E-Book Overview
The purpose of this book is to reconsider economic liberalism from the viewpoint of political liberalism. The author argues that advocates of economic liberalism largely overlook empirical political preferences which, in many societies, go far beyond a limited role of the state. Recent difficulties of reforming the welfare state provide evidence that political preferences are at odds with liberal economic policy in numerous cases. This fact challenges a political conception which demands a limited state role but also claims that citizens' preferences 'as they are' should determine the content of policies. Using an evolutionary perspective on economic liberalism, this book develops new arguments about how economic liberalism can be brought into line with political liberalism. Drawing on an evolutionary theory of markets, Gerhard Wegner reinforces the claim that liberal economic policies are conducive to prosperity in society, but he argues that the liberal promise of prosperity does not translate into corresponding political preferences on the part of citizens. A tension between political and economic liberalism arises which lies at the centre of this book. "Political Failure by Agreement" will strongly appeal to postgraduate students and researchers of global governance, political theory, political economy and institutional economics.
E-Book Content
Political Failure by Agreement NEW THINKING IN POLITICAL ECONOMY Series Editor: Peter J. Boettke, George Mason University, USA New Thinking in Political Economy aims to encourage scholarship in the intersection of the disciplines of politics, philosophy and economics. It has the ambitious purpose of reinvigorating political economy as a progressive force for understanding social and economic change. The series is an important forum for the publication of new work analysing the social world from a multidisciplinary perspective. With increased specialization (and professionalization) within universities, interdisciplinary work has become increasingly uncommon. Indeed, during the 20th century, the process of disciplinary specialization reduced the intersection between economics, philosophy and politics and impoverished our understanding of society. Modern economics in particular has become increasingly mathematical and largely ignores the role of institutions and the contribution of moral philosophy and politics. New Thinking in Political Economy will stimulate new work that combines technical knowledge provided by the ‘dismal science’ and the wisdom gleaned from the serious study of the ‘worldly philosophy’. The series will reinvigorate our understanding of the social world by encouraging a multidisciplinary approach to the challenges confronting society in the new century. Recent titles in the series include: Constitutions, Markets and Law Recent Experiences in Transition Economies Edited by Stefan Voigt and Hans-Jürgen Wagener Austrian Economics and the Political Economy of Freedom Richard M. Ebeling Anarchy, State and Public Choice Edited by Edward Stringham Humane Economics Essays in Honor of Don Lavoie Edited by Jack High Public Choice and the Challenges of Democracy Edited by José Casas Pardo and Pedro Schwartz Fiscal Sociology and the Theory of Public Finance An Exploratory Essay Richard E. Wagner Institutional Competition Edited by Andreas Bergh and Rolf Höijer Political Failure by Agreement Learning Liberalism and the Welfare State Gerhard Wegner Political Failure by Agreement Learning Liberalism and the Welfare State Gerhard Wegner Professor of Economics, Erfurt University, Germany NEW THINKING IN POLITICAL ECONOMY Edward Elgar Cheltenham, UK • Northampton, MA, USA © Gerhard Wegner 2008 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means,