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Matt yglesias on libertarianism, abundance liberalism, and a possible alliance between the two

In a political landscape often defined by rigid tribalism, this piece from Reason proposes a radical recalibration: a strategic alliance between libertarians and the emerging 'abundance liberal' movement on the center-left. The argument is not merely that these groups share a few policy preferences, but that the traditional Cold War-era coalition between libertarians and cultural conservatives is effectively dead, necessitating a new bridge built on the shared goal of dismantling the regulatory state that stifles housing, immigration, and energy production.

The Death of Fusionism and the Rise of Abundance

The piece opens by acknowledging a significant shift in political realignment. It notes that the 'traditional Cold War-era fusionist alliance between libertarians and cultural conservatives is, he thinks, dead and should be replaced by an effort to build bridges with the abundance camp on the center-left.' This reframing is crucial because it moves the conversation away from personality-driven politics and toward institutional dynamics. The editors argue that while the Republican coalition has moved toward protectionism and nationalism, the Democratic Party has ironically embraced 'alternative zero-sum accounts of the economy like greedflation' rather than embracing market-based solutions.

Matt yglesias on libertarianism, abundance liberalism, and a possible alliance between the two

The core of the argument rests on the idea that regulatory overreach is a universal problem, not a partisan one. Reason reports that 'the concept of abundance ought to mean more than progressives owning up to overregulation of the housing sector being a problem.' The piece highlights that housing is the 'single largest sector of the economy,' making its stagnation a critical failure of policy across the board. By focusing on the mechanics of rent-seeking rather than ideological purity, the article suggests that the path forward requires recognizing that 'regulatory systems to become cesspools of rent seeking' is a general principle that applies to most policy areas.

The recognition that it is indeed a general insight that applies to most, if not all, policy areas is significant.

Critics might note that this analysis underestimates the deep-seated cultural and racial anxieties that drive both the populist right and the progressive left, which often make economic rationality a secondary concern. However, the piece insists that the 'positive-sum nature of market exchange' offers a rare common ground that can bypass these cultural fault lines.

The Value of Extremism in Policy Debates

A particularly provocative section of the commentary addresses the accusation that libertarians are inherently too extreme to be taken seriously. The piece pushes back against the notion that moderation is a virtue in itself, arguing instead that 'extremist defenses of liberty often turn out to be right.' To support this, the editors draw a sharp historical parallel to the abolitionist movement, noting that 'before the Civil War, abolitionists who wanted to immediately free all the slaves and grant equal rights to blacks were extremists.'

The argument posits that mainstream opinion is often a 'very weak barometer of truth' because it is 'heavily influenced by ignorance and irrational thinking.' Therefore, advocating for positions that seem radical today—such as immediate open borders or the complete abolition of the FCC—serves a vital function: it expands the 'Overton Window' of what is politically feasible in the long run. The piece contends that 'promoting true-but-extreme ideas can help expand the Overton Window of what is politically feasible in the long run,' suggesting that the goal is not immediate victory but the gradual shifting of the political center.

However, this defense of extremism requires nuance. The article concedes that 'extremism isn't always a virtue, but neither is it necessarily a vice, either.' It acknowledges that while some extreme views are correct, the challenge lies in distinguishing between principled radicalism and mere contrarianism. The piece argues that the validity of a position should be judged by 'logic and evidence, not appeals to moderation.'

Paternalism and the Limits of Government

The commentary then tackles the friction point of paternalism, specifically regarding health and safety regulations. Reason addresses the criticism that libertarians often 'downplay the risks of smoking' or other harmful behaviors. The piece admits that 'many libertarians do indeed tend to dismiss evidence that there is a problem at all,' citing the 'six stages of libertarian denial' outlined by economist Bryan Caplan. Yet, it argues that even when a problem exists, the government's solution is often worse than the disease.

The editors summarize the libertarian counter-argument: 'people still have a right to decide for themselves whether the risks are worth the benefits.' They emphasize that 'government systematically does a poor job of such balancing, worse than individuals deciding for themselves.' Furthermore, the piece warns that prohibitionist policies create 'enormous harm by creating large black markets for risky goods,' pointing to the 'harm caused by alcohol Prohibition and the War on Drugs' as historical proof of this failure.

The War on Drugs is a form of paternalistic regulation, and it is a key rationale for some of the worst abuses of executive power.

This section is particularly potent because it connects abstract economic theory to concrete human suffering. By linking paternalistic regulation to the 'murderous Caribbean boat strikes' and the invocation of 'sweeping emergency powers,' the piece illustrates how the desire to control personal behavior can escalate into authoritarian overreach. Critics might argue that this view ignores the collective action problems where individual choices have massive societal costs, such as in the case of the pandemic, where the piece admits libertarians were 'overrepresented among those wrongly claiming there is little or no problem at all.'

Democracy, Property Rights, and the State

Finally, the piece addresses the tension between democracy and property rights. It acknowledges the critique that libertarians often undervalue democratic self-governance, citing figures like Peter Thiel who have questioned the compatibility of freedom and democracy. However, the editors clarify that 'most libertarians would agree that democracy is superior to other forms of government,' while still insisting on 'tight constitutional constraints' to prevent the 'tyranny of the majority.'

The argument here is that the distinction between 'economic' and 'personal' freedoms is 'largely fallacious.' The piece asserts that 'libertarians' distinctive contribution is to emphasize that these concerns also arise when it comes to the economic powers of the state.' This is a call for abundance liberals to recognize that 'economic powers of government should be subject to at least some significant constraints,' just as they are for personal liberties.

The piece concludes by noting that while the administration's 'abusive aspects' may have little to do with the specific state functions that divide progressives and libertarians, the underlying regulatory apparatus—such as the Federal Communications Commission—remains a target for both. The editors argue that an alliance is not just possible but necessary, based on 'extensive agreement on multiple key issues (housing, immigration, free trade, nuclear power, and perhaps others).' The ultimate verdict is that despite persistent differences, the shared commitment to 'individualism' and 'Econ 101' provides a sturdy foundation for a new political coalition.

Bottom Line

The strongest part of this argument is its refusal to accept the current political stalemate as inevitable, instead identifying a pragmatic overlap between two seemingly opposed movements. Its biggest vulnerability lies in the assumption that policy logic can easily override the cultural and identity-based drivers of modern politics. Readers should watch to see if this theoretical alliance can survive the friction of real-world legislative battles, particularly regarding the scale of government intervention required to solve the housing crisis.

Deep Dives

Explore these related deep dives:

  • The Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor Amazon · Better World Books by William Easterly

  • Fusionism

    The article explicitly argues that this Cold War-era alliance between libertarians and cultural conservatives is dead, making its historical mechanics essential for understanding the proposed shift toward abundance liberalism.

  • 2021–2023 inflation surge

    Yglesias critiques the Democratic Party's embrace of this specific economic narrative to explain inflation, a concept that directly contrasts with the market-liberal view of supply-side constraints discussed in the text.

  • Rent-seeking

    The excerpt identifies this as the core mechanism by which regulatory systems fail, providing the technical economic definition needed to grasp why the author believes deregulation is a universal solution rather than a niche preference.

Sources

Matt yglesias on libertarianism, abundance liberalism, and a possible alliance between the two

by Various · Reason · Read full article

In April, I wrote a post praising "abundance liberalism" (despite some reservations about it) and urging an alliance between abundance liberals and libertarians. Matt Yglesias - one of the most prominent abundance liberal political commentators - has written an insightful piece responding to mine. He supports the idea of an alliance and notes other points of agreement, but also makes various criticisms of libertarianism.

First - and most important - Yglesias endorses the proposal for alliance:

Somin argued that his fellow travelers in the libertarian camp should seek an alliance with the center-left. The traditional Cold War-era "fusionist" alliance between libertarians and cultural conservatives is, he thinks, dead and should be replaced by an effort to build bridges with the abundance camp on the center-left, even if he thinks we don't go far enough.

I am all for this alliance.

Welcome! Yglesias's support - while much more significant than mine (because he has much greater political influence) - may not by itself be sufficient to make this alliance happen. But it's definitely a step in the right direction.

Second, Yglesias seems to at least partly agree with my argument that many liberals are inconsistent in endorsing deregulation in some areas (e.g. - housing and immigration), while refusing to do so in others, without offering any consistent rationale for the distinction:

[T]he concept of abundance ought to mean more than progressives owning up to overregulation of the housing sector being a problem.

Housing is the single largest sector of the economy, so problems there loom unusually large….

But the basic principles about the positive-sum nature of market exchange and the tendency of regulatory systems to become cesspools of rent seeking are quite general.

In a saner, better world, the Trumpian turn away from liberalism inside the Republican Party coalition should have meant a process of reconciliation between Democrats and at least some of the market liberals of the center right. Instead, a large share of the Democratic Party has reacted to the Republicans' abandonment of markets by simply embracing alternative zero-sum accounts of the economy like greedflation.

The point here is indeed "quite general" and Yglesias and other abundance liberals have done valuable work in making that clear, including, for example, in his recent article condemning efforts to bar institutional investors from owning housing. They don't generalize this insight as much as they should. But the recognition that it is indeed a general ...