Hobhouse was important in underpinning the turn-of-the-century 'New Liberal' movement of the Liberal party under leaders like Asquith and Lloyd George. He distinguished between property held 'for use' and property held 'for power'. Governmental co-operation with trade unions could therefore be justified as helping to counter the structural disadvantage of employees in terms of power. He also theorised that property was acquired not only by individual effort but by societal organisation. Essentially, wealth had a social dimenson; it was a collective product. This means that those who had property owe some of their success to society and thus had some obligation to others. This, he believed, provides theoretical justification for a level of redistribution provided by the new state pensions.
Hobhouse disliked Marxist socialism, describing his own position as liberal socialism and later as social liberalism. Hobhouse occupies a particularly important place in the intellectual history of the Liberal Democrats because of this.
