Political Ideas Discussion Project

Hobhouse's Critique of"Laissez-Faire" Liberalism

Last week we learned that for "classical" liberals, the legitimate functions of the state were very limited: basically, what government should provide is nothing more than a court system to resolve disputes, a police force to enforce the criminal law, and national defense. For the rest of our needs we should be left to our own devices, free to make whatever bargains we choose to make in the "free market." According to Hobhouse this doctrine of "Laissez-Faire" succumbed to various theoretical criticisms and to "the loud voice of the facts themselves." (p.46)

Discuss and try to agree on answers to the following questions. (Have someone in your group write down a conscise account of your answers, or of the issues which prevented you from aggreeing on answers.)

1. When Hobhouse refers to "the loud voice of the facts themselves" in the passage quoted above, what facts does he have in mind? (Make a brief list ofthem.)

2. At the top of page 48, Hobhouse says, "legislation has avowedly undertaken the task of controlling the conditions of industry, the hours, and . . . the actual remuneration of working people without limitation of age or sex. To this it has been driven by the manifest teaching of experience that liberty without equality is a name of noble sound and squalid result." He then lists a variety of further ways in which economic activity in modern societies is regulated (including what we would call a system of "workman's compensation").

a. Why, according to Hobhouse, does liberty require equality? By what argument does he try to show that these types of regulation "were not destroying liberty but confirming it?"? (One version of the argument is found on pages 46-48, another version on pages 49-51.)

b. How compelling do you find this argument? Do you see any holes or errors in it?

3. Another ground for interfering with the operation of the "free market," according to Hobhouse is the presence of monopolies.

a. What is his definition of "monopoly"?

b. What does he think the government should do about monopolies?

c. What reasoning does he present to support his claim that these measures are fair?

d. How compelling do you find this reasoning? Do you see any holes or errors in it?