History As It Happens: The Crisis of Liberalism Hosted by Martin Di Caro | Release Date: November 29, 2024

Introduction

In the episode titled "The Crisis of Liberalism," Martin Di Caro delves into the historical underpinnings and contemporary challenges facing liberalism, the dominant political philosophy of the American century. Joined by historian Daniel Besner from the University of Washington, the discussion navigates through decades of political, economic, and social transformations that have culminated in what many now perceive as a liberal crisis.

Historical Context: The Rise of American Liberalism

Martin Di Caro sets the stage by tracing the origins of American liberalism back to Franklin D. Roosevelt’s New Deal era. Highlighting FDR’s vision, Di Caro notes:

“I pledge myself to a New Deal for the American people. ... to restore America to its own people.” [00:41]

Roosevelt’s New Deal not only addressed the Great Depression but also laid the foundation for post-World War II prosperity. The subsequent establishment of the national security state, union growth, and the expansion of the middle class underpinned a period of unprecedented economic growth and social progress.

Daniel Besner expands on this, explaining how American liberalism evolved distinctly from its European counterparts:

“Modern American liberalism emerges out of progressivism, which had both left and right-wing variants... since the late 1940s, against which other people define themselves.” [02:25]

This period saw liberalism promoting private property, social welfare programs, and a strong internationalist stance, distinguishing it from the conservative movements of the time.

Challenges of the 1970s: Vietnam, Inflation, and Political Turbulence

The 1970s marked the beginning of liberalism’s challenges. The Vietnam War, economic stagflation, Watergate, and oil shocks eroded public confidence in the liberal order. Bill Clinton’s assertion encapsulates the sentiment of the era:

“The era of big government is over.” [01:06]

Martin highlights how these factors led to a crisis of confidence:

“The bags of groceries that cost you $100 last December now cost $112. It is a crisis of confidence.” [00:49]

This period exposed vulnerabilities in liberal policies, particularly their inability to manage economic instability and societal unrest effectively.

The Rise of Neoliberalism: Reagan, Thatcher, and Globalization

Responding to the 1970s crises, neoliberalism emerged as a dominant force, advocating for tax cuts, deregulation, and reduced government intervention. Martin Di Caro discusses how Reagan and Thatcher reshaped liberalism:

“Reagan cut taxes, slashed regulations, boosted defense spending, and bolstered our alliances in the liberal internationalist tradition.” [05:10]

This shift emphasized market economies and free trade, setting the stage for globalization. By the early 1990s, the liberal order appeared invincible with the collapse of the Soviet Union, which epitomized a victory for democracy and capitalism:

“This is a victory for democracy and freedom.” – Bill Clinton [05:36]

The Clinton Era and NAFTA: Promises and Consequences

The Clinton administration continued neoliberal policies, most notably through the North American Free Trade Agreement (NAFTA). Martin critiques the optimistic outlook that NAFTA proponents like Clinton held:

“You have to have wage protection and employment protection ... they were put into side agreements, labor protections, environmental protections, and they were never enforced.” [38:08]

Daniel Besner critically assesses NAFTA’s impact, highlighting unintended consequences such as increased illegal immigration and the destruction of Mexican agriculture:

“It opened Mexican agriculture to competition with big U.S. agribusiness. Now subsistence farmers ... are ruined by NAFTA.” [35:49]

Clinton’s vision of NAFTA fostering world peace and economic growth is contrasted with its real-world repercussions, laying the groundwork for public disillusionment with liberal policies.

The Crisis Unfolds: From Trump to the Democratic Dilemma

The election of Donald Trump signifies a pivotal moment in the perceived decline of liberalism. Martin observes:

“Donald Trump's election triggered a crisis for the Democratic Party. Could we have lost to him? And now our democracy is set to be in peril.” [01:31]

Daniel Besner argues that the crisis is not merely political but ideological:

“Liberalism itself is a failing ideology. It is unable to confront the questions of the day. It used to be able to and is no longer.” [13:13]

He contends that liberalism has become ossified, disconnected from the economic realities and needs of the broader populace, leading to widespread disenchantment and the rise of populist movements on both the right and left.

Populism and the Current Political Climate

The episode explores how liberalism’s failure to address economic inequality and the changing global landscape has fueled populist backlash. Besner notes:

“Liberals have been and conservatives both have been fucking over blue collar workers. It's just now coming for the white collar workers.” [22:23]

This economic neglect has empowered figures like Trump, who capitalize on public frustration with the status quo. The discussion also touches upon the intersection of cultural and economic issues, with liberalism maintaining cultural liberalism while failing economically.

Prospects and Future of Liberalism

Looking ahead, Martin and Besner ponder the sustainability of liberalism in the face of emerging challenges such as artificial intelligence and shifting global power dynamics. Besner asserts:

“The United States is not going to be hegemonic in East Asia in 10, 20, 30 years.” [41:56]

He also highlights the impact of AI on the white-collar workforce, suggesting that economic transformation threatens the very foundations of the liberal order. The conversation contemplates whether liberalism can adapt or if new political ideologies will take its place, potentially exacerbating global instability.

Conclusion: An Inevitable Transition?

The episode concludes on a somber note, reflecting on the irreversibility of certain liberal transformations and the uncertain future awaiting American political and economic systems. Daniel Besner emphasizes:

“The fate of it is inevitable. The US is going to be a great power, maybe Primus inter Pares even for a little while longer. But it’s certainly not going to be hegemonic in all world regions.” [21:10]

Martin Di Caro encapsulates the overarching theme:

“Global free trade, China into the WTO ... these are often called neoliberalism.” [39:40]

The episode underscores the complexity of liberalism’s decline, intertwined with economic policies, globalization, and shifting societal values, leaving listeners with profound questions about the future trajectory of American and global politics.

Notable Quotes

• Franklin D. Roosevelt [00:00, 00:06, 00:41]:

  "I pledge myself to a New Deal for the American people... the Great Society."

• Daniel Besner [13:13]:

  "Liberalism itself is a failing ideology. It is unable to confront the questions of the day."

• Bill Clinton [05:36, 36:59]:

  "This is a victory for democracy and freedom."

  "We have made a decision... to promote more growth, more equality, better preservation of the environment, and a greater possibility of world peace."

• Martin Di Caro [01:31, 35:49]:

  "Donald Trump's election triggered a crisis for the Democratic Party."

  "What you have to do is expand beyond them to see what Cold War liberalism was like in practice."

Final Thoughts

As liberalism grapples with its internal contradictions and external pressures, "The Crisis of Liberalism" offers a nuanced historical perspective on why the once-dominant ideology is now at a crossroads. Through rich discussions and critical insights, Martin Di Caro and Daniel Besner illuminate the factors contributing to liberalism's current predicament, prompting listeners to reflect on the potential paths forward for American society and its political landscape.

For more insightful discussions, tune in to "History As It Happens" every Tuesday and Friday. Subscribe to Martin Di Caro’s newsletter at HistoryAsItHappens.com.