Although I often allow myself to be identified as "left wing," I find this use of political terminology pigeonholes me in a way that I don't like. I find I agree with those people who are "left wing" more than "right wing" most of the time, but sometimes I am not sure which "wing" really applies to me. Here I want to present a different way of thinking about politics.
The Third Way represents a new social, economic, and political way of thinking. Normally, politics in conventional parlance is assumed to follow a "Left/Right" axis. It's assumed partisans on either side lean toward either socialism or capitalism, as if these two economic systems exhausted all possible forms of political economy. My goal here is to complicate, rather than simplify. Politics doesn't merely follow a linear axis, and there are more options than two.
| ATTRIBUTES | Capitalism | Socialism | "Third Way" |
|---|---|---|---|
| Dominant Sector | Private Sector | Public Sector | Civil Society |
| Ownership of Production | Individual/Corporate Ownership | State/Government Ownership | Worker/Employee Ownership |
| Sites of Production | Private Firms | State-Run Factories | Industrial Cooperatives |
| Workplace Organization | Management Control | State Control | Economic Democracy (Worker Control) |
| Model of Life | Individualism | Communism | Communitarianism |
| Political Economy | Laissez-Faire | State Intervention | Syndicalism |
| Mode of Distribution | "Free" Markets | Centralized Distribution | Decentralized, Local Networks |
| Priorities | "Rational Self-Interest" | "Classless Society" | Conviviality, Diversity, Sustainability |
| Stakeholders | Investors, Shareholders | Political Parties/"Vanguards" | Communities, NGOs |
| Goals | Increase Profit (Economic Growth) | Increase Production | Increase Quality of Life |
"Third Way" economics is based primarily on the simple idea of economic democracy: extending democratic control to the economic sphere. While capitalism and socialism seem to be poles apart, they are really quite similar in some distressing ways. Both capitalism and socialism rely on unsustainable growth for their goals. Although capitalism allows labor unions, and socialism supposedly represents labor through labor parties, in neither case is there direct (syndicalist) labor control of production. Both capitalism and socialism often wreak havoc on civil society, where associations between people exist neither for profit nor power. Both systems rely on centralization of control of production - either in government bureaucracies or in monopolistic multinationals. The Third Way represents a way out of these trends.
| Social Freedom (horizontal axis) --> Economic Freedom (vertical axis) | Least | Less | More | Most | |
|---|---|---|---|---|---|
| Most | Absolutism | <-- | Social Darwinists | --> | Anarchism |
| More | /\ | Conservatism | 3Way | Libertarianism | /\ |
| Reactionaries | 3Way | "Centrism" | 3Way | Revolutionaries | |
| Less | \/ | Authoritarianism | 3Way | Liberalism | \/ |
| Least | Fascism | <-- | Totalitarians | --> | Communism |
What's being shown in this table is fairly simple. As we increase economic freedom in society, people can engage in less regulated economic transactions, but this tends to increase competition and the formation of hierarchical economic elites. Social Darwinists tend to approve of this fact because they see this as survival of the fittest, whether it's the king and feudal barons, or CEOs and robber barons, at the top. As we decrease economic freedom in society, there tends to be more equality and fairness, but individual initiative and creative entrepeneurialism also tend to disappear. Totalitarians tend not to mind this fact because they want the government to have total control of the economy.
As we increase social freedom in society, people can exercise more liberties and freedoms, and their rights become more respected, but a sense of social or communal obligation sometimes disappears. Revolutionaries tend to want to overthrow any kind of social order, so they don't mind this. As we decrease social freedom in society, there are less problems of lawlessness and disorder, but people begin to feel their individual lives are too closely monitored and controlled. Reactionaries don't mind this because they always look backwards to eras of "law and order."
The Third Way position hovers all around the margins of the center of this diagram, basically. It rejects both economic hierachies (which tend to result from too much economic freedom) and political hierarchies (which tend to result from too little social freedom.) Still, it doesn't really represent what some people might call "Centrism" either. Centrists seek constant equilibrium among all forces, and this might neither be attainable nor desirable.
The current exemplar of 'centrism' in the U.S. is Ross Perot, who basically rejects dogmatic views of either less or more taxing or spending, in favor of balancing the budget. Rather than arguing for less or more government, Perot seems to argue for "best" (most at equilibria? most managerially efficient?) government. He doesn't in any way come close to the Third Way vision, because he seems to be arguing for fixing the existing socioeconomic order.
Another way of looking at the Third Way vision - the three slogans of the French revolution were liberty, fraternity, and equality. Various systems today tend to emphasize the tradeoffs of liberty vs. equality - the individual against the totality. Third Way brings the "fraternity" back into the equation. The paramount interest is neither the individual nor the State; it's communities, nongovernmental nonprofit organizations, social groups, cultural institutions, decentered networks of people.