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Anne Salmond: Hayek’s bastards, revisited

June 6, 2026
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Anne Salmond: Hayek’s bastards, revisited
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Remark: Is neo-liberalism – supposedly all about freedom – only a new type of feudalism?

The wealthy man in his fortress, the poor man at his gate?

And residents again to forelock-tugging peasants, anticipated to do what they’re instructed and be pleased about the privilege?

As for the poor, clamouring for meals parcels, “Allow them to eat cake!”

In a Newsroom article, ‘Hayek’s Bastards,’ 18 months in the past, I examined the origins and modus operandi of neo-liberal ideologies, together with some so excessive that it appeared unlikely they might take maintain in New Zealand. 

There have been the concepts of Curtis Yarvin within the US, as an example, who argues that authorities ought to totally be run as a enterprise and the nation state changed by a ‘sovcorp’ or ‘sovereign company republic,’ with a sovereign CE.

This has come to move within the US, with Donald Trump as a deal-making CE who surrounds himself with the trimmings of sovereignty, together with gilt-laden ballrooms, obsequious courtiers, and disastrous international wars.

In New Zealand, our model is extra modest, with a Prime Minister much less capable of insist on the gilt-laden trappings.  However, Christopher Luxon clearly sees himself as operating a authorities as a enterprise, with residents as clients and himself as a CE.

In enterprise, nonetheless, the most effective buyer is a rich one, whereas one with out cash is nugatory, commercially talking.  CE will domesticate rich clients, and provides them particular privileges, however solely for many who pays.  

One can see how a PM who sees themselves as a CE, and whose former enterprise affords completely different requirements of service to clients based on their potential to pay – First Class, Enterprise Class, Premium Economic system and Economic system (ignoring those that can’t afford to fly) – would possibly assume that this logic continues to be related.

It is a fundamental class mistake, nonetheless. Not like companies, governments move legal guidelines that apply to everybody, and in a democracy, these are speculated to serve the pursuits of as many voters as potential, not simply the rich and highly effective.  In a democracy, too, each citizen is meant to have an equal say in how the nation is run.

If a PM who sees himself as a CE of an organization begins providing particular privileges to rich ‘clients’ – as an example, the correct to draft legal guidelines that serve their very own pursuits, and have them enacted by Parliament (eg. within the current local weather regulation lobbying scandal, one can see how rapidly which may result in a collapse of religion in democracy.

This little question explains the flowery efforts made to cover the particular law-making privileges supplied to Fonterra and Z Power in that case – the usage of non-public emails and hand-delivered paperwork to the Prime Minister’s workplace, the failure to reveal these beneath the OIA, the failure to see how fallacious that is.  It’s a clear instance of how rapidly democratic ideas and practices could be corrupted.

It additionally is sensible of the position of a former workers member of the New Zealand Initiative – a assume tank funded by firms – because the Chief Coverage Advisor within the Prime Minister’s Workplace accountable for these efforts.

The opposite facet of this coin is even much less engaging – the dismissal of ‘clients’ who aren’t rich.  In case you are operating a rustic as a CE of a enterprise, then ‘clients’ who lack the power to pay aren’t worthy of significant consideration – the disabled, the homeless, these on welfare, youngsters dwelling in poverty – even when your personal insurance policies are accountable for their predicament.

If the rich and profitable have higher worth than others, then a Prime Minister or a cupboard minister would possibly nicely assume that since they’re rich and profitable, they themselves are entitled to privileges that they then deny to others – a state-funded lodging allowance, as an example, or all kinds of different state-funded perks and advantages.

The important thing level is that this isn’t only a defect in private morality.  Its all of a bit with a philosophy that sees life as a pursuit of non-public benefit, through which those that succeed are entitled to their privileges, whereas others would possibly deserve nothing, not even a spot to reside or sufficient meals to eat – together with youngsters whose mother and father are struggling.

The coalition authorities calls it ‘powerful love.’ I name it merciless, and a fast method to destroy a wholesome society.

When Peter Thiel, a US billionaire, New Zealand citizen and libertarian thinker (additionally quoted within the ‘Hayek’s Bastards’ article), says that ‘I now not imagine that freedom and democracy are appropriate,’ I agree.

The concept of unfettered freedoms for rich elites is incompatible with human rights in a democratic society.  Its additionally mistaken, and non-adaptive. 

People who care just for themselves, blind to the influence of their wishes on others, hurt or destroy the relations that bind households and communities collectively. They’re described as narcissists or sociopaths for that reason, inimical to the well being and happiness of others.

Its not shocking, then, that neo-liberalism’s try to show self-interest right into a philosophy for conducting human affairs has proved to be a non-adaptive catastrophe. It makes an attempt to unwind these collective efforts which have led to human success and survival.

As many others have proven, this denial of the elemental have to take care of others has led to an excessive focus of wealth, alongside poverty and distress for a lot of, social pathologies and the unravelling of the earth methods that assist human life on the planet.

It additionally helps to elucidate the rise of leaders who’re conceited and self-important at greatest, and narcissistic dictators at worst. Nobody of their proper minds would assist such a philosophy, if they might see clearly the way it works, and for whom. 

That’s why these few who do profit – not less than within the brief time period – spend such large quantities of cash to regulate the levers of energy, whether or not by donations and favours to politicians, or by buying and controlling media and ‘assume tanks’ to silence critics, spreading confusion and casting doubt on the options.

The options do exist, nonetheless, and the earlier we discover them in New Zealand, the higher.

First, we’d like leaders who perceive that they’re there to ship well being, prosperity and happiness to as many voters as potential, not simply the rich and privileged.

Second, these leaders have to put this philosophy into motion, strengthening and upholding democratic ideas and practices as a matter of urgency. 

To realize this, correct restraints have to be placed on lobbying, company donations and disproportionate entry to governance, within the pursuits of all New Zealanders, not simply the rich and highly effective.

Residents’ assemblies and choose committees ought to be deployed to foster full participation in democratic decision-making, and restore religion in democracy.

Politicians should additionally take into account whether or not the privileges and advantages they allocate to themselves are truthful and proportionate to these loved by different New Zealanders.

Third, these leaders have to strengthen civil society in New Zealand in each approach potential, in households, native authorities, hapū, charitable organisations and societies, slightly than attempting to centralise energy and decision-making in Wellington.

That centralising tendency in itself is an indication of conceitedness, amongst politicians of all political stripes. They assume they know higher than these they’re speculated to symbolize, and that usually results in their worst failures.

Fourth, they need to take a look at initiatives elsewhere on the earth that strengthen and restore real democracy, take care of individuals and land, and tax in methods which might be truthful and   profit as many voters as potential, slightly than providing non-public benefit to the rich and privileged.

That is in some ways a conservative agenda, one which understands what’s value combating for and upholding in human affairs – honour, decency and justice, as an example.  There’s nothing ‘woke’ about it.

Such an agenda would resonate with a really wide selection of New Zealanders, so long as it’s real, and backed by competence in supply. I hope we see a reputable model of it on provide on the subsequent election.

The submit Anne Salmond: Hayek’s bastards, revisited appeared first on Newsroom.



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