Democracy and Exchange

Democracy and Exchange

Schumpeter, Galbraith, T.H. Marshall, Titmuss and Adam Smith

David Reisman

Democracy is the rule of the people. Exchange is supply and demand. Individualism, agreement, tolerance and choice are the underlying values that make possible the productive collaboration of the market and the state. This book assesses the theories of democracy and exchange of five interdisciplinary thinkers who tried to unite political and economic reasoning into a single theory of moderation and pragmatic management.

Chapter 8: T.H. Marshall: Citizenship and Social Rights

David Reisman

Subjects: economics and finance, economic psychology, history of economic thought, institutional economics, social policy and sociology, economics of social policy


Citizenship is ‘a status bestowed on those who are full members of a community’ (Marshall, 1950: 18). It is integration and affiliation, belonging and entitlement. Citizenship is a ‘basic human equality’ in respect of rights and duties, a ‘universal birthright’, a ‘single uniform status’ a ‘universal status’ (ibid.: 6, 19, 21, 44). It is a common identity. It is a link with the past. Citizenship is conservative and continuing. It is ‘a claim to be admitted to a share in the social heritage’ (ibid.: 6) and not just the carpe diem that nips in opportunistically and takes. Citizenship is ‘a direct sense of community membership based on loyalty to a civilisation which is a common possession’ (ibid.: 24). It is not just a legal document which allows its bearer to pass through Heathrow visa-free. Citizenship does not presuppose blood kinship or putative parentage. There is no fiction that all Englishmen are descended from English, even if there is a myth that all Tiv are descended from Tiv. Subjective and sentimental, however, what citizenship does presuppose is a perceived stake in the ‘national consciousness’ and in the ‘common heritage’ (ibid.: 25). In the age of free enterprise and civil rights, Marshall observes, this felt commitment was all too often associated with the narrow exclusivity of ‘jingo patriotism’ (ibid.) and the aggressive national-ism of Rule Britannia. In the new age of welfare services and social rights, that same one-nationness must build upon the ‘material enjoyment’ (ibid.: 28) that integrates the masses with...

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