ABSTRACT
This chapter extends the critique to the models that structure the reform agendas of modern liberalism. Modern liberalism can be best understood as a reaction to the excesses of Laissez Faire. Modern liberals, like socialists, find Laissez Faire to be morally and economically unacceptable, but modern liberals, unlike socialists, judge the basic structures of capitalism to be sound. Modern liberalism wants a reformed Laissez Faire, but reform proposals will depend heavily on how capitalism is conceptualized. Historically, modern liberals have been preoccupied with specific, piecemeal reforms. Lester Thurow is typically modern liberal in his focus on reforming an existing system, as opposed to laying out an ideal model. New liberalism reconceptualizes the economy in terms of two fundamental categories: competition and cooperation. With employment security and participatory rights, workers will be freer under New Liberalism than under other forms of capitalism. New Liberalism also wants low interest rates, which, among other things, will reduce property income.
