This article, adapted from a lecture delivered at the Albuquerque Mises Circle in September 2024, explores the historical context and contemporary challenges of liberalism, specifically classical liberalism or libertarianism. The ideology has long been characterized by a resistance to various forms of oppression, such as mercantilism, absolutism, socialism, and slavery. However, the tendency for liberalism to define itself primarily by opposition may have caused it to overlook the necessity of fostering positive institutions that can provide alternatives to the growing role of the state in society. While liberals have historically fought against injustices contributing to poverty and misery, there is a pressing need to promote and sustain independent institutions that can effectively support civil society without reliance on state authority.
The challenge facing liberalism today is rooted in the decline of the traditional institutions—family, community organizations, and religious groups—that have historically acted as counterbalances to state power. The modern state has engaged in systematic campaigns aimed at undermining rival organizations, thereby consolidating its power and establishing a pervasive dependence on government services for social needs like healthcare, education, and public safety. As a consequence, individuals increasingly view the state as the primary source of support and security in their lives, which serves to diminish the significance and effectiveness of private institutions that could otherwise foster community resilience and independence.
Historically, institutions outside the state—what Ralph Raico refers to as “society”—have played vital roles in maintaining order and providing social safety nets. From informal networks of kinship and local organizations to more formal corporations that emerged in response to weak state structures in the Middle Ages, these institutions created a legal and social framework distinct from state authority. As economic and political historian Avner Greif describes, these corporations were voluntary, self-governed associations that operated independently of state oversight, enabling various groups to protect their interests and limit the reach of governmental power. The decline of these independent entities, particularly through the rise of absolutist states, has weakened the institutional landscape, leaving citizens with diminished alternatives to state services.
With the advent of the welfare state—first pioneered by Otto von Bismarck in Germany—governments constructed direct relationships with citizens that further eroded the influence of nonstate institutions. The welfare state interjected itself into areas traditionally managed by families and local organizations, replacing social solidarity with dependence on state provisions. Consequently, the family as a foundational social unit has experienced significant decline, marked by rising divorce rates and diminishing fertility. David Popenoe’s study exposes the profound implications of these changes, indicating a societal shift toward weaker familial ties and a decreased interest in parenthood, thus reinforcing the state’s role as the primary source of support for individuals.
Public education has emerged as another key area where the state has assumed a dominant role, marginalizing private and religious schools in favor of institutions designed to instill a state-centric ideology among students. The public school system prioritizes cultural uniformity and assimilation, often stifling alternative educational approaches that might foster critical thinking and dissent from government narratives. Historical attempts in the early twentieth century to prohibit private education reveal a systemic bias against institutions that challenge state authority, culminating in laws that enforced compulsory attendance at public schools, effectively undermining parental choice and independence in children’s education.
The cumulative effects of these trends indicate a broader pattern of institutional decay, as families, religious organizations, and community groups become less relevant in the lives of individuals. This shift towards government dependency not only instills a weakened sense of local and familial solidarity but limits the ability of citizens to resist state overreach. To counteract this trajectory, it is essential for advocates of liberty to promote and reinforce the establishment of robust nonstate institutions. Whether it’s through engaging in local churches, supporting educational alternatives, or fostering mutual aid networks, efforts to reinforce these groups are crucial for rebuilding the societal fabric that can resist state dominance. In doing so, individuals can cultivate a real counterbalance to state power, fostering vibrant, independent communities empowered to shape their own destinies.