Kristian Niemietz investigates the economic theories that Liz Truss and Kwasi Kwarteng attempted to implement during their very brief moment in power:
British Prime Minister Liz Truss, 1 May 2022.
Official portrait via Wikimedia Commons.
Over the past couple of years, I have written a lot about how socialists always disown every socialist project as soon as its failures become apparent, and then go on to claim that the project was never “really” socialist to begin with. The idea of socialism is pure, noble and flawless. It cannot fail. It cannot be refuted by real-world evidence. It can only be “badly implemented”, “distorted” or “misappropriated”.
In recent weeks, however, the rhetoric of “Yes, but … not like that!” has not come from socialists talking about Venezuela or Nicaragua, but from disgruntled free-marketeers [https://www.reuters.com/world/uk/trusss-demise-ends-revival-thatchers-libertarian-economics-2022-10-20/] talking about the ill-fated Truss/Kwarteng government.
Whenever this happens, inevitably, within a few minutes, my Twitter notifications fill up with comments like “Oooh, so what you guys are saying is, Trussism-Kwartengism wasn’t real free-market economics? Real free-market economics has never been tried? Hmmm, what does this remind me of? An idea for your next book there, eh, Herr Niemietz?”
Fair enough, I suppose! It would be a bit rich of me to complain about that. My work on socialism was, after all, was not just about socialism per se, but also, more broadly, about the lack of accountability in the world of ideas. If you argue that people should be held to account for the track record of the ideas they advocate, you cannot credibly complain when you find yourself at the receiving end of that.
And, yes, admittedly, in recent weeks, disgruntled free-marketeers really have sounded very much like Continuity-Corbynites. “Truss and Kwarteng had the right ideas, their plan was just terribly executed”; “Truss and Kwarteng were never given a chance, the entire media establishment immediately ganged up on them”; “Truss and Kwarteng were undermined by their own party at every step of the way” – we have heard this all before, just substitute “Corbyn” for “Truss”, and “McDonnell” for “Kwarteng”.
So I cannot blame people for making this comparison. But that does not mean that I have to accept it: I believe that this is a fundamental false equivalence, and I would like to explain why.
(I should, at this stage, make clear that the IEA has no corporate view, so I cannot speak for any of my colleagues or ex-colleagues, or people from other pro-market think tanks. Where I refer to what other people have said, I will specifically say so.)
