The document discusses the resurgence of socialism and political realignment in Europe and America. In Europe, center-right and centrist parties lost support while socialists, greens, and nationalists/populists gained. Similarly in America, both political parties have adopted more collectivist economic policies through factions appealing to nationalists, unions, globalist technocrats, and greens. This has weakened the case for free markets and increased support for greater government intervention. The document calls for free market advocates to develop alliances between thinkers and business people to better communicate the benefits of capitalism and risks of socialism.

1. Political Realignment and
the Resurgence of Socialism
IAIN MURRAY FEECON
COMPETITIVE ENTERPRISE INSTITUTE JUNE 14 2019

2. The Old Alignment

3. UK Nationalism
First Place Finishers by Region
European Elections 2019

4. How the Votes Shifted

5. Similar Story
Across EU
Center right squeezed
Socialists squeezed
Centrist “liberals” gained
Greens gained
Nationalists/Populists gained

6. France Divided
RN (Nationalist) – Blue
En Marche (“Centrist”) – Yellow
Ou sont les parties de Nicolas
Sarkozy et Francois Hollande?

7. What About America?
 America is a two-party system
 Nationalists – Trump faction of GOP
 Nationalists – industrial wing of Democrats?
 Globalist Technocrats – Obama/Biden/Khanna wing of Democrats
 Greens – Progressive Democrats
 Green New Deal adopted by most Presidential candidates
 Biden plan a regulatory/technocratic version of GND

8. What Does This Mean for Socialism?
 These factions each have their own versions of collectivist economic policy
 “Trump” nationalists
 Protectionism, antitrust, border controls, centrally-funded infrastructure
 Union nationalists
 Protectionism, collective bargaining, border controls, centrally-planned infrastructure
 Globalist technocrats
 Regulatory state, market socialism, managed trade, nudge/Chokepoint
 Greens
 Environmentalism, “post-growth” economics, controls on energy use incl. carbon tariffs,
hyper-local

9. Tucker’s Conversion to Collectivism
 “In Washington, almost nobody speaks for
the majority of voters. You're either a
libertarian zealot controlled by the banks,
yammering on about entrepreneurship
and how we need to cut entitlements.
That's one side of the aisle. Or worse,
you're some decadent trust fund socialist
who wants to ban passenger cars and give
Medicaid to illegal aliens. That's the other
side.”

10. Bipartisan Collectivism
 Greens and “Crunchy Cons”
 “Benedict option” pretty similar to Green hyper-localism “soviets”
 “Hipster antitrust”
 “Curse of Bigness” neo-Brandeisianism adopted by both sides
 Neo-Mercantilism
 Return of tariffs and use of non-tariff barriers in global power games
 Welfare State-ism
 For citizens (nationalists) or UBI (globalists)

11. What Happened to Fusionism?
 Free Markets
 Powered the Economy
 National Defense
 Kept us safe
 Social Conservativism
 Preserved community values
 Free Markets
 Weaken communities
 Fueled rise of threats eg China, Arab oil
 National Defense
 Constant war
 Cost too much
 Social Conservatism
 Hostile to immigration
 Isolationist

12. “Ask not what you can do for your country”
 Radically reduced number of people making the case for markets
 Increased number of people saying government can do good things
 Increased number arguing government can protect you
 Regulatory state has taken place of civil society
 Rise of “Global Elite” credentialed class
 Rise of “Alienated America”
 Economics is not seen as providing an answer to anybody
 Ample breeding ground for collectivism

13. Who Makes the Case for Capitalism?
 Opinion Leaders?
 George Will, David French, Jonah Goldberg all attacked
 Big Businessmen?
 Big corporations seen as “them” in “us v them” struggle
 The Silicon Valley Dilemma – Go Woke, Go Broke
 Educators?
 Swimming against the tide
 Free speech on campus problem

14. The Communications Challenge
People aren’t stupid because they’re
stupid. They’re stupid because
they’re smart. And if we try to make
them smart, then we’re being stupid!
 Fred Smith, Founder of CEI

15. Idea: Values-Based Communication

16. Idea: Thinker-Doer Alliance
 Left uses “Thinker-Doer” alliances, eg World Economic Forum
 Free-marketers need their own versions
 Thinkers need resources of narratives, networks doers can provide
 Doers need wider perspective, authority thinkers can provide
 Idea can scale to local level – local think tanks, educators, and businesses
 Example – businessman, academic, and think tank making case that tariffs harm
local communities, the poor, and the state
 Result could legitimize capitalism once more

17. Your Ideas?
 How do we find a niche in the global political realignment?
 How do we convince the alienated that markets are good for them?
 How do we convince the susceptible that collectivism is bad for them?
 How do we persuade people that the risks of freedom are less worrisome
than the risks of government control?
 How do we break through the noise of the new social media world?

18. Iain Murray
Competitive Enterprise Institute
iain.murray@cei.org
@ismurray