In this paper I criticize a growing movement within public policy circles that self-identifies as neoliberal. The issue I take up here is the sense in which the neoliberal label signals a turn away from libertarian political philosophy. The are many import ant figures in this movement, but my focus here will be on Will Wilkinson of the Niskanen Center, not least because he has most prolifically written against libertarian political philosophy. Neoliberals oppose the idea that the rights that libertarianism (...) claims people have are useful guides for making the world a freer place because they forestall too much governmental/democratic political action that they purport to be necessary for increasing freedom. Wilkinson mistakenly takes libertarianism to be a set of ideal public policies for achieving a perfectly free society. If it were, he would be right to turn away from it. But placing rights to freedom at the center of their theory of justice does not commit libertarians to an all-or-nothing approach to political change. Consequences and strategy matter – particularly in a non-ideal world – without abandoning the idea that each individual has a right to freedom. In mistaking libertarian moral claims as a set of policy prescriptions, Wilkinson complains that idealistic policy prescriptions not only fail to take account of how those who disagree will respond to such policies if implemented, but also thereby undermines the justice of those policies in the first instance. Wilkinson proposes that change in the direction of freedom must go through the proper channels of actually-existing democratic legitimacy. It as this stage that Wilkinson’s project comes into direct conflict with libertarianism. Whilst libertarianism is not committed to any particular method of creating a free society under non-ideal conditions, and therefore does not rule out democratic political activism as one among many means of doing that, it cannot be committed to the permanence of democratic political authority, and this is what Wilkinson’s neoliberalism demands above all else. It turns out that Foucault’s characterization of neoliberalism long ago is still accurate to Wilkinson’s own view: that neoliberalism is not about creating a society of free individuals, it is about designing the state apparatus in ways that are inspired by the workings of free society – it is about legitimizing the chains, not breaking them. Neoliberalism is not a pragmatic alternative to libertarianism, but rather a gross misapplication of it. (shrink)

Heterogeneous beliefs and decision processes generate positive externalities for social and economic systems, analogous to biodiversity in biological systems. Although some aspects of biodiversity (e.g., pests, parasites and bacteria) can lead to ecological and economic problems, biodiversity provides flows of beneficial ecological services and is widely regarded as a valuable natural resource and informational asset, whose value increases as we learn more and science progresses (Wilson in Bioscience 35(11):700–706, 1985). Heterogeneous beliefs and decision processes (and heterogeneous behaviors they generate) similarly (...) provide flows of beneficial economic services. Behavioral diversity should therefore be seen as a natural resource and informational asset likely to improve human wellbeing in surprising ways in the future. Paternalistic policies motivated by the goal of “correcting” allegedly suboptimal beliefs and behavior that diverge from expert recommendations jeopardize behavioral diversity at a substantial cost to social welfare. The risk of encroaching on this beneficial behavioral heterogeneity with policies that aim to induce behavioral and belief monocultures should be included explicitly as costs when evaluating nudges and other paternalistic policies. (shrink)