Beyond Weimar: The Long Crisis of Liberalism, the Political Economy of the Interwar Conjuncture and the Foundations of Neo-liberalism

This chapter examines authoritarian liberalism as a more general phenomenon ‘beyond Weimar’. It looks outside Weimar Germany and takes a longer historical perspective, revealing deeper tensions in liberalism itself, specifically its inability to respond to the issue of socio-economic inequality in a mass democracy. The major Weimar constitutional theorists—Hans Kelsen, Carl Schmitt, and Hermann Heller—had no answer to the social question as a matter of constitutional self-defence. The chapter then discusses the political economy of the various crises across Europe—in Italy, France, and Austria—revealing a similar quandary. As Karl Polanyi argued, in these contexts, the turn to authoritarian liberalism fatally weakened political democracy and left it disarmed when faced with the fascist countermovement. Later in the interwar period, proposals for neo-liberalism would be introduced, symbolized by the organization of the Walter Lippman Colloquium in 1938.