Liberalism

The liberation of East Germany from decades of totalitarian dictatorship was a blessing. The chance to unite the nation against much domestic resistance is an achievement for which Kohl deserves full credit. But the practical policies initiated by his government have turned a revolution for freedom into an evolution of the welfare state. Despite all the joys over the fall of the Wall, this was a missed opportunity of historic proportions.

Neo-liberalism is a far richer, more thoughtful concept than it is mostly perceived today. To those criticising neo-liberalism today, the answer may well be just that: we need more of this kind of neo-liberalism that sets a good framework for a free economy. What we would need less of is only the rhetorical abuse of neo-liberalism for political purposes.

Neoliberalism is one of the most commonly used words in political debates. Despite this, the origins of neoliberalism are hardly known. Nor does there appear to be a generally accepted definition of the term. The original inventors of the word ‘neoliberalism’ had something completely different in mind. Their philosophy was a reasiong to the Great Depression of the 1930s. As such it was meant to show a ‘Third way’ between capitalism and socialism. Today’s critics of neoliberalism have more in common with neoliberalism than they may think.

It is quite ironic how neoliberalism re-surfaced a few decades later, albeit bearing an entirely different meaning. Where neoliberalism once was a positive, optimist philosophy it has been reduced to nothing but a political swearword. Unsurprisingly, nobody wants to be a neoliberal any more.

These are difficult times for liberals. The mood around the world is turning against them. Politicians find it easier to blame crazy economists and greedy managers for financial turmoil than to understand and fix their own mistakes. Free-marketers still have the evidence of economic history on their side, but they will have to make their case more forcefully from now on. They face a constant battle of ideas that can never be decisively won. But they can take consolation in the fact that today’s swing to the left will not spell the end of history, let alone of capitalism.

THE great sociologist Max Weber once defined the art of politics as “a strong and slow boring of hard boards” that required “both passion and perspective”. What, one wonders, would Weber have made of Kevin Rudd, who early this month ventured into the sphere of political philosophy with a renewed attack on liberal thinker Friedrich Hayek? While it is hard to deny the passion behind the Prime Minister’s views, the perspective of his critique of the Nobel prize-winning economist is far from clear.

Dass Unternehmer sich in öffentliche Debatten einbringen, ist in Deutschland immer noch eher die Ausnahme als die Regel. Das gilt ganz besonders für Familienunternehmer. In anderen Ländern hingegen ist unternehmerisches Engagement in der Politik viel verbreiteter, und zwar auch außerhalb der Parteien. In Großbritannien konnte sich zum Beispiel eine vielfältige Kultur von Denkfabriken („Think Tanks“) entwickeln, die der Politik in der Vergangenheit immer wieder neue Anstöße gegeben hat.

The great German comedian Loriot once summed it up nicely. “Liberally speaking,” he said, “liberal does not only mean liberal.” Quite. He must have had the Liberal Democrats in mind when expressing this great political insight.