Category: Democracy

July 17th, 2019 by geoffhodgson1946

Geoffrey M. Hodgson

The meaning of socialism

The word socialism first appeared in 1827. Robert Owen defined socialism as “the abolition of private property”. Karl Marx took a similar line, and extended the idea of common ownership to the national economy. At least at that time, socialism and communism were virtually synonymous, especially in terms of their shared vision of the final goal. They both meant the common ownership of the means of production, and the end of markets and competition.

Robert Owen

This view persisted throughout the twentieth century, including within the UK Labour Party. George Bernard Shaw wrote with approval: “Socialists are trying to have the land and machinery ‘socialised,’ or made the property of the whole people”. In 1908 the Labour Party Conference passed a resolution, adopting the aim of “the socialization of the means of production, distribution and exchange to be controlled by a democratic state”. In 1924 Sidney Webb summarized his view of socialism as involving “(1) Collective Ownership; (2) Collective Regulation; (3) Collective Taxation; and (4) Collective Provision”.

Similar views were found among Labour Prime Ministers. J. Ramsay MacDonald saw socialism as “a movement to supplant Capitalism altogether, by organising communally the services which Capitalism performs or ought to perform.” In 1937 Clement Attlee wrote of the “evils” of capitalism: their “cause is the private ownership of the means of life; the remedy is public ownership.” Attlee then approvingly quoted the words of Bertrand Russell: “Socialism means the common ownership of land and capital together with a democratic form of government.”

In my book Is Socialism Feasible? I show the persistence of this view of socialism. I also discuss several attempts to change its meaning, including by Douglas Jay, Anthony Crosland, Deng Xiaoping and Tony Blair. Blair tried to shift the meaning to social-ism, by replacing the goal of common ownership by vaguely-specified “ethical values” and a recognition that individuals are socially interdependent. This attempt to revise the meaning has not made much of a mark.

Deng Xiaoping faced the problem of persuading the Chinese Communist Party to support his enormously successful market reforms. Deng declared:

“The essence of socialism is liberation and development of the productive forces, elimination of exploitation and polarization, and the ultimate achievement of prosperity for all … common prosperity is the essence of socialism.”

Note the subtle shift from property to prosperity. If that is socialism, then few people are not socialists.

But the original meaning endures. The Merriam-Webster Dictionary defines socialism as “a system of society or group living in which there is no private property” or “a system or condition of society in which the means of production are owned and controlled by the state.” This is remarkably similar to the original definitions of Owen and Marx.

How moderates help Corbyn, and socialists help Trump

Among prominent living politicians today, including Jeremy Corbyn, Bernie Sanders and Jean-Luc Mélenchon, Socialism has retained its original meaning, of widespread common ownership, or at least they have not renounced that original definition.

Bernie Sanders

At the same time, leading Labour Party moderates who support a mixed economy continue to support “democratic socialism”. By doing so they give succour to the full-blooded socialist left, who are much closer to the enduring traditional view of socialism than the moderates themselves. We can pretend that the word socialism has shifted in meaning, but there is little evidence of a major and widely accepted change.

Moderate or otherwise, those using the “democratic socialism” label help to sustain the mistaken idea that socialism (in its enduring and prevalent sense) is compatible with democracy. History and theory both show that a totalitarian concentration of political power flows inevitably from the unmitigated concentration of economic power in the hands of the state that is associated with large-scale socialism.

Alexandria Ocasio-Cortez

A similar problem exists in the US, particularly after the recent election of a young group of socialists to congress, including the impassioned and eloquent Alexandria Ocasio-Cortez. Along with Sanders, they are members of the Democratic Socialist Alliance (DSA) within the US Democratic Party.

The DSA argues for “a vision of a humane international social order based both on democratic planning and market mechanisms”. They also argued that “widespread worker and public ownership will greatly lessen the corrosive effect of capitalists [sic] markets on people’s lives”. While, unlike many other socialists, the DSA notably accepts an enduring role for markets, its agoraphobic bias is revealed by the failure to mention the corrosive effects of bureaucracy on people’s lives.

In some statements, leading DSA politicians seem to favour Nordic-style, welfare state capitalism. But they have not made it clear that they support the large private sectors and financial markets that are prominent in all the Nordic countries. Instead, they go along with the abolition of capitalism. They distance themselves from the Communist regimes of the past. But while the experiment with socialism in Venezuela has led to a catastrophic human disaster, they fail to come out in full condemnation of that regime.

This helps Trump. Not only does he mobilise racist prejudices, he also uses their self-declared socialism to describe them as communist. Given that socialism and communism were (at least originally) virtual synonyms, this ammunition is handed to Trump by his most fervent opponents.

The changed meaning of social democracy

When Social Democratic parties were first formed in Europe in the nineteenth century, most were strongly influenced by Marxism. They were fully socialist in its original sense.

Some separation of meaning between socialism and social democracy occurred beforehand, but it was brought to a head by the onset of the Cold War in 1948. Europe as a whole, and Germany in particular, were divided between the Eastern and Western Blocs.

All socialist and communist parties had to choose –  the East, the West, or a plague on both? With Moscow ties in many cases, almost all Communist parties chose the East. Many moderate Socialist, Social-Democratic or Labour  parties chose the West.

SPD Congress in Bad Godesberg 1959

At its Bad Godesberg Congress in 1959, the German Social Democratic Party (SPD) made fundamental changes to its aims. It dropped its opposition to capitalism, and it abandoned the Marxist analysis of class struggle. The SPD declared:

“The Social Democratic Party therefore favours a free market wherever free competition really exists. Where a market is dominated by individuals or groups, however, all manner of steps must be taken to protect freedom in the economic sphere. As much competition as possible – as much planning as necessary.”

The crucial point here is that the SPD moved from (temporary or permanent) toleration of markets and competition, to accepting markets and competition as desirable, alongside strong public enterprise and state regulation where necessary.

This explicit and fundamental change in aims in the world’s largest and most influential Social Democratic Party led to a separation of meanings of the terms social democracy and socialism. But it must be acknowledged that strong residues of old-style thinking persisted, in the SPD and in social-democratic parties in other countries.

The acid test

There is a simple test to distinguish a socialist from a social democrat, according to currently prevalent meanings of those words.

To be a social democrat it is not enough to accept markets and a mixed economy, as Jeremy Corbyn, John McDonnell and the Democratic Socialists of America have done. After all, a mixed economy could be accepted as a temporary staging post in the transition to full-blooded socialism, as Vladimir Lenin did with his New Economic Policy in 1921.

A modern social democrat must go further. He or she must make a clear and positive case why markets, competition and a private sector are more than a temporary expedient. It must be argued that these things are indispensable, both for economic efficiency and the preservation of freedom. This is the acid test. The SPD in 1959 understood this point and it passed the test.

As far as I am aware, neither Corbyn, McDonnell, Sanders nor Ocasio-Cortez have made such a positive case for a permanent private sector. If I am right, then they are socialists, not social democrats. Despite their protestations, they are closer to traditional communism than to modern social democracy, as practiced in the Nordic countries and elsewhere. I would be delighted if they can prove me wrong.

Large-scale socialism is outdated, extreme and demonstrably incompatible with democracy. At least if these declared socialists want to win parliamentary majorities and form governments, then they have to change their terminology, and dispose with outdated and unfeasible ideas.

But while Nordic social democracy remains remarkably successful (as I show in my book Is Socialism Feasible?) the social-democratic brand throughout Europe has declined in electoral support. Although re-naming is necessary, much more than renaming is required. The abandonment of the socialist label is but a first step. But that is another story.

17 July 2019


Attlee, Clement R. (1937) The Labour Party in Perspective (London: Gollancz).

Blair, Tony (1994) Socialism, Fabian Pamphlet 565 (London: Fabian Society).

Crosland, C. Anthony R. (1956) The Future of Socialism (London: Jonathan Cape).

Democratic Socialists of America (1995) ‘Where We Stand: Building the Next Left’, DSA: Democratic Socialists of America.

Griffiths, Dan (ed.) (1924) What is Socialism? A Symposium (London, Richards).

Jay, Douglas (1937) The Socialist Case, 1st edn. (London: Faber and Faber).

Hodgson, Geoffrey M. (2019) Is Socialism Feasible? Towards an Alternative Future (Cheltenham UK and Northampton MA: Edward Elgar).

Owen, Robert (1991) A New View of Society and Other Writings, edited with an introduction by Gregory Claeys (Harmondsworth: Penguin).

Shaw, George Bernard (1890) What Socialism Is, Fabian Tract No. 13 (London: Fabian Society).

Posted in Bernie Sanders, Common ownership, Democracy, Donald Trump, George Bernard Shaw, Jeremy Corbyn, Karl Marx, Labour Party, Left politics, Lenin, Liberalism, Markets, Private enterprise, Property, Robert Owen, Socialism, Soviet Union, Tony Blair, Venezuela

May 6th, 2019 by geoffhodgson1946

When vital words lose their meaning, then democracy will die

Geoffrey M. Hodgson

Theresa May once told us that “Brexit means Brexit”. We were not made any wiser.

In George’s Orwell’s famous book 1984, the all-powerful Party has the slogans “War is Peace”, “Freedom is Slavery”, “Ignorance is Strength.” We are much closer to that Orwellian World of doublethink now.

In the local elections on 2 May 2019 there was a surge in the vote for the remain parties – Liberal Democrats, Greens, Scottish Nationalists and Plaid Cymru – who do not want Britain to leave the European Union. In a campaign with “Stop Brexit” as their by-line, the Liberal Democrats gained over 700 council seats, their all-time best performance.

Meanwhile, the two main parties who “respect” the illegally-gained referendum result and who are trying to get some kind of Brexit deal, suffered badly. Labour failed to make net gains against the worst government in more than a century, and the Tories themselves lost heavily.

The following day, Prime Minister Theresa May, Jeremy Corbyn and other leading Labour politicians all admitted that their results could have been better. They were seen as evidence not simply of voter discontent. They drew the remarkable conclusion that the surge in the Remain vote meant that the people want them to “sort” or “get on with” Brexit.

Hence voting for Remain means voting for Brexit. The Orwellian world of doublethink has finally arrived, 35 years after the book predicted. Remarkably few media interviewers or presenters, including from the corrupted BBC and the populist ITV, have challenged this interpretation of the election results. Ignorance is strength. Remain means Brexit.

Brexit means Remain

But in this Orwellian world, Brexit means Remain too. We are now into double doublethink.

On 22 April 2019 we saw the popular TV presenter Richard Madeley hosting the popular ITV programme Good Morning Britain. Madely insisted on the programme that if the UK remained in a customs union, then that meant that the UK was still a member of the EU.

The brilliant and indefatigable Femi Oluwole tried to put Madeley right. Femi is an expert in EU law. But it was to no avail. The idea that remaining in a customs union means remaining in the EU prevailed on a popular ITV programme, which boasts about 700,000 viewers daily.

It got even worse. On 4 May 2019 the Tory MP Mark Francois was interviewed by Femi. First Francois claimed that any customs union with the EU mean that the UK would still be “in the EU”, then “in effect” still be in EU, then he switched back to “in the EU”.

Francois is an opportunist, pandering to the ultra-Brexiteers who dominate his party. It is possible that, unlike the poorly-briefed Madeley, he knows the truth. Hence the wily use of the “in effect” fig-leaf here and there.

I did some polling myself. I did my best to get Leavers to participate, but any Twitter poll of mine will have a sample bias toward Remainers. The poll has a relatively small sample of a few hundred responses, and the results have to be used with caution.

Amazingly, despite the likely Remainer bias, 22 per cent on my poll thought that the statement “If UK is in a customs union with the EU, then it is still a member of the EU” is true. 73 per cent thought it was false. 5 per cent of respondents did not know.

Overall, that means that over a quarter of respondents did not know that it is possible to be in a customs union with the EU and not be in the EU. If it were possible to compensate for the likely Remainer bias, then this figure would probably be higher.

Turkey – already in the EU?

Turkey has a well-established customs union with the EU. This means that its trade tariffs and duties must match those of the EU. It also means that Turkey is heavily embroiled with EU agreements and EU regulations. But Turkey is not a member of the EU.

An EU member state is subject to the privileges and obligations of membership. The member states of the EU are subjected to binding EU laws in exchange for representation within the common legislative and judicial institutions. Turkey has no representation in the European Parliament, and no seat in the Council of the European Union or the European Council. Other than via op-in agreements, it is not bound by EU laws.

But, according to my poll, something around 20 per cent of the British adult population seem to believe that being in a customs union means being a member of the EU. According to them, Turkey must be a member of the EU.

So why did Boris Johnson and Vote Leave tried to scare people during the 2016 referendum by say that Turkey was “to join” the EU? If a customs union means EU membership then Turkey was already a member. But Vote Leave itself implicitly denied this.

According to the mistaken 20 per cent, if the UK stays in a customs union after declaring it has achieved Brexit, then Brexit has not truly happened. This particular Brexit means Remain. Many people, including some politicians and TV presenters, seem to believe this.

A threat to democracy

Whether these misunderstandings result from deceit or ignorance, they are fatal for rational discourse in a democracy. If different groups of people are using the same words to mean very different things, then meaningful conversation is impossible.

Consequently, it cannot be claimed that the meaning of Brexit is generally clear, and it is “the will of the people”. It is no longer reasonable to say that the 2016 vote in favour of Brexit must be “respected” when there is inadequate agreement on what Brexit means, and at least one-fifth of the population misunderstand the basic facts of what being a member or non-member of the EU means. To many people, some Brexits mean Remain.

If our parliamentary system ever regains a measure of sanity, then one of its first acts of legislation should be to place constitutional voting thresholds in the use of referendums, especially those that could lead to major constitutional changes or the removal of our rights. Even a 60 per cent threshold may be unsafe as a basis for legislation, especially when over one-fifth may not understand what the proposition in the referendum means. A super-majority of over 60 per cent must vote for a proposition for it to have any advisory or compelling force.

Television channels such as the BBC, ITV and Channel Four have a public service broadcasting obligation as a condition for the licence to broadcast. This system has clearly failed us. They have a duty put out the facts, even if the public or the politicians do not want to hear them.

Television presenters that put out falsehoods such as “being in a customs union with the EU means being a member of the EU” should be reprimanded or sacked. A schoolteacher or lecturer that repeated similar falsehoods would be deemed incompetent and would face a similar fate. There can be no short measures here. Our democracy is in severe danger.

Driven to extremes

The level of public misunderstanding over what Brexit or Remain mean puts the Tory government and its current Labour opposition in great difficulty. To move toward Brexit, they need to agree to the “backstop” conditions, involving a customs union with the EU, so as to avoid a hard border between Ireland and Northern Ireland. The alternative is a no-deal Brexit that would put the UK economy into recession, destroy the Good Friday Agreement and threaten peace in Ireland and even on the British mainland.

Both the Labour and the Tory leaderships have edged toward a Brexit that avoids a no-deal outcome and keeps a soft border in Ireland. A group of Labour MPs led by Stephen Kinnock want to go even further: they are pushing for Norway-style status after Brexit.

But the current level of misunderstanding over the meaning of Brexit and Remain puts all these Brexit solutions into great difficulty. Any Brexit deal involving a customs union or Norway-style membership of the Single Market, will be seen by around one fifth of the population as not Brexit but Remain.

Given this confusion, many Labour and Tory voters who support Brexit will see their parties as betraying the referendum results that the party leaders themselves have urged everyone to “respect”. Meanwhile, Labour and Tory voters who support Remain will see the enabling of Brexit as contrary to the national interest and a removal of individual rights.

Any deal-bound Brexit has now become extremely difficult and potentially unpopular. Any deal with the EU must involve some kind of customs union with the EU. But such solutions will alienate large numbers of Brexiters and even more Remainers. The Brexit discourse has polarised, with supports of Remain on one side, and advocates of “no deal” on the other.

Nigel Farage understands this. Before the 2016 referendum he advocated a Norway-style Brexit model. He now says that any customs union is a betrayal and he is pushing for no deal. Thanks to his frequent appearances on the pro-Brexit BBC and ITV, he is piling up his electoral support and pulling over large chunks of Tory voters.

Labour is suffering badly. For three years they have played the duplicitous game of trying to look pro-Remain and pro-Brexit at the same time. But when politics moves to extremes no-one wants to buy fudge. As the Labour MP Ben Bradshaw put it on Twitter shortly after the May 2019 local elections:

“This was the first Electoral test of our policy of ‘constructive’ ambiguity on Tory #brexitshambles. It showed that when you cower in the middle of the road on the biggest existential crisis facing Britain for generations you get squashed.”

As a result, as Bradshaw admitted, lifelong Labour voters were deserting to the Liberal Democrats.

The battle now is between those that are campaigning for Remain, including the Liberal Democrats, the Green party and Change UK, on the one side, and those campaigning for the most extreme and damaging of all possible Brexits, on the other. The Conservatives and Labour are piggies in the middle. They will be the losers.

Over two thousand years before Orwell, the great Chinese philosopher Confucius wrote:

“If names are not right, words are misused. When words are misused, affairs go wrong. When affairs go wrong, courtesy and music droop, law and justice fail. And when law and justice fail them, a people can move neither hand nor foot.”

Today, words have been misused. Law and justice have failed. Politicians are immobilized. A catastrophe is brewing. We must avert it.

Double doublethink – where both Remain and Brexit are given their opposite meanings – is making meaningful dialogue impossible in a divided country. Unlike we act firmly and quickly, our democracy could be disabled. Difficult and dangerous times are ahead.

6 May 2019

Posted in Brexit, Democracy, Green Party, Jeremy Corbyn, Labour Party, Politics, Populism

September 1st, 2018 by geoffhodgson1946

 Marxism, liberalism and the Euston Manifesto


“It is at times like these that voices like Geras are sorely needed.” @GraySergeant

“I wish we hard Norm’s intelligence, clarity and compassion to fall back on now.” @SP_Duckworth


Geoffrey M. Hodgson

In 1967, Norman Geras came to the University of Manchester and took up a position as a lecturer in politics. I was then an undergraduate student in Manchester and three years his junior. We were both involved in left politics and our paths soon crossed. Together we campaigned against the Vietnam War.

When I briefly flirted with the International Marxist Group in the early 1970s, Norm was a member too. (I’m unsure when he left – he may have stayed on until its dissolution in 1983.) Norm and I were both members of Marxist reading groups, where together we discussed economics and politics.

Disillusioned with the far left, I re-joined the Labour Party in 1974. (I was previously a member in 1966-1968.) Norm did not take that route. Yet we remained in contact until I left Manchester in 1980. I returned to the University of Manchester on a research fellowship in the 1984-1985 academic year. Norm and I met up again. I recollect another study group in that year in which we both took part.

Marx and Human Nature

Norm’s 1983 book on Marx and Human Nature had a big impact on me. In the 1970s he had argued forcefully that the natural foundations of human existence had to be taken into account. The book refuted the fashionable misconception that Marx had denied the existence of a universal human nature.

Against social constructionism, Norm argued that human beings cannot be reduced merely to their relations with others. He argued more generally that human nature had biological as well as socio-cultural foundations.

In 1983 I had already encountered the work of Thorstein Veblen. These influences drove me into biology and evolutionary anthropology. In retrospect, Norm’s input was crucial in the development of my thought. The result was a number of works of mine on evolutionary themes, particularly from 1993 onwards.

After I finally left Manchester in 1985 I did not meet Norm again. We moved in different political spheres and I lost personal contact, but his incisive intelligence had made a permanent mark on me. Despite the intense political disputes on the left, he was always respectful and never acrimonious.

The 2003 Invasion of Iraq

In 2003 Norm retired from his post of Professor of Politics at the University of Manchester. That was the year of the fateful invasion of Iraq. He started a blog, when this mode of communication was in its infancy. Unfortunately I was unaware of this initiative at the time.

Norm supported the US-led invasion in 2003. He argued that it was a humanitarian intervention to remove the vicious dictator Saddam Hussein.

I had supported the first Iraq War in 1990-91 on the grounds that it was important to restore Kuwait’s sovereignty after Saddam’s invasion.

But, like many others, I opposed the 2003 invasion because of its lack of UN backing, its illegality, and disbelief in the pretext that Saddam had weapons of mass destruction. I thought that it would have been better to put other pressure on the regime, along the lines proposed by the French government at the time.

The Euston Manifesto

In 2006 the Euston Manifesto was published. I did not become aware of its existence until a couple of years later. The Euston Manifesto is a bold plea for democracy and universal human rights and for a re-alignment on the left. Its signatories include supporters and opponents of the 2003 invasion of Iraq.

The Euston Manifesto launch in 2006
Left to right: Alan Johnson, Eve Garrard, Nick Cohen, Shalom Lappin and Norman Geras

The Manifesto criticises that “anti-imperialist” left that ends up supporting totalitarian regimes and reactionary insurgent forces, on the grounds that that they are opposed to the West. The Manifesto unequivocally condemned terrorist and the deliberate use of force against civilians.

Principle number seven of the Manifesto reads:

“We recognize the right of both the Israeli and the Palestinian peoples to self-determination within the framework of a two-state solution. There can be no reasonable resolution of the Israeli-Palestinian conflict that subordinates or eliminates the legitimate rights and interests of one of the sides to the dispute.”

Crucially, the Manifesto recognizes the right of both Israel and Palestine to exist, against the “anti-Zionist” rhetoric of many on the left. This “anti-Zionist” left aligns with groups such as Hamas and Hezbollah who declare explicitly for the destruction of Israel.

On reading the Euston Manifesto I found myself in complete agreement with it. I wrote to the organizers offering my support and my signature. But I received no response. It seemed that the group had quickly become moribund.

The Norman Geras Reader

Norm died of cancer in October 2013. I have recently read The Norman Geras Reader – a great collection of some of his writings, which was published in 2017. The Reader also contains the text of the Euston Manifesto.

Everyone on the left would benefit from the Reader, especially the majority in the Labour Party who have come under the sway of a leader who is anti-West, who has joined in with promotors of terrorism, who has shared platforms with anti-Semites, and who remains equivocal about the right of Israel to exist.

The “What’s there is there” subtitle of the Reader in part refers to instances of anti-Semitism in Marx’s writing, which some Marxists choose to deny. Today it might also apply to another over-adored leader of our time.

Long before others, Norm rang alarm bells about these reactionary tendencies on the left. This remains one of the most important and prescient features of Norm’s writing. This is one of several reasons why he deserves to be remembered.

Marxism and liberalism

But despite our strong convergence over the Euston Manifesto, I found that in other respects Norm and I had diverged since we last met in the 1985.

Karl Marx

Norm had moved politically in a liberal direction, but I had moved further. The Norman Geras Reader shows that Norm had remained a Marxist (of sorts) until his death. By contrast, I had departed from Marxism in about 1980 and set out on a decades-long journey from socialism to liberalism.

Despite his continuing adherence to Marxism, the Reader shows that Norm was strongly sympathetic to liberalism and he took its achievements very seriously.

For example, in a 1999 essay he argued that a “minimum utopia is to be conceived not only as socialist but also as liberal”. In 2012 he argued more forcefully:

“Unless … Marxists show themselves willing to engage fully with the intellectual resources of liberalism … unless a Marxist political theory comes to terms with the truths of liberal political theory, acknowledging the normative force of human rights, the idea of judicial independence and the separation of powers … insisting on free elections and an untrammelled freedom of speech and opinion, understanding the virtues of political pluralism … Marxism as a political movement might as well shut up shop.”

Bravo. But unlike Norm I agree with the closure of Marxist activity in the conclusion as well as with the preceding necessary conditions. Marxism cannot be liberal and it should shut up shop as a political movement. We can retain Marx’s more robust analytical insights, particularly on the nature and dynamics of capitalism.

But Marxist politics have been a disaster, and its dreadful and murderous consequences are not accidental. Marxism is incompatible with liberalism.

The politico-economic preconditions of liberalism

Norm rightly berated Stalin and other totalitarian Marxists. But are the disastrous consequences of Marxist regimes all down to bad people gaining positions of power? Surely it must be more than that? Why has every Marxist regime breached human rights, terminated free elections, curtailed freedom of speech and ended political pluralism?

To answer these questions we must look at the politico-economic conditions under which liberal-democratic states have been established and sustained. It is not just about the personalities of individuals.

There is a widespread opinion among non-Marxist social scientists that democracy requires countervailing political and economic power to have a chance of survival. In Marxist terms, if the economic “base” determines the “superstructure”, then a pluralist polity requires a pluralist (or mixed) economy, and not one that is encompassed by a massive state.

A complete concentration of political and economic power in the hands of the state, which Marx and Engels advocated with enthusiasm, always requires and enables a despotic political regime. There are no exceptions. The centralizing economic project within Marxism is incompatible with liberalism.

Accordingly, to prevent such a concentration of economic and hence political power in the hands of the state, there must be a private sector that is free to trade on markets.

Capitalism, socialism and greed

Norm disliked the greed and avarice that is often encouraged by capitalism. I do too. But I have learned that market economies come in many forms and are infused by different cultural precepts. A market economy does not necessarily mean a dog-eat-dog dystopia of greed and selfish individualism. As the Nordic examples illustrate, a better capitalism is possible. We need to build on their achievements and move still further in an egalitarian direction.

Furthermore, socialist bureaucracies can encourage selfishness, corruption and ruthless, power-seeking behaviour. Under real socialism these outcomes have typically been just as bad as those found within the worst of capitalisms.

A Worker Cooperative in New York City

Our understanding of human nature is relevant here, as Norm would have insisted. Over hundreds of thousands of years we have evolved to cooperate in small groups of no more than a hundred or so. This suggests that If socialism is to work, then it must be on a small scale.

Capitalism can also engender cooperation within autonomous firms, coordinated by markets. Some of these enterprises could be converted into worker cooperatives.

Class struggle and universal rights

There is a second reason why Marxism is incompatible with liberalism and with the principles in the Euston Manifesto. It concerns the issue of class struggle and proletarian dictatorship, about which Norm (at least in his Reader) had little to say.

Frederick Engels

In Marxism, class struggle is both an analytic and a normative doctrine. It is about the working class seizing power and ending the rule of the capitalists. This doctrine means that the rights of one social class are privileged over another. Universal individual rights are no more. As Engels put it, the legal and individual rights of the Enlightenment are “nothing more than the idealized kingdom of the bourgeoisie.”

Any regime that denies rights to some, especially with malleable criteria concerning who is denied those rights, ends up denying rights to everyone. These are the consequences of Marx’s notion of class struggle and the “dictatorship of the proletariat”.

In addition, Marx and Engels argued that the current aims and desires of the proletariat were less important than its historical destiny to abolish capitalism and become the ruling class. They wrote:

It is not a question of what this or that proletarian, or even the whole proletariat, at the moment regards as its aim. It is a question of what the proletariat is, and what, in accordance with this being, it will historically be compelled to do.

This is a clear totalitarian impulse. Marxist revolutionaries are deemed to know better what is in the interests of the working class than the working class itself. Democracy becomes an impediment to the realization of those true interests, about which the masses are not fully aware.

Conclusion: wrong turnings

Alas, Norm was silent in his writings about these problems (as far as I am aware) and I never had the chance to discuss them with him. I would have welcomed that.

The Euston Manifesto was a noble attempt to re-orient the left. Especially in the light of the Corbynista takeover of the Labour Party and the rise of anti-Semitism on the left, it should be re-read today. But sadly the Manifesto initiative was stillborn.

I wonder if one of the reasons for the failure of the Manifesto to keep up the momentum it briefly gained at its launch was the incomplete diagnosis by its promoters of where the left has gone wrong?

The Norman Geras Reader shows that the one leading Eustonite was still under the gravitational pull of Marxism, and reluctant to break from its power. (But Eustonite Alan Johnson took a different view on this important issue.) For whatever reason, The Euston Manifesto became a terminus, rather than the starting point of another journey.

Norm and I were both strong opponents the “anything goes” cultural relativism that overtook the left after the Vietnam War. Nick Cohen shows in his book What’s Left? that cultural relativism was one major wrong turning made by the left in its long evolution from the eighteenth century.

But another was the abandonment of universal human rights, when the influence of Marxism over the left became pre-eminent in the late nineteenth century. That wrong turning must also be recognized and reversed. That necessitates a break from Marxist politics, rather than promoting the unrealizable fantasy of a Marxist-liberal marriage.

We live in increasingly worrying times. We need another Manifesto that builds on Norm’s achievement but takes us still further toward the goal of a more egalitarian and humane society.

1 September 2018

Published by University of Chicago Press


Camic, Charles and Hodgson, Geoffrey M. (eds) (2011) Essential Writings of Thorstein Veblen (London and New York: Routledge).

Cohen, Ben and Gerrard, Eve (eds) (2017) The Norman Geras Reader: ‘What’s There is There’ (Manchester: University of Manchester Press). See esp. pp. 56, 108.

Cohen, Nick (2007) What’s Left? How the Left Lost its Way (London and New York: Harper).

Geras, Norman (1983) Marx and Human Nature: Refutation of a Legend (London: Verso).

Hodgson, Geoffrey M. (1993) Economics and Evolution: Bringing Life Back Into Economics (Cambridge, UK and Ann Arbor, MI: Polity Press and University of Michigan Press).

Hodgson, Geoffrey M. (2013) From Pleasure Machines to Moral Communities: An Evolutionary Economics without Homo Economicus (Chicago: University of Chicago Press).

Hodgson, Geoffrey M. (2015) Conceptualizing Capitalism: Institutions, Evolution, Future (Chicago: University of Chicago Press).

Hodgson, Geoffrey M. (2018) Wrong Turnings: How the Left Got Lost (Chicago: University of Chicago Press).

Hodgson, Geoffrey M. and Knudsen, Thorbjørn (2010) Darwin’s Conjecture: The Search for General Principles of Social and Economic Evolution (Chicago: University of Chicago Press).

Rich, Dave (2016) The Left’s Jewish Problem: Jeremy Corbyn, Israel and Anti-Semitism (London: Biteback).

Posted in Democracy, Labour Party, Left politics, Lenin, Leszek Kolakowski, Markets, Marxism, Socialism

August 25th, 2018 by geoffhodgson1946

Geoffrey M. Hodgson

When it was used by Robert Owen and his followers from the 1830s, the word socialism meant “the abolition of private property” and the adoption of widespread common ownership. That same meaning was accepted by Karl Marx and Frederick Engels. It was used in the twentieth century to describe Marxist regimes in Russia, China, Cuba and elsewhere. The goal of widespread common ownership was inscribed in the aims and values of the UK Labour Party from 1918 to 1995.

The socialist algorithm has eight steps, arranged in a loop:

Step 1: Critique. Point to all the dreadful things that have happened under capitalism, including war, famine, oppression, exploitation, economic inequality and environmental degradation.

Step 2: Dream. Propose a non-existent, imaginary socialism that is highly democratic, peaceful, egalitarian and non-discriminatory. Say that it includes widespread state ownership but avoid going into details on how a large-scale complex system would work, or about the institutional and administrative mechanisms involved, or how ultra-democracy would operate in practice.

Step 3: Ignore. Discount claims by leading economists, political scientists and historians that such a system could not work fairly and humanely, at least unless major roles were retained within the system for markets and private property. Press on regardless to the next step.

Step 4: Solidarise. Choose some regimes in the past that started on the socialist road, such as Russia, China or Cuba. If a new explicitly socialist regime – Venezuela for example – pops up and carries out some policies you like, such as reducing poverty and illiteracy, then give it your support for a while.

Step 5: Blame. When things go wrong with the nominated socialist regimes in Step 4 – including war, famine, oppression, exploitation, economic inequality or environmental degradation – blame foreign intervention, sanctions by capitalist countries or internal counter-revolutionaries. Don’t blame the issues ignored in Step 3.

Step 6: Deny. When it proves difficult to blame everything that goes wrong on foreign intervention, sanctions by capitalist countries or internal counter-revolutionaries, then deny the scale or even the existence of the problems.

Step 7: Rename. At the point where the socialist regimes nominated in Step 4 become so dreadful – with war, famine, oppression, exploitation, economic inequality or environmental degradation – to the point where blame or denial (Steps 5 and 6) are no longer plausible, then declare that these regimes were not, or are no longer, socialist.

Step 8: Return. Collect £200 and go back to Step 1.

This algorithm has variant criteria, particularly over those used to decide what regimes are described as socialist under Step 4. This leads to endless controversies among socialists over the criteria and outcomes of such choices.

The personal determination to deny facts in Step 6 may also waver among some less-hardened comrades.

Further controversy exists among socialists on the criteria deployed in step 7, which trigger the abandonment of the socialist label in particular cases.

The Russian Revolution

The Russian Revolution instigated the socialist algorithm and led to countless runs of the program. It has also illustrated numerous variants.

Some say that it never was “proper socialism” in the first place, for some reason, such as the failure to establish worker control of the factories, or the dissolution of democratic government. These purists move rapidly to Step 7, collect their £200, and move back to Step 1.

Bertrand Russell quickly collected his £200. He visited Russia in 1920 in a Labour Party delegation, where among others he met Lenin. Russell wrote in 1924: “Socialism … means the common ownership of land and capital, together with a democratic form of government.”

Hence, for him, Bolshevik Russia was never socialist. But Russell did not consider the possibility that any concentration of ownership and economic power in the hands of the state would always undermine political democracy. (Step 3.)

Or you may say that the Bolshevik regime was socialist up to the restoration of some private ownership and markets with the New Economic Policy in 1921. Or you could say that socialism ended in Russia with Stalin’s consolidation of power in 1928. Die-hard forgivers of Stalinism would say that it ended in 1991.

To survive, the die-hards need a good dose of denial (Step 6). For example, in 1990 Corbyn’s future aide Seumas Milne suggested that estimates of deaths under Stalin by Robert Conquest and others were too high. This was quickly contradicted when more evidence became available in 1991 showing that earlier estimates, particularly by Conquest, were in the right ball park.

Socialist Scrabble

Imagine the consternation and debate caused in Marxist circles over these problems. The neatest solution is to avoid any proclamation of socialism and describe all Soviet-style regimes as “state capitalist”. This is the ingenious solution of Tony Cliff and others. Cliff was the founder of what eventually became the Socialist Workers Party.

The trouble with this solution is that the definition of capitalism becomes so flattened and widened that it bears less resemblance to Marx’s analysis in Capital. This disparity becomes more severe when the importance for capitalism of financial markets is taken into account, as highlighted by Joseph Schumpeter and others. Competitive financial markets played no more than a marginal role in Russia from 1917 to 1991.

Leon Trotsky

Leon Trotsky was more subtle. He introduced the concept of “degenerated workers state”. This term signalled that the working class had gained power, but the system had become corrupted by an over-bearing bureaucracy. For Trotsky, Soviet Russia was neither capitalist nor socialist.

But true to his Marxist credentials, Trotsky had to argue that a system where a rising class was neither in nor out of power had to be unstable – it could only last a few years.

Trotsky was murdered in 1940, so he left that problem to his followers. This unstable “transitional” regime lasted for well over half a century, defying Trotsky’s analysis.

And so it goes on. There are numerous variants, and many moves on the socialist scrabble board – playing with labels or names.

Socialist Venezuela

The drama in Venezuela is playing out before us. Many – but not all – socialists hailed the election of the radical socialist Hugo Chávez in 1998.

In 2004 a number of intellectuals and politicians signed a “manifesto” declaring that they would vote for Chávez if they were Venezuelans. The signatories included Tariq Ali, Perry Anderson, Tony Benn, George Galloway, Eric Hobsbawm, Ken Livingstone, Naomi Klein, Ken Loach, John Pilger and Harold Pinter.

Jeremy Corbyn and Hugo Chávez

Jeremy Corbyn’s loyalty to Venezuelan socialism endured and survived the death of Chávez in 2013. He attended a vigil following the death of Chávez, hailing him as an “inspiration to all of us fighting back against austerity and neo-liberal economics in Europe”.

As late as 2015, when Venezuela was in ever-deepening crisis and human rights violations were abundant, Corbyn’s enthusiasm for the regime was undiminished. He remarked:

we celebrate, and it is a cause for celebration, the achievements of Venezuela, in jobs, in housing, in health, in education, but above all its role in the whole world … we recognise what they have achieved.

Similarly in 2014, John McDonnell (who is now Shadow Chancellor of the Exchequer under the Labour opposition led by Corbyn) praised the Venezuelan regime: “Here you had the contrast between capitalism in crisis and socialism in action.

Blame then rename

As the problems with the regime of Chávez grew in intensity, Step 5 (Blame) came into force. There may have been involvement by the CIA, particularly in the brief coup that overthrew Chávez for a few days in 2002. But hostilities from outside were relatively mild, particularly compared with Civil War that followed the Bolshevik Revolution in 1917. Venezuela continues to sell oil to the US and several other countries. Venezuela buys arms and military equipment from the UK, as well as from Russia and China.

Neither external nor internal opposition can adequately explain the unfolding catastrophe in Venezuela. In fact, the problems started at the beginning. Chávez manipulated electoral mandates to undermine democratic checks and balances, to increase executive power, to neuter the Supreme Court, to make criticism of his government illegal and to increase censorship.

The outcome after 2013 was the disastrous regime of Nicolás Maduro. Venezuela saw famine, oppression, exploitation, economic inequality and environmental degradation.

By 2018 there was hyper-inflation of around a million per cent per annum, and about three million Venezuelans – about 10 per cent of the population – had emigrated.

Despite his 2014 declaration of support quoted above, John McDonnell has now moved to Step 7, helped by a little more denial on the way. On 20 May 2018 he declared “I don’t think it [Venezuela] was a socialist country”. McDonnell has collected his £200 and returned to Step 1.

Conclusion: back to the beginning

Obviously, it all starts with Step 1. Let us pause here for a while. There is a lot wrong with capitalism. But let us distinguish between capitalist democracies and autocracies.

Democracy is a key variable. The Biblical Four Horsemen of the Apocalypse are conflict, war, famine and death. As I have outlined in my book Wrong Turnings, from historical experience the antidote is clear: the chances of war, famine and premature death can be greatly diminished through a society with democratic institutions that defends +universal human rights.

Many of the horrors of capitalism occurred under undemocratic regimes. Wars between democracies are relatively rare. Famines are much less common under capitalist democracies. Consequently, the reduction of death and misery from famine and war is best pursued by opposition to all forms of despotism, whether capitalist or Communist.

This does not mean that capitalist democracies are always peaceful and unoppressive. Far from it. What it means is that there is plentiful evidence that democracy reduces the chances of famine, environmental degradation, premature death and war. And, for explicable reasons, no socialist country has lasted as a democracy.

Dreaming (Step 2) is fine. But we have to practical and realistic. Rather than ignoring in Step 3, we need to understand. One of the major problems with socialism – at least in its statist and non-market versions – is that a concentration of economic power in the hands of the state leads unavoidably to a dangerous and undemocratic concentration of political power.

“There’s no food”

In the Venezuelan case, the concentration of political power, which was designed to achieve statist control of the economy, had adverse effects well before wholesale public ownership was achieved.

Either way, attempts to move toward socialism weaken the economic sources of countervailing power and undermine the socio-economic foundations of democracy. Despite pronouncements to the contrary, the centralizing mission of statist socialism always leads to the destruction of necessary checks and balances.

In history there has been no exception to this outcome. We may dream of socialist democracy, but in the end we must learn from history and from analysts who show the dangers or impracticalities of socialist solutions to the problems in the world. In short, statist socialism cannot co-exist with democracy and with the protection of human rights.

25 August 2018

Minor edits – 26 August 2018.

Published by University of Chicago Press


Cliff, Tony (1955) Stalinist Russia: A Marxist Analysis (London: Michael Kidron).

Conquest, Robert (1968) The Great Terror (London: Macmillan).

Conquest, Robert (1986) The Harvest of Sorrow: Soviet Collectivization and the Terror-Famine (Oxford: Oxford University Press).

Griffiths, Dan (ed.) (1924) What is Socialism? A Symposium (London, Richards).

Hodgson, Geoffrey M. (2015) Conceptualizing Capitalism: Institutions, Evolution, Future (Chicago: University of Chicago Press).

Hodgson, Geoffrey M. (2018) Wrong Turnings: How the Left Got Lost (Chicago: University of Chicago Press).

Schumpeter, Joseph A. (1942) Capitalism, Socialism and Democracy (London: George Allen and Unwin).

Trotsky, Leon D. (1937) The Revolution Betrayed: What is the Soviet Union and Where is it Going? (London: Faber and Faber).

Posted in Bertrand Russell, Common ownership, Democracy, Jeremy Corbyn, Karl Marx, Labour Party, Left politics, Lenin, Liberalism, Markets, Nationalization, Private enterprise, Property, Robert Owen, Socialism, Soviet Union

August 19th, 2018 by geoffhodgson1946

More on the Seven Dimensions of Liberalism


Geoffrey M. Hodgson


The common core of all varieties of liberalism is the stress on individual liberty and universal rights, including the rights to private property and to freedom of expression. These universal rights and liberties require equality under the law, under a competent legal system that protects rights and pursues justice.

In a previous blog I laid out Seven Dimensions of Liberalism. The present blog extends that analysis by considering different varieties of liberalism within this seven-dimensional space. I contrast what (in forensic mood) might be described as neoliberalism with what I call liberal solidarity.

Classical liberalism

There are several possible names come to mind as possible labels for the highly varied constituent territories of liberalism. Terms such as classical liberalism, new liberalism, social liberalism, neoliberalism and libertarianism should be considered. But all these labels have their problems.

Adam Smith

Consider classical liberalism. This is typically applied to foundational liberal thought from John Locke, through Adam Smith and Jeremy Bentham to John Stuart Mill. But there are profound divisions within classical liberalism.

Thomas Paine’s pursuit of measures to reduce inequality is unmatched by his liberal contemporaries.

Adam Smith’s emphasis on the importance of “moral sentiments” and justice contrasts greatly with the reductionist-utilitarian approaches developed by Hume and Bentham and adopted (albeit with reservations) by Mill.

Apart from the emphasis on individual rights including private property, the classical liberals agreed on the need for a small state. But they lived in a period when the state and its tax levels were much smaller than they became in the twentieth century.

We cannot automatically assumed that they would have taken the same small-state view in the present context, especially if they were responsive to practical experiment and historical experience.

Consequently, classical liberalism does not denote one distinctive type or phase of liberalism. The original Liberalism from the seventeenth to the mid-nineteenth century contained widely diverging variants.

New liberalism and other labels

A major turn in liberal thought was foreshadowed by Mill and developed in the later decades of the nineteenth century and the early twentieth century by Thomas H. Green, Leonard T. Hobhouse and John A. Hobson in the UK, and in the US by Lester Frank Ward, John Dewey and others.

These “new liberals” saw individual liberty as something achievable only under favourable social and economic conditions. Poverty and ignorance were barren soils for individual freedom and fulfilment. They argued that individual flourishing required the development of an education system, a welfare state and other state action to reduce unemployment and poverty.

John A Hobson

Thinkers such as Green, Hobhouse, Hobson, Ward and Dewey have been described as new liberals. But their ideas are no longer new and the label is in little use today. It also risks confusion with the now-ubiquitous and over-stretched swear-word of neoliberalism.

Social liberalism is another term that has been to describe the strain of liberal thinking – from Green to Dewey – that pursued greater state intervention and a welfare state.

But a problem with this label lies in the multiple meanings of the word social. Many used social liberalism to signal an emphasis on the need for cooperation between individuals through social arrangements to further human fulfilment. The word social here is used in a broad and inclusive sense.

An alternative understanding of social is exclusive: social is regarded as an antithesis to economic. This commonplace but problematic dichotomy contrasts the economic sphere of business and profit-seeking with the social sphere of the family, non-market relations, reciprocity and so on.

This enabled an alternative interpretation of social liberalism as liberalism applied to the narrowly-conceived social sphere. It would involve, for example, the promotion of homosexual rights and the decriminalization of the use of recreational drugs. Worthy as those aims may be, this is a much narrower agenda than that promoted by social liberalism in the broader sense.

Another option is the word solidarism. Inspired by Émile Durkheim and Léon Bourgeois, ideas emerged in France that were similar to and at about the same time as the new liberalism of Hobhouse and Hobson in Britain.

The solidarists criticized extreme laissez-faire and argued that individuals had a debt to society as a whole, which should be repaid through taxation and social welfare schemes. But solidarism in France took a distinctive form, putting more limited emphasis on state intervention than the proposals of some of their British counterparts.

Ambiguities of social democracy

A final term to be considered here is social democracy. This has shifted more successfully in meaning than socialism, but originally they amounted to more or less the same thing. Many of the early social democratic parties were led by Marxists, including the important Social Democratic Workers’ Party of Germany, founded in 1869. Although some social democrats favoured peaceful reform rather than violent revolution, at that time they mostly agreed on the goal of large-scale common ownership.

Harold Wilson

During the twentieth century the usage of the term social democracy shifted radically. After the Second World War it came to mean the promotion of greater economic equality and social justice within a capitalist economy. It also connoted a political strategy orientated toward the interests of the trade unions and the working class.

The term social democracy still carries this historical and strategic baggage. It has been eschewed by some because of its links with socialism. Others argue that its strategic, class-orientated vision has become obsolete. Another problem is that the word social does not make a clear addition to democracy, which few would oppose.

Post-war social-democratic policies are challenged by the fragmentation of their traditional base in the organized working class and by the heightened forces of globalization.

Consequently, while a reformed and reinvigorated social democracy may have some mileage, I suggest we consider the alternative term liberal solidarity to describe an important zone within liberalism. We should examine its principles and its agenda for reform. But first it is necessary to deal with the tricky label and substance of neoliberalism.

Original diversity within the Mont Pèlerin Society

The Mont Pèlerin Society changed in substance and direction. It began under a different name in the 1930s and was first convened under its current name in 1947. It was then an attempt to convene different kinds of liberals in defence of a liberal market economy, just after the defeat of fascist tyranny, during an expansion of Communist totalitarianism, and while witnessing the rise of statist socialist ideas in Western Europe and elsewhere. Liberalism broadly was on the rocks: it needed its defenders.

Michael Polanyi

Michael Polanyi (the brother of Karl Polanyi) advocated Keynesian macroeconomics in a market economy, alongside a radical redistribution of income and wealth. He rejected a universal reliance on market solutions, seeing it as a mirror image of the socialist panacea of planning and public ownership. He did not mince his words against this “crude Liberalism”:

“For a Liberalism which believes in preserving every evil consequence of free trading, and objects in principle to every sort of State enterprise, is contrary to the very principles of civilization. … The protection given to barbarous anarchy in the illusion of vindicating freedom, as demanded by the doctrine of laissez faire, has been most effective in bringing contempt on the name of freedom … .”

Although he attended the first meeting of the Mont Pèlerin Society, Polanyi had drifted away by 1955, stressing its inadequate solutions to the problem of unemployment and its promotion of a narrow view of liberty as the absence of coercion, neglecting the need to prioritize human self-realization and development.

In its early years, the Mont Pèlerin Society hosted debates on the possible role of the state in promoting welfare, on financial stability, on economic justice, and on the moral limits to markets. Like Polanyi and other early members of the society, Wilhelm Röpke argued that the state was necessary to sustain the institutional infrastructure of a market economy. The state should serve as a rule-maker, enforcer of competition, and provider of basic social security. Röpke’s ideas were highly influential for those laying the foundations of the post war West German economy.

While they received a more sympathy from Hayek, Ludwig Mises regarded Röpke’s views as “outright interventionist”. Mises became so frustrated with these arguments in favour of a major role for the state that he stormed out of a Mont Pèlerin Society meeting shouting: “You’re all a bunch of socialists.”

The rise of modern neoliberalism

Angus Burgin’s history of the society shows how its early period of relative inclusivity was followed by schisms, departures, and a narrowing of opinion. People like Polanyi and Röpke became inactive. Eventually the primary locus of the Mont Pèlerin Society shifted to the US, with greatly increased corporate funding under the rising intellectual leadership of Milton Friedman.

Milton Friedman

Hence the Mont Pèlerin Society evolved from a broad liberal forum to one focused on promoting a narrow version of liberalism that is more redolent of Herbert Spencer than of Adam Smith, Thomas Paine or John Stuart Mill. This ultra-individualist liberalism entailed a narrow definition of liberty as the absence of coercion, it relegated the goal of democracy, it neglected economic inequality, it overlooked the limits to markets, it saw very limited grounds for state welfare provision and intervention in financial markets, and it stressed self-interest rather than moral motivation.

But in the seventh dimension it tolerated a multiplicity of positions, as exemplified by Friedman’s opposition to the Iraq War. In all of the seven dimensions of liberalism, the post-1970 position of the Friedman-led Mont Pèlerin Society was redolent of Spencer, but without some of the latter’s Victorian idiosyncrasies. In the first six dimensions, this post-1970 neoliberalism is very different from liberal solidarity.

It is only after the 1960s that the Mont Pèlerin Society acquired a narrower identity, which at a pinch might be described as neoliberalism. Here Mirowski is onto something: “Neoliberals seek to transcend the intolerable contradiction by treating politics as if it were a market and promoting an economic theory of democracy.” In other words this neoliberalism reduces, all of politics, law and civil society as markets, and are analysed using market categories.

Neoliberalism’s affinity with Marxism

This neoliberalism has an odd similarity with Marxism, despite other major differences in theory and policy. Marx and Engels also reduced civil society to economic matters of money and trade. Marx wrote in 1843: “Practical need, egoism, is the principle of civil society … The god of practical need and self-interest is money.”

Karl Marx

Civil society, for Marx, was the individualistic realm of money and greed. Hence Marx concluded that “the anatomy of civil society is to be sought in political economy.” The analysis of the political, legal and social spheres was to be achieved with an economics based on the assumption of individual self-interest.

Furthermore, the state, law and politics under capitalism were made analytically subservient to this dismembered, economistic vision of civil society.

Accordingly, Frederick Engels wrote in 1886 that under capitalism “the State – the political order – is the subordinate, and civil society – the realm of economic relations – the decisive element.” Everything was deemed a matter of greed and commerce, to be understood through economic analysis.

Hence, in its theory of capitalism, classical Marxism was a harbinger of modern neoliberalism, reducing everything to market relations. There was no defence of civil society in its own right.

When attempts were made to build socialism on Marxist principles, not only markets were minimized but also civil society was virtually destroyed. Before 1989, the restoration of civil society was one of the foremost demands of the dissident movements in Eastern Europe.

Certainly there are more sophisticated and less reductionist treatments by Marxists of civil society and the state, not least by Antonio Gramsci. But Marx and Engels, alongside some neoliberals, embraced economic reductionism. Everything turns into the economics of trade, eclipsing the autonomy of politics and law, and neglecting the vital importance of non-commercial interaction and association within civil society.

Neoliberalism versus liberal solidarity

On these vital issues, liberal solidarity stresses its differences from both neoliberalism and classical Marxism. It does not treat the individual purely as a self-interested, market-oriented maximizer. It is committed to democracy as a distinctive source of legitimation for government, and a means of individual and social development (dimension 2), not as a marketplace for power.

Liberal solidarity stresses the feasible and moral limits to markets (dimension 4). It upholds a view of the individual that combines measures of self-interest with a moral concern for justice and fairness (dimension 6). On all these points it is distinct from these other doctrines.

Today, liberal solidarity must emphasise its radical differences from both post-1970 neoliberalism and from Marxism. This is made extremely difficult in a leftist intellectual context when any defence of markets or private enterprise, to any extent or degree, is pushed aside as neoliberal. Current cavalier uses of the term do much more harm than good.

Many so-called anti-neoliberals are also anti-liberals. They prioritize neither liberty nor freedom of expression. They offer no defence of private enterprise or markets, to any extent or in any form. They promote a state-dominated economy, which we know from history will always threaten freedom and human rights. They believe they are principled. They may have good intentions. To quote from their mentor Lenin: “The road to hell is paved with good intentions.” But as Marxists fail to understand, the only principled and effective defence of human rights is some form of liberalism.

Liberalism has to be fortified, but not in all of its forms. Liberal solidarity is the radical alternative to the illiberal or undemocratic populisms of the left or right. It can address the problems created by large corporate interests, by the power of undemocratic capitalist technocrats or by incipient dictatorships. It emphasises the importance of markets and private property, but without regarding them as universal panaceas. It retains uppermost the importance of human rights and human cooperation, with the goal of human flourishing and social development.


19 August 2018

Published by University of Chicago Press in January 2018



Burgin, Angus (2012) The Great Persuasion: Reinventing Free Markets since the Depression (Cambridge MA: Harvard University Press). See pp. 16, 80-86, 121.

Hodgson, Geoffrey M. (2015) Conceptualizing Capitalism: Institutions, Evolution, Future (Chicago: University of Chicago Press).

Hodgson, Geoffrey M. (2018) Wrong Turnings: How the Left Got Lost (Chicago: University of Chicago Press).

Jacobs, Struan and Mullins, Phil (2016) ‘Friedrich Hayek and Michael Polanyi in Correspondence’, History of European Ideas, 42(1), pp. 107-30.

Marx, Karl and Engels, Frederick (1962) Selected Works in Two Volumes (London: Lawrence and Wishart). See vol. 1, pp. 362, 394-5.

Marx, Karl and Engels, Frederick (1975) Karl Marx and Frederick Engels, Collected Works, Vol. 3, Marx and Engels: 1843-1844 (London: Lawrence and Wishart). See p. 172.

Mirowski, Philip (1998) ‘Economics, Science and Knowledge: Polanyi vs. Hayek’, Tradition and Discovery: The Polanyi Society Periodical, 25(1), pp. 29-42.

Mirowski, Philip (2009) ‘Postface: Defining Neoliberalism’, Mirowski, Philip and Plehwe, Dieter (eds) (2009) The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective (Cambridge MA: Harvard University Press), pp. 417-55. See p. 456.

Mirowski, Philip (2013) Never Let a Serious Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown (London and New York: Verso). See p. 71.

Polanyi, Michael (1940) The Contempt of Freedom: The Russian Experiment and After (London: Watts). See pp. 35 ff., 57-58.

Polanyi, Michael (1945) Full Employment and Free Trade (Cambridge: Cambridge University Press). See pp. 142-6.

Polanyi, Michael (1951) The Logic of Liberty: Reflections and Rejoinders (London: Routledge and Kegan Paul).

Posted in Democracy, Karl Marx, Left politics, Lenin, Liberalism, Ludwig von Mises, Markets, Michael Polanyi, Neoliberalism, Philip Mirowski, Private enterprise, Property, Right politics, Socialism

August 1st, 2018 by geoffhodgson1946


Beyond its shared stress on liberty and rights, liberalism comes in many different forms. One of these varieties is liberal solidarity.


Geoffrey M. Hodgson


All versions of liberalism stress individual liberty and universal rights, including the rights to private property and to freedom of expression. These universal rights and liberties require equality under the law, under a competent legal system that protects those rights and pursues justice.

Original conservativism differs from liberalism because it stresses established or religious authority and tradition over rights. Socialism generally differs from liberalism because it downgrades the right to private property. But there is no historical case where personal and civil liberties have existed without extensive rights of private property.

Statist socialism further differs from liberalism also because it concentrates politico-economic power in the hands of the state, thus undermining countervailing power, which is necessary to sustain democracy and individual rights. Marxism differs from liberalism to an even greater degree, because it regards all liberal rights as bourgeois: it rejects the idea of universal individual rights in favour of the class rule of the proletariat.

Liberalism was broadly defined in its struggles against despotism. But once autocracy is removed, and freedom and legal equality are established, then liberalism as a whole lacks a further common purpose, other than the preservation or consolidation of those liberal gains. At this point, the wide liberal coalition divides into multiple zones, exploring different districts of their spacious common territory, and falling on different sides of key dilemmas.

Hence the Enlightenment triumph of liberalism gave way to rival liberalisms, each stressing different priorities or visions of the future. These differences range across multiple dimensions in conceptual hyperspace.

While exploring seven dimensions of this hyperspace, I accent a particular variety of liberalism that I call liberal solidarity.

The seven dimensions

Consider the following seven vital dilemmas:

1. Broad versus narrow conceptions of liberty.

The narrow definition of liberty, promoted by Freidrich Hayek and Milton Friedman among others, is the absence of coercion. Other liberals – including John Stuart Mill, Michael Polanyi, Isaiah Berlin and Amartya Sen – argued that this is insufficient. They asked us to consider the conditions enabling the individual to appraise his or circumstances and then to act freely, typically in cooperation with others. These conditions constitute positive or public liberty, in contrast to the negative or private liberty provided by the absence of coercion. As well as the capacities for choice and action, some writers argue that liberty is also about the opportunities for self-development and for human flourishing.

2. Degrees of commitment to representative political democracy.

Most liberals support representative political democracy, as long as it does not overturn basic human rights, including the rights of minorities. But some liberals, such as Ludwig Mises and Hayek, have regarded democracy as dispensable under specific conditions, believing that the preservation of private property and markets are more important. The counter argument is that democracy is strongly correlated with economic development, the protection of human rights, and the absence of war and famine. Hence democracy is vital for a healthy, tolerant and open society.

3. Degrees of emphasis on economic equality.

Thomas Paine was a liberal who stressed the interdependence of individuals in a free society. Hence, given our debt to others, we are obliged to pay taxes for the common good. Also John Stuart Mill argued there should be some redistribution of inherited wealth. Against libertarian individualists, many liberals defend responsible trade unions as a way of empowering working people and reducing inequality. These are cases of liberal solidarity rather than atomistic individualism.

4. Possible limits to choice and markets.

While liberals generally stress the importance of individual choice, in both trade and politics, some also stress the practical and moral boundaries to contracts and to markets. Today we condemn the holding and trading of slaves. For democracy to be uncorrupt, there should not be markets for the votes of ordinary people or politicians. Other market arrangements are challengeable, on moral or practical grounds, suggesting that contracts and markets are not the solution to every problem.

5. Grounds for state intervention and a welfare state.

Some liberals, including John A. Hobson and John Dewey, saw the provision of adequate healthcare and education as vital for individual self-determination and flourishing. Individuals should also be as free as possible from the anonymous coercions of ignorance, destitution and illness. Hence the liberals David Lloyd George and William Beveridge built the foundations of the welfare state in the UK. John Maynard Keynes pointed to the need for the state to intervene to prevent financial crashes and minimize unemployment. Many modern liberals also accept the legitimacy of judicious state action to mitigate climate change.

By the above five criteria, liberal solidarity recognizes liberty as more than the absence of coercion, defends political democracy, attempts to reduce extremes of economic inequality, and conceives of a larger role for the state than small-state versions of liberalism. It promotes a mixed economy including some public ownership and a variety of forms of private enterprise. The mixture would include worker cooperatives (which are the most viable positive legacy of small socialism).

Liberal solidarity counters the original liberal emphasis on minimal government. Some state intervention is necessitated by the limitations of markets and by growing complexity. Nevertheless, all liberals acknowledge the dangers of excessive bureaucracy and concentrations of state power, and they call for mechanisms of scrutiny and accountability, as well as for countervailing powers.

6. Self-interest versus cooperation and morality.

Several liberals have argued that social order emerges out of the interactions of self-interested, pleasure-maximizing individuals. But this is not a universal view among liberals. While recognizing the selfish aspects of human nature and the incentives they offer for trade and innovation, many liberals stress the importance of morality, justice or duty. They argue that adequate social cohesion cannot be achieved on the basis of selfishness alone. Adam Smith expressed this view: he was not an unalloyed advocate of individual selfishness. Charles Darwin – who politically was a liberal – explained how, alongside a measure of self-interest, morality and cooperation were products of human evolution, and thus part of our nature. Hobson took up this Darwinian view, also underlining the importance of moral motivation. Relatedly, Keynes saw the Benthamite utilitarian calculus of pleasure-seeking, as “the worm which has been gnawing the insides of modern civilisation and is responsible for the present moral decay.” The motivational bases of liberal solidarity are morality, sympathy and justice, and not simply personal satisfaction or self-interest.

7. Nationalism versus internationalism and openness.

Like socialism and conservativism, liberalism has been divided on questions of foreign policy. Socialists, conservatives and liberals have argued for and against specific wars, for or against imperialism or colonialism, for or against the idea of exporting favoured institutions by invading other countries with armed force. They have also been internally divided on immigration policy, advocating different degrees of restriction or free movement.

Addressing dimension six, liberal solidarity emphasises our potential for cooperation and moral judgment, rather than focusing on self-interest alone. In regard to dimension seven, liberal solidarity opposes imperialism and colonialism. It stresses the importance of social inclusion and the benefits of free movement.

Liberals, Conservatives and Republicans

From the beginning of the twentieth century, in the UK and the US, liberalism became more interventionist. Versions of liberalism prominent in the UK and US are closer to liberal solidarity than some variants in Continental Europe.

When unfettered-market, minimal-state versions of liberalism re-emerged in the UK and US, and became more prominent in the 1970s, they had to find different homes. They took over the Conservative Party in the UK and the Republican Party in the US. Hence Margaret Thatcher was elected as a Conservative Prime Minister in 1979 and Ronald Reagan as a Republican President in 1980. In some their ideas they sounded like nineteenth-century liberals: Whigs became Tories.

But their adoption of unfettered-market ideology was partial, and often compromised when traditional conservative values were threatened. Supported by Thatcher, Reagan ramped up military spending. Their nationalism was heightened when it came to foreign policy and international trade. They retained restrictions on recreational drugs or prostitution. They stressed ‘family values’ as much as rampant individualism.

Like others, these two parties are coalitions, involving unfettered-marketeers, nationalists and traditional conservatives. The election of Donald Trump as US President in 2016 shows the strength of the conservative and nationalist strain among Republicans. Trump is no liberal: he advocates torture, attacks minorities, threatens the press, imposes tariffs and pursues a version of economic nationalism.

Thatcher and Reagan overlooked the absence of democracy in Augusto Pinochet’s Chile and in Apartheid South Africa, and supported stronger military and executive powers. As Andrew Gamble put it, Thatcher and Reagan promoted a ‘free economy and a strong state’.

Thatcher and Reagan were inspired by leading intellectuals such as Hayek and Friedman, who had been working for decades to restore the influence of unfettered-market liberalism. But neither Hayek nor Friedman fits exactly into the Thatcher-Reagan mould. Friedman, for example, advocated the decriminalization of drugs and opposed compulsory military service. He also opposed the Gulf War of 1990-1991 and the Iraq Invasion of 2003.

Hayek voiced partial support for a welfare state. Although he did not support redistributive taxation to reduce inequality, he advocated legislation to limit working hours, state assistance for social and health insurance, state-financed education and research, a guaranteed basic income, and other welfare measures. At least once, Hayek also accepted Keynesian-style, counter-cyclic government strategy to deal with fluctuations in economic activity. Consequently there was some significant difference between Hayek and other libertarians.

Challenges for liberal solidarity

Having set out the large, seven-dimensional hyperspace and explored a few of the important positions within it, it is clear that the depiction of liberalism as broad church is an understatement. The potential variation within liberalism is huge. That is both an asset and a problem. Each variety of liberalism faces the difficulty of distinguishing itself from others. We need to subdivide liberalism’s massive territory if we are to navigate and explore different positions. Each important position within the large space needs to be differentiated from others.

A later blog will further explore the seven-dimensional hyperspace of liberalism and develop the case in favour of liberal solidarity. I shall also show a dramatic contrast with what is often described as neoliberalism.


1 August 2018

Published by University of Chicago Press in January 2018



Gamble, Andrew (1988) The Free Economy and the Strong State: The Politics of Thatcherism (London and New York: Palgrave Macmillan).

Hodgson, Geoffrey M. (2013) From Pleasure Machines to Moral Communities: An Evolutionary Economics without Homo Economicus (Chicago: University of Chicago Press).

Hodgson, Geoffrey M. (2015) Conceptualizing Capitalism: Institutions, Evolution, Future (Chicago: University of Chicago Press).

Hodgson, Geoffrey M. (2018) Wrong Turnings: How the Left Got Lost (Chicago: University of Chicago Press).

Posted in Democracy, Left politics, Liberalism, Markets, Michael Polanyi, Neoliberalism, Private enterprise, Property

May 5th, 2018 by geoffhodgson1946

Geoffrey M. Hodgson


Karl Marx was born on 5 May 1818. He was one of the greatest social scientists in human history. The intellectual structure of his thought has affected our understanding of history, of economic development and of political power. All modern scholars of significance have to define their position in relation to Marx’s monumental achievement.

Many of Marx’s predictions were wrong. He was mistaken, for example, about the general deskilling of the working class. On the contrary, although many remain unskilled, average skill levels have increased. Furthermore, although many remain desperately poor, the average standard of living of the working class has vastly increased since his time.

On the other hand, some of Marx’s predictions have been vindicated. He characterized the nature of the capitalist system more acutely than any of his predecessors and he predicted its spread over the entire world. He saw capitalism a dynamic system that broke down archaic institutions and barriers to trade.

Marx also focused on the generation of inequality under capitalism, which has increased and is recognized as a serious problem.

Marx got some forecasts wrong and some right. Prediction is far from everything in social science. What towers above all is his contribution to our understanding of the inner dynamics of capitalism. With all its shortcomings and theoretical flaws, it remains a huge achievement.

Was Marx the author of the Marxist tragedy?

Let us turn from Marx the social scientist to Marx the politician. Remarkably, from 1917 to the present day, a number of regimes have been set up by revolutionary activists who have claimed to be Marxists. All of these turned sour: these totalitarian regimes led to millions of deaths. Estimates vary. 90 million is on the conservative side, with about 65 million in Mao’s China alone.

Marxism has various ideological immune systems to deal with these brutal facts. One gambit is to blame it on the hostile interventions of foreign powers. But it is implausible that these alone are responsible for the outcomes. No foreign intervention prompted Mao’s Great Leap Forward of his Cultural Revolution, for example, which together led to about 40 million deaths.

Leon Trotsky

Another argument – due to Leon Trotsky – is to blame it on the creation by tyrannical leaders such as Stalin of a bureaucratic caste that denied the working class any democratic power. But this implausibly assumes that a huge nationwide bureaucracy can somehow be run on the basis of meaningful votes on every important decision. No-one with any practical experience of a large organization would entertain such a fantasy.

A more colourful recent excuse is due to Yanis Varoufakis, the influential Greek academic and politician. He argued that the Marxist texts were too powerful. As a result they attracted devious opportunists who rode the Marxist rhetoric for “their own advantage.”

With it, they might abuse other comrades, build their own power base, gain positions of influence, bed impressionable students, take control of the politburo and imprison anyone who resists them.

The problem, it seems, was that Karl Marx and Frederick Engels were too powerful with their prose. If only they had written more turgid texts – then millions would have been saved from the famines and the Gulags.

Seriously, though, the greater problem is not the power of the language, but what it says and what it empowers and enables. Marxism creates a sense of historical destiny, where the creation of socialism is a seemingly obvious solution to the ills of the world, which will defied only by the rich, whose resistance must be crushed.

Marx bears some responsibility for the murdered millions

At least two major aspects of Marx’s thought removed protections of human rights and paved the way for brutal totalitarianism.

The first was his doctrine of class struggle. Analytically, this may have some value and it is subject to academic debate. But it was also a normative doctrine, about the working class seizing power and ending the rule of the capitalists.

Marx and Engels argued that the current aims and desires of the proletariat were less important than its historical destiny to abolish capitalism and become the ruling class. They wrote:

It is not a question of what this or that proletarian, or even the whole proletariat, at the moment regards as its aim. It is a question of what the proletariat is, and what, in accordance with this being, it will historically be compelled to do.

This is the first totalitarian impulse. Marxist revolutionaries are deemed to know better what is in the interests of the working class than the working class itself. Democracy becomes an impediment to the realization of those true interests, about which the masses are not fully aware.

The normative doctrine of class struggle has another outcome. It means that the rights of one social class are privileged over another. Universal individual rights are no more. As Engels put it, legal and individual rights are “nothing more than the idealized kingdom of the bourgeoisie.”

Their normative arguments in favour of socialism are not based on any alleged rights. Instead, socialism is seen as historic destiny. Marx tried to show that crises within capitalism are recurrent and inevitable, and that capitalism digs its own grave by enlarging and empowering the working class.

The consequence of this class deprivation of human rights was enshrined in law under Marxist-socialist regimes. The 1918 Constitution of the young Soviet regime distinguished between the rights of the workers and the rights of others. The Soviet state also announced that it

deprives all individuals and groups of rights which could be utilized by them to the detriment of the socialist revolution.”

A major problem here was that the criteria used to decide what was detrimental were unspecified, opening the door to arbitrary repression by the authorities. This is exactly what happened.

A regime that denies rights to some, especially with malleable criteria concerning who is denied those rights, ends up denying rights to everyone. These are the consequences of Marx’s “dictatorship of the proletariat”.

A full concentration of economic power leads to totalitarianism

A second aspect of Marx’s thought that promoted totalitarianism concerns the economy.

Marx and Engels advocated the abolition of private property and markets, and the concentration of all economic power in the hands of the state. They welcomed efforts “to centralize all instruments of production in the hands of the state” and looked forward to a time when “all production has been concentrated in the hands of a vast association of the whole nation”.

But as subsequent experiences from Russia to Venezuela illustrate, such a massive concentration of economic power requires for its enforcement, and sustains as an outcome, a massive concentration of political power that is intolerant of democracy. The good intentions or democratic inclinations of leaders are not enough. Those most hungry for power, and least affected by moral qualms in exercising it, will eventually rise to the top.

There is a widespread opinion among non-Marxist social scientists (including Barrington Moore, Douglass North and Francis Fukuyama) that democracy requires countervailing political and economic power to have a chance of survival. In Marxist terms, if the economic “base” determines the “superstructure”, then a pluralist polity requires a pluralist (or mixed) economy, not one that is overshadowed by a massive state.

A complete concentration of political and economic power in the hands of the state, which Marx and Engels advocated with enthusiasm as well as eloquence, always requires and enables a despotic political regime. There are no exceptions.

Leszek Kolakowski

Over forty years ago, Leszek Kolakowski was an Eastern European dissident and a perceptive critic of Marxism. He wrote:

“My suspicion is that this was both Marx’s anticipation of perfect unity of mankind and his mythology of the historically privileged proletarian consciousness which were responsible for his theory being eventually turned into an ideology of the totalitarian movement: not because he conceived of it in such terms, but because its basic values could hardly be materialized otherwise.”

Kolakowski was right. Many have still to learn the tragic lessons of Marxist failure in practice, as well as of its partial but flawed analytical success.

Critics will say that giving Marx some blame for the atrocities of the twentieth century is like trying to blame Jesus for the atrocities of the Spanish Inquisition. They are wrong, Jesus never advocated class war or a concentration of economic power in the hands of the state, both of which create the conditions for tyranny.

5 May 2018

Minor edits – 6 May 2018


This book elaborates on the issues raised in this blog:

Published by University of Chicago Press in January 2018


Courtois, Stéphane, Werth, Nicolas, Panné, Jean-Louis, Packowski, Andrzej, Bartošek, and Margolin, Jean-Louis (1999) The Black Book of Communism: Crimes, Terror, Repression (Cambridge MA: Harvard University Press).

Fukuyama, Francis (2011) The Origins of Political Order: From Prehuman Times to the French Revolution (London and New York: Profile Books and Farrar, Straus and Giroux).

Hodgson, Geoffrey M. (2006) Economics in the Shadows of Darwin and Marx: Essays on Institutional and Evolutionary Themes (Cheltenham: Edward Elgar).

Hodgson, Geoffrey M. (2015) Conceptualizing Capitalism: Institutions, Evolution, Future (Chicago: University of Chicago Press).

Hodgson, Geoffrey M. (2018) Wrong Turnings: How the Left Got Lost (Chicago: University of Chicago Press).

Kolakowski, Leszek (1977) ‘Marxist Roots of Stalinism’, in Robert C. Tucker (ed.) (1977) Stalinism: Essays in Historical Interpretation (New York: Norton), pp. 283-98.

Moore, Barrington, Jr (1966) Social Origins of Dictatorship and Democracy: Lord and Peasant in the Making of the Modern World (London: Allen Lane).

North, Douglass C., Wallis, John Joseph and Weingast, Barry R. (2009) Violence and Social Orders: A Conceptual Framework for Interpreting Recorded Human History (Cambridge and New York: Cambridge University Press).

Posted in Common ownership, Democracy, Karl Marx, Labour Party, Left politics, Lenin, Leszek Kolakowski, Liberalism, Mao Zedong, Markets, Nationalization, Politics, Private enterprise, Property, Robert Owen, Socialism, Uncategorized

February 24th, 2018 by geoffhodgson1946



Geoffrey M. Hodgson


Bernie Sanders campaigned for the Democratic presidential nomination in the US in 2015-2016. In the primary elections he received over thirteen million votes. He won 23 primaries and caucuses and approximately 43 per cent of pledged delegates, compared to 55 per cent for Hillary Clinton.

Polls taken in 2017 have found Sanders to be the most popular politician in the US.

Sanders is a long-avowed “socialist”. What does he mean by this term? This is not an attack on the personality of Sanders, nor an attempt to smear him. Instead it is a search for the truth. What does he mean by “socialism” and what are his intellectual roots?

Does democracy imply socialism?

This is not a story about Russian spies. It is about Russian dolls. Sanders is the outer form of a Russian doll, with the slogan of Democracy across his chest. This slogan is used to promote socialism, typically with some vagueness about its meaning.

For Sanders, democracy implied socialism and substantial public ownership. In a 1987 interview he explained:

“Democracy means public ownership of the major means of production, it means decentralization, it means involving people in their work. Rather than having bosses and workers it means having democratic control over the factories and shops to as great a degree as you can.”

Nineteen years later, Sanders was still repeating this argument that extended democracy implied a greater role for government. But he then side-lined the question of public ownership. When asked in 2006 what democratic socialism meant, he responded:

“[The] government has got to play a very important role in making sure that as a right of citizenship, all of our people have health care; that as a right, all of our kids, regardless of income, have quality child care, are able to go to college without going deeply into debt; that it means we do not allow large corporations and moneyed interests to destroy our environment; that we create a government in which it is not dominated by big money interest. I mean, to me, it means democracy, frankly.”

Given his rising prominence in the US, among a population that has not normally been sympathetic to socialist ideas, it is understandable that Sanders played up democracy and played down public ownership. But there is no evidence that he has abandoned his support for widespread common ownership.

Sanders is not alone in sometimes hiding his socialism behind the word democracy. Michael Moore did it in his ironically-titled 2009 film Capitalism: A Love Story, where he argued that

“capitalism is an evil, and you cannot regulate evil. You have to eliminate it and replace it with something that is good for all people, and that something is democracy.”

But democracy is a system of government, and it is not in itself a type of economy.

Like Moore, Sanders in recent years has been economical with the truth. As we have entered the new millennium he has left the details of his socialism vague. He grants his audience the freedom to choose its meaning.

Socialism: A love story

They may impute its original radical meaning of widespread common ownership. Or they can infer that Sanders is promoting a version of social democracy, as found in Denmark, Norway or Sweden. Sanders said in 2015 that

“we should look to countries like Denmark, like Sweden and Norway, and learn from what they have accomplished for their working people.”

Lars Løkke Rasmussen

We certainly should learn from these Nordic countries, but we should not dupe people into believing that they are socialist. A few days after Sanders’ comment, the Danish Prime Minister Lars Løkke Rasmussen attacked the misconception that the Nordic model is a form of socialism:

“I would like to make one thing clear. Denmark is far from a socialist planned economy. Denmark is a market economy.”

The Nordic countries mentioned by Sanders have relatively high levels of taxation and relatively low levels of economic inequality. They have strong welfare states. But they have not achieved anything close to socialism in its original sense. The private sector is still dominant. But by giving little guidance about what he means by socialism, Sanders can please a wider audience.

In a country where even minimal government involvement in the economy is habitually described by its opponents as socialist, Sanders has been opportunist. As he has come closer to power he has accepted the socialist label without much further explanation, knowing that for millions of Americans this is taken to mean even the mildest level of government economic intervention.

Sanders has allowed this inaccuracy to prevail, thus establishing a wide following among liberals, social democrats and radical socialists. He may have told the truth, but not the whole truth.

A mixed economy?

Jeremy Corbyn

As he has got closer to the pinnacles of power, Sanders has accepted a place for small-scale private enterprise. Similarly, the UK Labour Party Leader Jeremy Corbyn has acknowledged the reality of a mixed economy.

But crucially, neither Corbyn nor Sanders have elaborated a positive defence of the private sector.

Genuine advocacy of a mixture requires making the case for more than one type of ingredient. As well as their support for the public sector, they could have argued, for instance, that a substantial private sector is necessary for a viable civil society, to reap the benefits of competition, and to help sustain innovation and technological advance. Sanders and Corbyn have failed to make such arguments.

These arguments are rare among traditional socialists. The widespread absence of a defence of the private sector speaks as loudly as their calls for government intervention or common ownership. It suggests that a private sector is being reluctantly tolerated, and it would all be swept up into public territory if the opportunity arose. A mixed economy is to be accepted for now, as the system makes its transition toward full-blooded socialism and the abolition of all private enterprise.

Democratic socialism would take too many meetings

There is a further problem with the notion of democratic socialism that is adopted by Sanders and Corbyn. They promote a vague vision of extensive democratic control in the economy. Neither of them explain in detail how this extensive democratic decision-making is going to work. Would employees and consumers have a say on everything? How would they decide? How would the hierarchy of decision-making be structured?

The adjective democratic is kept as vague as the noun socialism. The details and feasibility of any such arrangement are simply ignored. If votes were held on every important question then the population would be overburdened with a myriad of decisions. Our lives would be taken up with meetings and voting.

It is impossible for anyone to gain expert knowledge on anything but a small number of technical and scientific issues. It would be counter-productive to put these technical issues to the vote. While many socialists have paid homage to some vague notion of “democratic control”, no-one has shown in theory or in practice how it would function in detail.

More Russian dolls inside

Let us go further into Sanders’ past. In the 1980s, when he was mayor of Burlington in Vermont, Sanders promoted a twinning programme with Yarolslavl in the USSR. He and his wife spent their honeymoon in the USSR in 1988.

This may be excused as an attempt to develop international understanding between varied communities, but this visit by an enduring, self-declared “socialist” to a “socialist” country under Communist Party rule would have been used to damage his presidential campaign in 2016, if he had won the nomination.

Going further back, as a young man in Chicago in the 1960s, Sanders was a member of the Young People’s Socialist League, which was the youth wing of the Socialist Party of America.

Founded in 1901, this party went through several splits and ruptures, but it was generally clear what it meant by socialism.

The following words appeared in its constitution:

“[The] Socialist Party is to bring about the social ownership and democratic control of all the necessary means of production – to eliminate profit, rent, and interest, and make it impossible for any to share the product without sharing the burden of labor – to change our class society into a society of equals, in which the interest of one will be the interest of all.”

This formulation – involving widespread common ownership of the means of production – is in line with the original vision of socialism, as promoted by Robert Owen, Karl Marx, Vladimir Lenin, Leon Trotsky and numerous other socialists.

Finding Lenin and Trotsky

Eugene V. Debs (1855-1926) was the most famous leader of the Socialist Party of America and four times its presidential candidate, peaking at 913,693 votes in his 1920 campaign. Adopting the Marxist language of militant class struggle, Debs supported the 1917 Bolshevik Revolution in Russia. He also praised the attempted 1919 armed insurrection led by Karl Liebknecht and Rosa Luxemburg against the new-born German Republic.

In 1977 Sanders made a 30-minute documentary about Debs and his ideas. Sanders never recanted the version of socialism promoted by Debs and the Socialist Party of America.

In 1980 Sanders served as an elector for the Socialist Workers’ Party (USA), in an attempt to put this Trotskyist group on the presidential ballot, although Sanders was never a member of that organization.

Although Sanders was hugely popular during the 2015-16 primaries, if he had become the Democratic presidential candidate, then his Republican opponents would have milked this information about his Trotskyist links and his Russian honeymoon.

Leninism and democracy

Sanders is too vague about his socialism and his links with past radical socialists to draw too many definite conclusions. But the links are there, all the way back to Trotskyism and Leninism. It is ironic to compare how Sanders tries to champion democracy today, with the treatment of democracy by his Leninist antecedents.

In August 1917 Lenin explained in his State and Revolution that the forthcoming seizure of power would be highly democratic for the working class.

In November 1917 the Bolsheviks overthrew the liberal-socialist government of Alexander Kerensky. By the end of 1918, in the midst of a vicious civil war, all parties except the Bolsheviks were banned, and Russia had become a one-party state.

The “immense expansion of democracy” that Lenin had promised in his State and Revolution was not delivered. It would not have been feasible, even under the most conducive of circumstances.

As it turned out in Russia, there was no possibility of organizing a political force to counter, criticize or modify Bolshevik policy. Without organized alternatives to the ruling elite, democracy becomes a sham.

When the exiled Kerensky spoke at a London meeting in 1921, someone there claimed that the Bolsheviks were democrats. Kerensky responded:

“If it is democracy to banish your opponents, to suppress all meetings and newspapers, and to lock up people who disagree with you without trial, by what signs do you ask me to recognise tyranny?”

Let’s be honest about socialism

Sanders has tapped into legitimate discontent about inequality and poverty in the US, but has failed to explain how his version of socialism will work. He has kept the meaning of the s-word vague, thus providing himself with radical appeal with limited long-term practical substance, other than the adoption of some measures of reform within a capitalist economy.

From its inception in 1827 and for much of the twentieth century, socialism had the radical meaning of widespread common ownership that both Sanders and Corbyn originally promoted. Subsequently, some thinkers tried to shift its meaning, but no consensus emerged on its new substance.

Socialists should stop hiding their socialism behind the word democracy. Many socialists believe in democracy, but democracy and socialism are not the same thing.

Real-world socialism has failed to sustain democracy. This is a problem for socialism and it should not be ignored.

The connection between claimed “democratic socialism” and socialism in its totalitarian incarnations is avoided by Sanders and Corbyn by comparing the ills of real-world capitalism with an imaginary, idealized socialism that is unfeasible as it is invisible.

Sanders and Corbyn do not compare the ills of real-world capitalism with the ills of real-world socialism. If they did this honestly, then they might reach different conclusions. Instead of chasing socialist unicorns they might seek for the best within capitalism and then try to improve it further.


24 February 2018

Published January 2018

Buy on or


Clarke, Peter (1978) Liberals and Social Democrats (Cambridge: Cambridge University Press). The quote by Kerensky is found on p. 220.

Hodgson, Geoffrey M. (2018) Wrong Turnings: How the Left Got Lost (Chicago: University of Chicago Press)

Posted in Bernie Sanders, Common ownership, Democracy, Jeremy Corbyn, Karl Marx, Labour Party, Left politics, Lenin, Liberalism, Markets, Nationalization, Politics, Private enterprise, Property, Robert Owen, Socialism, Soviet Union

February 18th, 2018 by geoffhodgson1946

But it does not deserve to be there


Geoffrey M. Hodgson


Despite the disastrous record of self-described “socialist” regimes, socialism (whatever it means) is remarkably popular.

According to a 2017 survey of American adults, 37 per cent preferred (what they described as) socialism to capitalism. Among millennials (meaning those reaching adulthood in the early twenty-first century), 44 per cent preferred socialism over capitalism. This survey broadly confirmed previous American polls from about 2015, which showed a surge of support for socialism, especially among younger people.

Polling in the UK found that 39 per cent of adults have an unfavourable view of capitalism, while 33 per cent were favourable. Also in the UK, 36 per cent viewed socialism favourably, compared to 32 per cent negatively. Germans were reported as even more positive about socialism, with 45 per cent being favourable and 26 per cent unfavourable.

These polling figures are remarkable, especially when we take into account that regimes describing themselves as socialist led to over 90 million deaths in the twentieth century. Socialism has captured the ethical high ground, despite the poor record of socialist regimes in terms of human rights.

Somehow today’s socialists evade this legacy. They argue that these regimes were not really socialist. Or they were corrupted by bad leaders. Or they suffered largely because of antagonism from the capitalist West. All these arguments assume that a humane socialism is feasible and that there are not congenital flaws in socialism that lead it to dictatorship.

The word socialism has been in existence for almost 200 years and generally it has meant the promotion of common ownership and the abolition or limitation of markets and private property. There have been attempts to change this meaning but they have largely failed.

Love, care and cooperation

Socialism raises the moral flag because it claims to be the creed of love, care and cooperation. By contrast, it is argued, capitalism and markets encourage selfishness and greed.

Socialists point to defenders of capitalism such as Ayn Rand, who like the fictional Gordon Gekko in the 1987 movie Wall Street, promoted the view that that greed is good and altruism is evil.

Mainstream Economists are tainted too: they often favour markets and assume individual self-interest as an axiom. Socialism will subdue markets, private profits and other spurs to greed, and through common ownership create a system that encourages people to cooperate together and act unselfishly.

So the argument goes. But the evidence tells a different story. The socialists, the “greed is good” defenders of capitalism, and believers in our total selfishness are all wrong.

Theory and evidence, from Darwin onwards, show that evolution has provided humans with a mixture of selfish, cooperative and moral capacities, which can be stunted or developed according to different cultural and institutional settings.

There is also strong evidence that market or trading relationships can enhance sentiments of fairness and reciprocity. The notion that markets always make people greedy, selfish and amoral has been refuted. The moral high ground claimed by socialism is challenged not simply by the misdeeds of socialist dictators, but also by extensive evidence about human nature and how it is affected by markets or other institutional circumstances.

Small-scale societies have relied on sentiments of cooperation and moral solidarity that have evolved within groups over millions of years. Solidarity within tribes or bands helped them survive in competition over resources with their rivals. But unfortunately evolution has not disposed us to be nice to outsiders.

The modern world has built up citizen loyalty to nation states, but the downsides have been hostility to foreigners and belligerent nationalism. In the modern world, institutions are needed to encourage mutual understanding and reciprocity on a global scale.

Thomas Paine

One of these institutions is the market. There is impressive evidence that, on balance, international free trade can reduce the risks of war between nations. In larger-scale systems, despite market competition, trade can build bonds and reduce conflict.

While the complete commercialisation of family and community life could undermine trust and altruism, wider trade on a larger scale increases mutual interdependence. As Thomas Paine, Richard Cobden, John Hobson and several others argued, markets can help to build solidarity within and between nations.

Socialism as “obvious”

Yet, despite evidence to the contrary, socialism still clings to the high moral ground. For Jeremy Corbyn and many others, socialism is an “obvious” response, where caring for one another supersedes the greed and profit-seeking that is always fostered by capitalism. Little further detailed evidence is deemed necessary.

If socialism is “obvious”, then how do we explain the failure of other intelligent people to get on board? If they are not stupid, then they must be acting out of personal malice or greed. They must have sold out their principles in some way. Or they are just plain nasty.

When socialism is seen as “obvious”, its opponents are regarded as stupid or evil. Because the solution is “obvious” there can be no doubt. There is no need to look at evidence, to experiment, to seek wise counsel, or to listen to critics. Those that deny the obvious are deluded, corrupt, or in the pay of those that gain from the existing system.

Hence the claim that “socialism is obvious” encourages a remarkable intolerance of those that take a different view.

Modern economies are highly complex, and to pose any system or solution as “obvious” is a dangerous populist naivety. Precisely because something called socialism has now become popular, we are entitled to ask more precisely what it means.

Socialists compare an imaginary “obvious” world with the real world, with all its poverty, inequality and other problems. They simply assume that their imaginary world of love and cooperation will work. They assume that much can be decided democratically, ignoring the fact that it is impossible to make more than a small fraction of day-to-day decisions democratic. They ignore the problems of incentivizing work and innovation, and of ensuring functional autonomy without private property. All these problems became apparent in real-world socialist experiments in the past.

Socialism and dictatorship

A major problem with large-scale socialism is that a large concentration of political and economic power in the hands of the state undermines the economic foundations of countervailing power and empowers totalitarian forces and outcomes. These problems are illustrated by developments in Russia, China and Venezuela.

Such a centralization of economic power requires and promotes a strong executive, unburdened by checks and balances. When this concentration of economic power is achieved, it reinforces political centralization in the absence of countervailing interests and powers.

The argument that “good” leaders will avoid these pitfalls is spurious. Without checks and balances there are strong temptations to cut constitutional corners. Eventually a “good” leader will be succeeded by someone worse, who will have less scruples about abusing executive power.

The conclusion is that democracy and human rights require countervailing power and a market economy with a much smaller public sector. Countervailing interest groups, with their own access to resources and an ability to check or influence the state, are necessary to prevent democratic abuses and over-centralization.

Ignoring this powerful argument, in the face of extensive historical evidence in its support, is morally reprehensible. It betokens a moral irresponsibility in the light of ample evidence to the contrary. The socialist tenure of the moral high ground is illegitimate.


Instead, the moral high ground should be conceded to those who understand that:

– modern economic systems are highly complex and cannot be largely planned from the centre

– genuine autonomy requires rights to private ownership

– the existence of democracy and the protection of human rights require countervailing politico-economic power

– mixed economies have the best economic performance

– a welfare state is necessary to protect the poor and needy

– instead of chasing unicorns, we should follow the example of those capitalist countries that have the lowest levels of inequality.


18 February 2018


Published January 2018



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Bowles, Samuel and Gintis, Herbert (2011) A Cooperative Species: Human Reciprocity and its Evolution (Princeton, NJ: Princeton University Press).

Courtois, Stéphane, Werth, Nicolas, Panné, Jean-Louis, Packowski, Andrzej, Bartošek, and Margolin, Jean-Louis (1999) The Black Book of Communism: Crimes, Terror, Repression (Cambridge MA: Harvard University Press).

Darwin, Charles R. (1871) The Descent of Man, and Selection in Relation to Sex, 2 vols (London: Murray and New York: Hill).

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Haidt, Jonathan (2012) The Righteous Mind: Why Good People are Divided by Politics and Religion (London: Penguin).

Henrich, Joseph, Boyd, Robert, Bowles, Samuel, Camerer, Colin, Fehr, Ernst, Gintis, Herbert and McElreath, Richard (2001) ‘In Search of Homo Economicus: Behavioral Experiments in 15 Small-Scale Societies’, American Economic Review (Papers and Proceedings), 91(2), May, pp. 73-84.

Henrich, Joseph, Boyd, Robert, Bowles, Samuel, Camerer, Colin, Fehr, Ernst, and Gintis, Herbert (2004) Foundations of Human Sociality: Economic Experiments and Ethnographic Evidence from Fifteen Small-Scale Societies (Oxford and New York: Oxford University Press).

Henrich, Joseph, Jean Ensminger, Richard McElreath, Abigail Barr, Clark Barrett, Alexander Bolyanatz, Juan Camilo Cardenas, Michael Gurven, Edwins Gwako, Natalie Henrich, Carolyn Lesorogol, Frank Marlowe, David Tracer, and John Ziker, (2010) ‘Markets, Religion, Community Size, and the Evolution of Fairness and Punishment’, Science, 327 (5972), pp. 1480-84.

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Posted in Common ownership, Democracy, Jeremy Corbyn, Labour Party, Left politics, Markets, Nationalization, Neoliberalism, Private enterprise, Property, Socialism, Soviet Union, Venezuela

October 11th, 2017 by geoffhodgson1946


Geoffrey M. Hodgson


If you wish to cultivate an image of being principled and politically pure, then avoidance of policy details, plus a good dose of historical ignorance, can be very useful. You may conjure up figures from past history and recruit them to the cause of your choice.

Perhaps unwittingly, Jeremy Corbyn acquired these methods from his mentor Tony Benn. Their shared cause, or course, is socialism. But its details must be kept vague and the statist pill must be sugared with ample use of the word “democratic”. Not too much thought must be applied to how the “democratic” bit works in practice.

Tony Benn and Jeremy Corbyn

Ignorance of history is an asset. You find some radical heroes who have opposed injustice, inequality, and the status quo. Don’t go into too many details. It might prove embarrassing. Simply suggest that because of their radical energy these radicals must have been, or they were on the way to becoming, “democratic socialists”.

It’s even better if you can go back in history long before there was any movement calling itself socialist – long before the word was invented. Then you can do a bit of hand-waving with phrases like “their ideas were moving towards democratic socialism” or “what would they think today?” with less fear of contradiction.

After all, if they were true and principled radicals, then they must have been moving in that direction. Socialism is obvious. Isn’t it?

The English Civil War

The English Civil War of the 1640s is a good hunting ground for your heroes. In a book published in 1980, the veteran Labour Party MP Fenner Brockway declared the seventeenth-century Levellers and Diggers as Britain’s First Socialists. His friend Tony Benn had already located them there. Jeremy Corbyn followed their cue.

The English Civil War erupted in 1642, as a conflict of authority between the King and Parliament. King Charles I claimed to rule by divine right, deriving his sovereignty from religion. By contrast, Parliament professed to represent the will of the people. But only a small minority of males had the right to vote in parliamentary elections. Women had no vote.

Parliamentarians and Royalists warred throughout Britain until the defeat and execution of Charles I in 1649 and the installation of a republic under Oliver Cromwell.

The Civil War stimulated seminal debates concerning power and authority. There was a growth of dissident Protestant groups, who saw the established Protestant Church of England as too hierarchical and conservative.

These widening schisms forced the question of the legitimation of government authority onto the immediate agenda.

Political ideas of the Levellers

Prompted by debates over what to do with the monarchy and the King after his defeat, a major political movement developed within the Parliamentarian army. They were called Levellers.

Participants in the earlier anti-enclosure uprising in the Midlands in 1607 had been called “levellers” because they levelled hedges and fences.

The Levellers of the 1640s were given this nickname by their enemies, and they repeatedly repudiated the description. They often protested that they were not promoting the “levelling” of landed estates or any general redistribution of property.

The Levellers emphasized popular sovereignty, an extended male franchise, equality before the law, and religious tolerance. They believed in natural and inalienable rights, bestowed by God.

The inalienability of these rights put limits on the powers of any majority in Parliament, because democracy cannot stifle inalienable rights. But otherwise they were strong supporters of democracy.

While they defended private property, they railed against undemocratic tyranny. Hence their position was different from some modern libertarians who, while generally supporting liberty, argued on occasions that if private property rights were threatened, then democracy might justifiably be replaced by temporary dictatorship.

From 1647 to 1649 the Levellers published a series of manifestos entitled The Agreement of the People. The Levellers were the first political movement in Europe to call for the separation of church and state and for a secular republic.

Authority would be vested in the House of Commons rather than in the King or the House of Lords. Specified “native rights” were declared sacrosanct for all Englishmen: freedom of conscience, freedom of worship, freedom from impressment into the armed forces, and equality before the law.

The Levellers argued for a constitution based upon an extended manhood suffrage and biennial Parliaments. But they did not advocate female suffrage. And as C. B. Macpherson noted:

“the Levellers consistently excluded from their franchise proposals two substantial categories of men, namely, servants or wage-earners, and those in receipt of alms or beggars.”

Oliver Cromwell and the Levellers

The Levellers were influential in Cromwell’s army. At a rendezvous near Ware in Hertfordshire on 15 November 1647, two regiments carried copies of the Agreement of the People and stuck pieces of paper in their hat-bands with the Leveller slogan “England’s Freedom, Soldiers’ Rights”.

With swords drawn, Cromwell and some of his officers rode into their ranks and ordered them to take the papers from their hats. One of the soldiers was swiftly executed for mutiny.

Putney Debates 1647

Siding with the Levellers in the Putney Debates of 1647, the parliamentarian Colonel Thomas Rainsborough argued that both the rich and poor had a right to a decent life, and that “every man that is to live under a government ought first by his own consent to put himself under that government”.

Burford Churchyard Memorial

But in 1649, Rainsborough was killed, Leveller-led army mutinies in London and Oxfordshire were crushed, and Cromwell effectively destroyed the Levellers as a political force.

John Lilburne

John Lilburne, the Leveller leader, came from County Durham. He was originally a Puritan and he later converted to Quakerism. Arrested in 1637 for circulating unlicensed pamphlets, he was fined £500, whipped, pilloried, and imprisoned.

John Lilburne

During the Civil War, Lilburne served as an officer in the Parliamentarian army. For his agitation against the Cromwellian authorities he spent several more years in prison.

Lilburne coined the term “freeborn rights”, defining them as rights with which every human being is born, as opposed to rights bestowed by government or by its laws. He advocated an extended male suffrage, equality under the law and religious tolerance.

Asked in a 2015 interview with the New Statesman to identify the historical figure he most admired, Corbyn named John Lilburne. In a talk in the same month, Corbyn wrongly hinted that Lilburne was a socialist. In fact, Lilburne was a liberal, although that political term was not in use at the time.

Lilburne explained in 1647 that the term “Leveller” applied to him and his party, only in the sense of equality under the law, namely their “desire that all alike may be levelled to, and bound by the Law”.

But much later their socialist admirers assumed that they wished to “level” all property as well. There is no basis for this supposition in Leveller writings.

The Levellers and common ownership

The Levellers declared that rights to liberty and property were innate to every person. Individuals had rights over their thoughts and bodies, without molestation or coercion, and everyone had the natural right to own private property. The Levellers did not promote common ownership, except when it resulted from the voluntary pooling of the property of everyone involved.

Generally the Leveller leaders did not campaign against the enclosure of common lands. Instead they upheld legally-acquired rights of property. The Marxist historian Christopher Hill pointed out that the Levellers “sharply differentiated themselves from the Diggers who advocated a communist programme”.

A defence of private property and a rebuttal of “levelling” appears in the final, May 1649 version of the Leveller Agreement of the People, in a passage addressed to Members of Parliament:

“We therefore agree and declare, That it shall not be in the power of any Representative … [to] level men’s Estates, destroy Propriety, or make all things Common.”

Even if representatives in the legislature were democratically elected, they did not have the right to overturn individual rights to property.

Lilburne’s arguments against common ownership

Likewise, Lilburne was repeatedly obliged to rebut the charge that the Levellers desired to “level” all property. He wrote in 1652:

“In my opinion and judgment, this Conceit of Levelling of property … is so ridiculous and foolish an opinion, as no man of brains, reason, or ingenuity, can be imagined such a sot as to maintain such a principle, because it would, if practised destroy not only any industry in the world, but raze the very foundation of generation, and of subsistence or being of one man by another.”

Lilburne then explained why this was so:

“For as industry and valour by which the societies of mankind are maintained and preserved, who will take the pains for that which when he hath gotten is not his own, but must be equally shared in, by every lazy, simple, dronish sot? Or who will fight for that, wherein he hath no interest, but such as must be subject to the will and pleasure of another, yea of every coward and base low-spirited fellow, that in his sitting still must share in common with a valiant man in all his brave noble achievement?”

Lilburne concluded:

“… those men in England, that are most branded with the name of Levellers, are of all in that Nation, most free from any design of Levelling, in the sense we have spoken of.”

As well as rebutting the charge of “levelling”, Lilburne here defended the institution of private property in terms of its incentives for “industry” and maintaining “subsistence”. If everything were “equally shared”, then the “lazy” would benefit as much as those “who will take the pains”, thus diminishing incentives for individual effort. Incentives to work hard would be lessened.

The 1/n problem

With the above words, Lilburne pointed to the crucial problem of scale in all communistic ventures.

It is a version of what economists call “the free-rider problem”. As the size of the community increases, the free-rider problem can be exacerbated. If the number of people in a working community that shares its income is n, then individual incentives to contribute to community output are very roughly in proportion to 1/n.

As n increases, the extra effort of any single individual is rewarded less, because the output from extra effort is shared between n people. We may call this the 1/n problem. As far as I am aware, Lilburne was the first person to identify it.

Crucially, at low values of n, such as in a family or in a small cooperative, incentives to work hard can be enhanced by face-to-face mechanisms involving reciprocity, trust, commendation, satisfaction, shame, scorn or punishment.

These social mechanisms are effective because they have evolved in human tribes over millions of years. Elinor Ostrom’s case studies of the community management of common pool resources show what is feasible in more recent settings.

Elinor Ostrom

Hence some form of socialism may work on a small scale. But at higher levels of n these interpersonal mechanisms become relatively less effective. Other incentives, involving money and property, are required.

The Levellers on free trade and (state) monopolies

The Levellers advocated free trade. For them, the basic division in society was not between workers and owners of property: it was between the rich and influential – who profited from (state and other) monopolies and government favours – and the rest of the people. A clause in the May 1649 version of The Agreement of the People tells Parliament:

“That it shall not be in their power to continue or make any Laws to abridge or hinder any person or persons, from trading or merchandizing into any place beyond the Seas, where any of this Nation are free to trade.”

Leveller leaders Lilburne, Richard Overton and William Walwyn attributed the existence of low wages to monopolies, restrictions on trade, and excise taxes.

In 1652 Walwyn presented to the Parliamentary Committee for Trade and Foreign Affairs a defence of free trade against the Levant Company, urging the abolition of monopolies and trade restrictions. Walwyn saw free trade as a common right, conducive to common good.

The Levellers and Diggers contrasted

Yet the myth that the Levellers promoted common ownership persists. Tony Benn often mentioned the Levellers favourably, but he ignored their strong commitment to private ownership, and instead suggested that their arguments pointed to “common ownership and a classless society”.

An entertaining four-part television series set during the English Civil War entitled The Devil’s Whore (released in North America as The Devil’s Mistress) has Rainsborough speaking in favour of common ownership, without any objection from Lilburne.

There is no historical evidence to sustain such depictions. They are fantasies promoted by Benn, Brockway, Corbyn and others.

By contrast, the Diggers opposed private property. From 1649-1650 groups of Diggers squatted on several stretches of common land in southern England. They set up communes whose members worked together on the soil and shared its produce. The Digger leader Gerrard Winstanley published a series of pamphlets advocating common ownership of land.

The Diggers

Winstanley regarded the institution of property as a limitation of the freedom of others. Land was bestowed to all by God. Unlike the Levellers, Winstanley criticized trade, because it led to cheating and discontent. He envisioned an agrarian society, in which all goods would be communally owned, and all commerce and wage labour would be outlawed.

Hence the Levellers and Diggers had very different ideological positions. The Levellers advocated individual autonomy, private ownership and free trade. Although they appealed to religion, they saw democratic legitimation as the source of government authority. By contrast, the Diggers proposed a rigid, small-scale, religiously-inspired, agrarian communism.


The Levellers were political theorists as well as activists. They helped to develop the intellectual foundations of Enlightenment liberalism.

Unlike later liberals such as Thomas Paine, they did not advocate a welfare state. Unlike John Stuart Mill they did not call for female suffrage. Unlike twentieth century liberals such as John A. Hobson, John Maynard Keynes and William Beveridge they did not advocate substantial state regulation in a mixed capitalist economy.

But the Levellers were liberals and democrats nevertheless. Their arguments against large-scale socialism remain pertinent today.


11 October 2017

This book elaborates on some of the political issues raised in this blog:

Published by University of Chicago Press in January 2018



Benn, Tony (1976) ‘What would the Levellers do Today?’ 15 May.

Brailsford, H. N. (1961) The Levellers and the English Revolution (London: Cresset Press).

Brockway, Fenner (1980) Britain’s First Socialists: The Levellers, Agitators and Diggers of the English Revolution (London: Quartet).

Hampton, Christopher (ed.) (1984) A Radical Reader: The Struggle for Change in England, 1381-1914 (Harmondsworth: Penguin).

Hill, Christopher (1975) The World Turned Upside Down: Radical Ideas During the English Revolution (Harmondsworth: Penguin).

Hodgson, Geoffrey M. (2017) Wrong Turnings: How the Left Got Lost (Chicago: University of Chicago Press, forthcoming).

Macpherson, Crawford B. (1962) The Political Theory of Possessive Individualism: Hobbes to Locke (Oxford: Oxford University Press).

Manning, Brian (1976) The English People and the English Revolution, 1640-1649 (London: Heinemann).

Morton, A. L. (1975) Freedom in Arms: A Selection of Leveller Writings (London: Lawrence and Wishart).

Ostrom, Elinor (1990) Governing the Commons: The Evolution of Institutions for Collective Action (Cambridge: Cambridge University Press).

Otteson, James R. (ed.) (2003) The Levellers: Overton, Walwyn and Lilburne – Works by these and by other British Levellers (Bristol: Thoemme Press).

Robertson, D. B. (1951) The Religious Foundations of Leveller Democracy (New York: Kings Crown Press, Columbia University).

Woodhouse, A. S. P. (ed.) (1951) Puritanism and Liberty: Being the Army Debates of 1647-9 (Chicago: University of Chicago Press).

Posted in Common ownership, Democracy, Jeremy Corbyn, Left politics, Liberalism, Socialism, Tony Benn