I'm not sure if I agree with this characterization of the current political climate; in any case, that's not the point I'm interested in. I'm also not interested in moral relativism.
As an aside, then, if anyone is interested in the sort of thing Stephenson is possibly referring to, David Foster Wallace's essay E. Unibus Pluram: Television and U.S. Fiction (1993, two years before The Diamond Age) is a classic. In DFW's version, hypocrisy was the monarch of vices for a time, although discourse was not a matter of simply pointing it out (which still required the kind of positive statement untenable to a jaded relativist) so much as satirizing it. But that kind of irony was co-opted, leaving people not only unable to take a positive moral stand but now also ineffectual in the only critique remaining. He suggested a return to sincere, positive values:
And the rebellious irony in the best postmodern fiction wasn't only credible as art; it seemed downright socially useful in its capacity for what counterculture critics call "a critical negation that would make it self-evident to everyone that the world is not as it seems." [...] Irony in sixties art and culture started out the same way youthful rebellion did. It was difficult and painful, and productive—a grim diagnosis of a long-denied disease. The assumptions behind this early postmodern irony, on the other hand, were still frankly idealistic: that etiology and diagnosis pointed toward cure; that revelation of imprisonment yielded freedom.
[...]
Rebels are great at exposing and overthrowing corrupt hypocritical regimes, but seem noticeably less great at the mundane, non-negative tasks of then establishing a superior governing alternative. Victorious rebels, in fact, seem best at using their tough cynical rebel skills to avoid being rebelled against themselves—in other words they just become better tyrants.
And make no mistake: irony tyrannizes us.
[...]
The next real literary "rebels" in this country might well emerge as some weird bunch of "anti-rebels," born oglers who dare to back away from ironic watching, who have the childish gall to endorse single-entendre values. [...] The new rebels might be the ones willing to risk the yawn, the rolled eyes, the cool smile, the nudged ribs, the parody of gifted ironists, the "How banal." Accusations of sentimentality, melodrama. Credulity. Willingness to be suckered by a world of lurkers and starers who fear gaze and ridicule above imprisonment without law. Who knows.
Neal Stephenson's The Diamond Age takes place several decades in the future and this conversation is looking back on the present day:
I'm not sure if I agree with this characterization of the current political climate; in any case, that's not the point I'm interested in. I'm also not interested in moral relativism.
But the passage does point out a flaw which I recognize in myself: a preference for consistency over actually doing the right thing. I place a lot of stock--as I think many here do--on self-consistency. After all, clearly any moral code which is inconsistent is wrong. But dismissing a moral code for inconsistency or a person for hypocrisy is lazy. Morality is hard. It's easy to get a warm glow from the nice self-consistency of your own principles and mistake this for actually being right.
Placing too much emphasis on consistency led me to at least one embarrassing failure. I decided that no one who ate meat could be taken seriously when discussing animal rights: killing animals because they taste good seems completely inconsistent with placing any value on their lives. Furthermore, I myself ignored the whole concept of animal rights because I eat meat, so that it would be inconsistent for me to assign animals any rights. Consistency between my moral principles and my actions--not being a hypocrite--was more important to me than actually figuring out what the correct moral principles were.
To generalize: holding high moral ideals is going to produce cognitive dissonance when you are not able to live up to those ideals. It is always tempting--for me at least--to resolve this dissonance by backing down from those high ideals. An alternative we might try is to be more comfortable with hypocrisy.
Related: Self-deception: Hypocrisy or Akrasia?