Conservatives have long succeeded in persuading business that they are its friends and liberals are its enemies. In reality, the reverse is true. Liberalism saved American capitalism during the depression, and if American capitalism is to be saved from the Great Recession, liberals will have to rescue it.

Modern conservatives claim to be pro-business. But economic conservatism is not based on any empirical study of the actual economic requirements of successful modern industrial and service corporations in a modern mixed economy. The economic right combines an anachronistic tradition with a crackpot ideology.

The anachronistic tradition is Jeffersonian small-producer populism. Defending the rights of small farmers and small businesses was progressive in the 18th and early 19th centuries, when the enemies of freedom were aristocratic landlords who owned slaves and serfs and monopolies with royal charters. Although the industrial revolution rendered small-government Jeffersonianism obsolete by the mid-19th century, American conservatives continue successfully to appeal to Jeffersonian sentiments a century and a half later.

The crackpot ideology of the economic right is libertarianism. Libertarianism and communism are equally crazy in opposite ways. Libertarians believe that it is possible to privatize everything without anarchy, while communists believe that it is possible to socialize everything without tyranny.

Neither Jeffersonian populists nor libertarian ideologues have the slightest clue about how to run a complex technological society in the 21st century. Why should they? Jeffersonianism is a program for a primitive society of small farmers of a kind that no longer exists anywhere. At least, once upon a time, there were genuine Jeffersonian agrarian societies in the real world. There has never been a libertarian country and there never will be, because the maximum of government authority allowed by libertarian theory is well below the minimum required by a functioning community.


From Can liberalism save capitalism from conservatism?


Worth a read.