Eric Alterman argues that we have steadily accepted an impoverished liberalism.
“Cultural liberalism,” Alterman says, is ascendant, while “economic liberalism” wanes. He gives a practical and a historical reason for this. The practical reason is that cultural liberalism is easier to support; it doesn’t raise taxes. The historical reason is more complicated.
The story Alterman tells is one that historians have been elaborating in important works over the past few years. The abridged version is that while liberals had plenty to say about social justice in the 1960s, they had few answers to economic failure in the 1970s. That’s because the liberalism of the mid-twentieth century was, to a large degree, what historians have labeled “growth liberalism” – a social and political agenda that presumed an expanding economy and near-limitless resources to apply to all of the issues that the New Deal had neglected: racial equality, feminism, environmentalism, education, and cultural enrichment. Lyndon Johnson declared that the United States would end poverty and move beyond simple economic concerns to achieve what he called his “Great Society.”
That never happened. Instead, the economy slowed to a crawl while unemployment and prices remained high, defying economic orthodoxy and leaving Keynesians with little to offer. Republicans stepped into the space created by liberal silence and proposed their own plan: supply-side economics. Ronald Reagan won the White House in 1980, and conservatives have dominated economic discussions since. Liberals, cowed by voters’ embrace of Reaganism, turned to the cultural issues that remained largely their turf.
There are several ways to take this story. Alterman’s is the glass-half-empty read. David Courtwright’s is the glass-half-full: Republicans have achieved certain economic victories in what remains a basically liberal electorate. I agree with Alterman. A liberalism that achieves all of the social and environmental goals of the 1960s and yet allows an increasingly economically stratified society is a failed liberalism. It’s the sort of liberalism that believes in abortion rights, gay marriage, and social justice but opposes government interference in the marketplace and resents paying taxes – a West-Coast libertarianism that Fred Turner documents in From Counterculture to Cyberculture. For a hint of what that sort of liberalism might entail, consider the consequences of welfare reform.
Granted, these things cannot be entirely teased apart; social and economic justice are woven together. But the Democratic Party has managed, generally, to emphasize the former while glossing over the latter. If Obama wins a second term this will be at the center of liberals’ ongoing attempts to reassert and redefine their ideology.