Monday, May 19, 2003

Isolation vs. Intervention

Arthur Silber wants to know why conservatives are, in theory, isolationists when it comes to domestic economic policy (or non-interventionists) but interventionists on foreign policy and why liberals are the opposite.

First of all, even ignoring the problems of over-generalization that I know Arthur is well aware of, in this century liberals have been, for the most part, interventionists in foreign policy, with conservatives in the Pat Buchanan mold being the isolationists.

But, aside from that I think it's just a faulty comparison. Minor interventions in the functionings of markets in order to (in theory) make them more competitive and deal with externalities, contracting problems, and assorted rigidities (I rarely hear many calls for the dismantling of the SEC) is something entirely different from thinking one can spread democracy by the sword.

Liberals aren't the statists we're painted as, aside from some minor appropriate interventions, most of us just think that contrary to the rhetoric from the other side the rules of the game have been rigged for the wealthy and powerful, and they have all the refs in their pockets. Or, another way to put it - government intervenes all the time, but from steel tariffs and agricultural subsidies feeding the pockets of large corporations down to corrupt town planners and zoning officials, it just tends to intervene in favor of the winning team. Plenty of industries - from oil to pharmaceuticals to aerospace to advanced electronics, etc... etc... - have lots of "special rights" and cozy relationships with the federal government. And, at the more local level plenty of wealthy developers have cozy relationship with state and local officials.

It's wrong to think that liberals are somehow enamored of government while conservatives aren't. It is true that conservatives and Republicans have adopted libertarian rhetoric, but aside from cutting taxes on capital and bringing down top marginal rates, there's very little follow-through elsewhere.