Trump. And that clearly touched a nerve.

The power of organised labour is still feared by the Tories over here. After all, the miners managed to beat Ted Heath, and so, when Thatcher got the chance, she destroyed the British mining industry, and organised the mass transfer of jobs from Britain to less truculent workers in the Developing World, thus devastating the British industrial base. However, even in this era of globalised markets, big business still needs the markets provided by the mass of the working and lower middle classes. There’s an interesting piece over at Another Angry Voice about this, where the Angry Yorkshireman proves that the Tories’ policy of paying low wages actually makes no sense. He points out that Henry Ford, the ferociously anti-Semitic and anti-socialist industrialist deliberately paid his workers very good wages, so that they could afford to buy more, and so stimulate business. It’s also why FDR in his New Deal introduced a limited form of state unemployment assistance. He felt that if the unemployed were able to continue buying goods, this would continue putting money into the economy and so help end recessions. This, however, isn’t good enough for the Conservatives, who would rather keep the poor in abject poverty, even if this does harm the economy, simply out of viciousness, spite and a desire to hang on to their privilege and status.

It’s about time this was challenged, and the poor started getting back their share of the nation’s wealth.

Iain-Duncan-Smith415

Ian Duncan Smith: Along with Cameron and Osborne, has a policy of spite and vindictiveness towards the poor, just preserve the government’s own social position no matter what the economic and social costs.