To What Extent Do Liberals Agree On The Economy Flashcards
(15 cards)
Introduction
Conservatives are traditionally seen as defenders of capitalism, private property, and limited government involvement in the economy. However, beneath this surface unity lies significant internal disagreement, particularly between traditional paternalist conservatives and the neo-liberal wing of the New Right. While all conservatives support capitalism to some degree, they differ over the role for the state, the purpose of economic policy and whether markets should be tamed or unleashed.
Thus, conservatism offers not one economic vision but a spectrum of positions ranging from interventionist paternalism to radical free-market libertarianism
1: conservatives fundamentally diverge on whether the economy should be regulated or left to the free market
Topic sentence
A central divide in conservative thinking is whether the economy functions best when regulated by the state in the interest of social stability, or when left to operate freely without interference.
1: conservatives fundamentally diverge on whether the economy should be regulated or left to the free market
Traditional conservatives
-traditional conservatives, particularly in the 19th century, were initially sceptical of industrial capitalism, fearing that its disruptive social consequences- would undermine the hierarchal order they valued.
-although not opposed to private property or enterprise, they believed capitalism must be tempered by authority and responsibility
1: conservatives fundamentally diverge on whether the economy should be regulated or left to the free market
One Nation
-One Nation conservatives, most notably Disraeli, took this further, embracing moderate state intervention to address the inequalities produced by unrestrained market forces. Disraeli’s government passed the Factory Act (1874) and the Artisans’ Dwellings Act (1875), reflecting a commitment to “change to conserve”: using economic reform to preserve social unity and avert class conflict.
1: conservatives fundamentally diverge on whether the economy should be regulated or left to the free market
Neo-liberals
-in stark contrast, Neo-liberal conservatives reject this approach entirely. For them, the free market is the engine of liberty and prosperity, and the state should have only a minimal role in economic life
-Hayek’s The Road to Serfdom warned that state economic planning inevitably leads to tyranny, as governments lack the knowledge to allocate resources efficiently and tend ton suppress individual freedom in the process.
-they argued that attempts to stimulate demand- especially through Keynesian-style public spending- would only produce inflation and inefficiency.
-in response to the economic stagnation of the 1970s, neo-liberals advocated for monetarism, privatisation and deregulation, arguing that markets self-correct better than governments can intervene.
-this became the dominant policy under Margaret thatcher in the UK and Ronald Reagan in the US, whose economic platforms aimed to “to roll back the frontiers of the state”.
1: conservatives fundamentally diverge on whether the economy should be regulated or left to the free market
Conclusion
Thus while both Traditional and One Nation conservatives and Neo-liberals support capitalism, they profoundly disagree on whether it should be regulated to serve society or left alone to serve itself.
2: Conservatives fundamentally diverge on whether economic policy should promote social responsibility or individual freedom
Topic sentence
Another key divide lies in why conservative support capitalism- whether it is a means to reinforce social obligation and cohesion or a mechanism for promoting individual autonomy.
2: Conservatives fundamentally diverge on whether economic policy should promote social responsibility or individual freedom
One Nation
-one nation conservatives and paternalists view economic policy as a tool to uphold national unity and shared responsibility.
-their support for limited redistribution and welfare is not rooted in socialist egalitarianism but in a belief that economic inequality, but in a belief that economic inequality, left unchecked, leads to resentment, instability and potentially revolutionary politics.
-Disraeli, concerned with the growing divide between the rich and poor in Victorian Britain, argued that the upper classes must act as moral stewards, using their wealth and position to elevate “the condition of the people”.
-this is based on noblesse oblige- the idea that privilege comes with responsibility.
-later post-war One Nation Conservatives continued this tradition by endorsing Keynesianism, state welfare and public ownership, not because they abandoned capitalism, but because they saw economic intervention as a way to preserve social order and moral duty
2: Conservatives fundamentally diverge on whether economic policy should promote social responsibility or individual freedom
Neo-Liberals
-by contrast, neo-liberals thinkers approach the economy from a fundamentally different perspective, rooted in egoistical individualism.
-they do not see economic policy as a means to bind society together, but as a way to liberate individuals from dependency and coercion.
-Ayn Rand argued that the pursuit of self-interest is not only natural, but morally virtuous- the economy should reward ambition and excellence, not subsidise failure or weakness.
-Robert Nozick similarly rejected any form of redistribution, calling taxation for welfare purposes as “legalised theft”.
-in this view, economic justice is not about equality of outcome or even opportunity, but respect for property rights and voluntary exchange.
-welfare and state intervention, far from fostering social responsibility, are seen as infantilising and corrosive, encouraging a “dependency culture” that robs people of dignity and initiative.
-Thatcher encapsulated this outlook when she claimed that the state’s role was not to solve problem but to “get out of the way”
2: Conservatives fundamentally diverge on whether economic policy should promote social responsibility or individual freedom
Conclusion
Thus, while One Nation conservatives use economic policy to bind society together, neo-liberals use it to pull the individual apart from the collective- an entirely different purpose reflecting deep philosophical divergence
3: conservatives broadly converge in supporting private property and capitalism as essential to social stability
Topic sentence
Despite their differences, conservatives generally converge in their support for private property, capitalism and opposition to socialist economic planning. All strands of conservatism view property ownership as a source of stability, order and personal responsibility, even if they disagree on how the state should regulate it.
3: conservatives broadly converge in supporting private property and capitalism as essential to social stability
Traditional conservatives and One Nation
- for traditional conservatives, property is a natural extension of hierarchy- those who are best placed to govern, as they have a stake in maintaining social order.
-Burke saw property ownership as a civilising force, encouraging prudence and long-term thinking.
-similarly, One Nation conservatives embraced capitalism not as an ideology, but as a pragmatic system that, if reformed and regulated, could support both prosperity and cohesion. Their support for mixed economies and limited welfare does not undermine their commitment to capitalism- it simply reflects a desire to humanise it
3: conservatives broadly converge in supporting private property and capitalism as essential to social stability
Neo Liberal and Neo Conservative
-even neo-liberal conservatives, for all their radicalism, share the belief that capitalism is morally and practically superior to alternatives like socialism. While they reject state intervention, they fiercely defend private enterprise, profit motives and market competition as engines of innovation and growth.
-the post 2008 financial crisis revealed this underlying agreement: though the crisis prompted temporary Keynesian stimulus, it also left to a resurgence of austerity economics, especially under David Cameron’s conservative-led government.
-this reaffirmed the conservative instinct to control public spending to avoid long-term debt and even if it involved social costs.
-similarly, Neo-conservatives, though more focused on morality and culture, support free enterprise as part of their wider commitment to national strength and discipline.
3: conservatives broadly converge in supporting private property and capitalism as essential to social stability
Conclusion
Therefore, while conservatives may differ on how the economy should be managed, they share a deep-rooted opposition to collectivism, and a belief that economic liberty is the foundation of a stable society
Conclusion
In conclusion, conservatives disagree profoundly on how the economy should be structured and why it matters. Traditional and One Nation conservatives see the economy as a tool for preserving social order and fulfilling moral obligations, while neo-liberal conservatives prioritise individual freedom, limited government, and the sanctity of private property. Yet despite these tensions, all conservative strands unite in their opposition to socialist planning and their belief in capitalism as the best route to prosperity and stability. Ultimately, conservatives converge on ends- support for capitalism and order- but diverge on means, revealing the ideological diversity within the broad tradition
