How do we become aware that a new age has dawned?
Did
anyone in November 1492 proclaim that the modern age began the previous month
when Native Americans discovered Christopher Columbus (1451-1506)? Did anyone
in November 1517 realize that the modern age began the previous month when Rev.
Martin Luther (1483-1546) challenged the Roman Catholic bureaucracy? Yet
looking back to those events we trace global commerce, exploration, cultural
imperialism, a turn to individualism and soon enough new forms of governance.
Did
anyone in December 1947 say that modernity has been superseded by a post-modern
age because the transistor was invented at Bell Labs the previous month? Did
anyone in August 1954 mark the beginning of postmodernism because Elvis Presley
(1935-1977) recorded That’s All Right
in a style fusing country with rhythm and blues? Yet those events and others
were forerunners to a youth culture, to a pervasive cyber-dimension of life, to
a view of the earth from outer-space, to instant and world-wide communication
of prices, weather patterns, celebrity gossip, political conflict and more.
The same
lack of awareness and ambiguity applies to naming generations. After all,
someone was born yesterday and someone tomorrow. So can we really demarcate and
easily differentiate Baby Boomers from Gen X from the Millennial Generation?
Yet we
need markers to understand our place in history, to understand the forces that shape
our lives and contour our agency in our place and time.
Gary
Gerstle explores the signs of the times in The
Rise and Fall of the Neoliberal Order (Oxford Press, 2022). Gerstle calls each
of his stages a type of liberalism. He admits confusion in terminology. For example,
today’s neoliberals are usually called conservatives. But whatever the labels, every
modern society accepts the basics of classic Liberalism. For example, according
to classic Liberalism individuals are not bound by heredity and knowledge
(science and reason) is better than superstition. Though the British and others
still like the trappings of monarchy, citizens in all classic Liberal societies
have a right to participation in governance. Classic Liberalism, no matter the
labels of the moment, insists that the rule of law replaces vengeance and property
acquired legitimately (including intellectual/creative property) is a protected
possession.
Classic
Liberalism was influential in the late 1700s and somewhat in the 1800s. It had
an intellectual comeback after World War I, says Gerstle, because of economists
like Friedrich Hayek (1899), Ludwig von Mises (1881-1973) and others.
Gerstle
applies the label New Deal liberalism
to the second stage of liberalism. He
associates this worldview with President Franklin Roosevelt (1882-1945), to a
degree with President Dwight Eisenhower (1890-1969) and with President Lyndon
Johnson (1908-1973).
New Deal
liberalism differs from the classic type of liberalism in that government,
labor unions, associations and consumer groups play a role in society and the
economy. The shift recognizes that without countervailing forces individual
liberty and laissez-faire capitalism make for “an economic disaster.” The
market needs an umpire to enforce contracts, to use the military to stabilize
trade, to enforce tariffs and the like. Society also needs government to
restrict businesses that disregard the public good, to employ workers when
hiring slows, to soften the blows of poverty, to purchase when inflation
dampens consumer activity, to tackle big projects (health care delivery,
utility delivery, infrastructure construction and the like) when private
enterprise is incapable.
Gerstle’s
third type of liberalism is called neoliberalism. It harkens back to classic
Liberal themes and is thus a reaction against the socially-minded New Deal
liberalism of Roosevelt and others. Gerstle associates neoliberalism with
Presidents Ronald Reagan (1911-2004), Bill Clinton, Barack Obama and with
others.
Neoliberalism
promises to recover imagination and serious aspirations in contrast to the
deadening bureaucracies of the 1960s and 1970s. It says that private enterprise
can be efficient and therefore government should use contractors for toll way
collections, public transportation, garbage collection, some overseas military
operations, space exploration, schools and more. Neoliberalism favors
deregulation, free trade and information technology.
In the
neoliberal view all encounters are monetized; that is, everything is for
sale—even health care, recreation, personal information and water. Its centers
of interest are Wall St., Silicon Valley, Hollywood and tech hubs in the Boston
and Seattle areas. For neoliberals “cosmopolitanism [is] a cultural
achievement,” writes Gerstle. Regardless of their rhetoric, neoliberalism
applies to most Democrat and Republican politicians. Neoliberalism perpetuates an
old strain of moralizing common in the rugged individual days. It assumes that
some liberty can be denied those who are unable to handle responsibility. Neoliberals
distinguish the deserving poor from the undeserving poor.
Gerstle
hints that neoliberalism has lost luster and that we might be entering a new
phase. The crash of 2008, the disruptions from Covid-19, the incompetence of
President Donald Trump’s administration, a brutal war in Europe and more raise
doubts about the neoliberal promise. What might be signs of a new era? Reports
are welcome.
Droel is
affiliated with National Center for the Laity (PO Box 291102, Chicago, IL
60629). It distributes two encyclicals that critique neoliberalism; one by Pope
Benedict XVI, the other by Pope Francis ($15 for both).