ENGAGING ENEMIES ENGAGING ENEMIES Hayek and the Left Simon Griffiths London • New York PublishedbyRowman&LittlefieldInternational,Ltd. UnitA,WhitacreMews,26–34StanneryStreet,LondonSE114AB,United Kingdom www.rowmaninternational.com Rowman&LittlefieldInternational,Ltd.isanaffiliateofRowman& Littlefield 4501ForbesBoulevard,Suite200,Lanham,Maryland20706,USA WithadditionalofficesinBoulder,NewYork,Toronto(Canada),andLondon (UK) www.rowman.com Copyright©2014bySimonGriffiths Allrightsreserved.Nopartofthisbookmaybereproducedinanyformorby anyelectronicormechanicalmeans,includinginformationstorageandretriev- alsystems,withoutwrittenpermissionfromthepublisher,exceptbyareviewer whomayquotepassagesinareview. BritishLibraryCataloguinginPublicationInformationAvailable AcataloguerecordforthisbookisavailablefromtheBritishLibrary ISBN:HB978-1-78348-106-4 ISBN:PB978-1-78348-107-1 ISBN:eB978-1-78348-108-8 LibraryofCongressCataloging-in-PublicationData Griffiths,Simon,1976– Engagingenemies:Hayekandtheleft/SimonGriffiths. pagescm Includesbibliographicalreferencesandindex. ISBN978-1-78348-106-4(cloth:alk.paper)—ISBN978-1-78348-107-1(pbk.:alk.paper)—ISBN 978-1-78348-108-8(electronic) 1.GreatBritain—Economicpolicy—20thcentury.2.Hayek,FriedrichA.von(FriedrichAugust), 1899–1992.3.Socialism—GreatBritain.4.Neoliberalism—GreatBritain.5.Liberalism.I.Title. HC256.G752014 330.092—dc23 2014023928 TMThepaperusedinthispublicationmeetstheminimumrequirementsof AmericanNationalStandardforInformationSciencesPermanenceofPaper forPrintedLibraryMaterials,ANSI/NISOZ39.48-1992. PrintedintheUnitedStatesofAmerica For Iris: something to chew on. CONTENTS Acknowledgements xi 1 Hayekandtheleft:Aparadoxicalclaim? 1 Hayekasastrawman 4 ‘Aprophetinthewilderness’ 9 ‘Engaging’enemies 14 RethinkingHayek 15 Outlineofthebook 18 2 Theriseandfallofmarketsocialism 23 Ideologies:essentialistmodelsanddecentredaccounts 24 Contextualchangeandintellectualengagement 29 Thefailuresofstatistsocialism 29 ThelimitsofKeynesiansolutions 31 Politicaltheoryandtheriseofthenewright 33 Therevivalofmarketsocialism 34 Earlieraccountsofmarketsocialism 34 Miller’smarketsocialism 36 Thesignificanceoftherevival 38 Freedominthemarket 39 Thereturnofradicalpluralism 40 Marketsandcommunity 41 Conclusions:marketsocialisminretrospect 44 3 Revisionismrevised 49 Plant’sengagementwithHayek 51 vii viii CONTENTS Socialjusticeandendstates 54 Proceduraljustice 56 Negativeliberty 59 Plantandtheequalvalueoffreedom 60 Socialistrevisionism,newliberalismandNewLabour 62 Twowavesofrevisionism 62 NewLiberalismandNewLabour 64 Conclusions:aliberalizationofsocialism 67 4 Socialmovementsandpluralism:‘Anewkindofknowledge’ 69 PreludestoWainwright’sengagement 70 ThelibertarianimpulseinEasternEurope 72 Againstthe‘all-knowing’state 74 Knowledgeandplanning 74 Fromtacittosocialknowledge 77 Fromsocialknowledgetosocialmovements 80 Thechallengesofinstitutionalisingsocialmovements 81 Socialmovementsandtherevivalofpluralism 83 Rethinkingthe‘all-knowing’state 83 Fromclasstomovements 85 Post-socialism? 86 Revivingpluralism 87 GlobalizationandBritishpoliticalthought 91 Conclusions:therediscoveryofpoliticalpluralism 93 5 Therevivalofliberalism:‘ComradeHayek’or‘Citizen Gamble’? 95 The1970Sand1980S:Crisis,landslideandhegemony 96 ‘TwosidestoHayek’ 99 Gamble’sintellectualdiscoveryofHayek 99 ‘NewTimes’:Contextandintellectualchange 100 Engagingonliberalterrain 102 Thelimitsofknowledge 103 Marketsandentrepreneurs 105 Theroleofgovernmentandorganizations 108 Thelimitsofengagement 109 Theironcageofliberty:Hayek,Weberandmodernity 110 A‘newliberal’defence? 114 Conclusions:thedominanceanddivisionofliberalism 117