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Published online by Cambridge University Press: 28 March 2014
THE ANTITHESIS BETWEEN INDIVIDUALISM AND COLLECTIVISM which dominates political discussion of the welfare state and many other political issues confuses more than it illuminates. First, the individual of market liberal theory is a curious entity, existin solely as a disembodied unit in market transactions. Secondly, the ‘choice’ which is the means by which units in the liberal system express their freedom is highly constrained: they choose solely between items offered in the market. Such a choice confers power on the choosing individual, but it also limits that power: choices may be made only within the framework that the market provides. Liberal theory is explicit about this; it is this limitation on the behaviour of individuals that protects mankind from tyranny. But by no means all the constraints it imposes are of this kind. If consumers are ill-equiped to choose they are made dependent on the providers ofthe service, who may, if competition is imperfect, acquire something of a dictatorial position themselves.
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