In their policies, new liberals and social democrats might seem similar, and they certainly do cross over, such as in the 'third way' politics of Clinton and Blair. The difference, however lies in the reasons by which they come to their policies - new liberals advocating welfarism as a way to enfranchise the individual through increasing their positive liberty, whilst the social democrats see it as a redistributive measure to create more equality between individuals in what they still perceive as a collective society, albeit one which centres around a free market.
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