Whither the Social Liberals?

About three years ago I became acquainted with two Liberal Democrat activists. It was the first time I had any close contact with anyone who actually identified themselves as Lib Dem, and I was keen to understand what made them tick.

As I got to know them better I was puzzled: their differences on political issues and political language was quite marked. When I asked one of them why, I got the answer 

"He's an Economic Liberal Democrat".
"And you?", I asked.
"I'm a Social Liberal Democrat".

TBH, I wasn't much enlightened by this exchange. I had heard of the "Orange Book" grouping within the party, but I hadn't paid much attention.

Now, at least since the 2010 General Election, it has become a lot clearer. The "Orange Bookers" (Clegg, Huhne, Laws, Alexander...and a few others) are disciples of the 19th Century Liberal laissez-faire doctrine that markets are supreme: they are wise and are guided by a "hidden hand". Markets know best, they must not be interfered with, governments should let events take their course. It was this nonsense that allowed the administration of Liberal Prime Minister Lord John Russell (Russell himself gets less of the blame) to let the Irish Famine of the 1840s escalate into a historic tragedy. Millions died and the rest emigrated. Many of Ireland's current problems can be traced to the aftermath of this disgraceful episode in our joint history.

The parallels (and the historical links) between "Orange Book" Liberalism and late 20th Century Thatcherism are clear. Just like Thatcher and Osborne, the "Orange Book" Liberal Democrats are Manchester School/Chicago School market disciples. They have the same faith. They speak the same language and they believe the same things.Which is why Clegg et al have settled so snugly into the ToryDem coalition: they (if not the rest of their party cohorts, and certainly not Lib Dem voters) have found their natural home.

When the question is raised: why did the Lib Dems roll over on the economy? why did they roll over on tuition fees and so many other right wing policies?, the answer is clear: they (at least the party leadership) always wanted to and always would have, given the chance.

That's the "Economic Liberal Democrats", of course. What about the "Social Liberal Democrats"? The question now becomes: what will they do now that they have been betrayed by the Orange Book squad? How can they reconcile their view that a society needs a conscience with the Thatcherite/Orange Book belief that "...there is no such thing as society..."?

If they believe that the coalition and Nick Clegg will deliver progressive social policy they are fooling themselves. Their problem is: what do they do about it?

Whither, indeed, the Social Liberals?