Revision notes on Liberalism -philosophy, politics and history

Classical Liberalism (Big L) (19th Century) - Def: A political belief in which primary emphasis is placed on securing the freedom of the individual by limiting the power of the state.  In its economic form, it advocates a respect for private property and free markets.  Governments role is protect liberty and individual rights of the citizens that elected them and people can form and dissolve governments as they wish.  Classical Liberalism was the ideology of the moderate, constitutional monarch phase of the French Revolution, which promoted limited government and was based on principles of natural law.  This is often referred to as 19th liberalism. A right of center ideology on the economic spectrum. (Perspectives on Ideologies 105 – 113, 150, 274 – 277)

20th Century Liberalism (Modern) - This is in stark contrast to 19th century liberalism which states – they do not mind government regulation, helping others out, welfare state idea.  Not a violation of any fundamental right for government to regulate where people work, when they work wages they work for etc. They do not mind paying a little more tax to help others out. A left of center ideology on the economic spectrum.  

Liberalism wagers that a state... can be strong but constrained – strong because constrained... Rights to education and other requirements for human development and security aim to advance equal opportunity and personal dignity and to promote a creative and productive society. To guarantee those rights, liberals have supported a wider social and economic role for the state, counterbalanced by more robust guarantees of civil liberties and a wider social system of checks and balances anchored in an independent press and pluralistic society." (see Perspectives on Ideologies)

Laissez- Faire Economics and Democracy

• During the time of the development of classical liberalism
• Classical liberalism – belief in Free Market (Laissez-Faire)

1.  Philosophers:

• Helped to develop these ideas
• Locke
• Montesquieu

• Democracy, separations of powers (current US system of government)
• Each branch of government (executive, legislative, judicial) are given certain responsibilities in order to prevent a concentration of power in any one branch
• US system today uses this – Congress (Leg.) declares war/allots money for wars, President commands the military; House of Reps can bring their own bills, President can veto the bill, with a 2/3 majority – the House can override the presidential veto.

• John Stuart Mill

• Only limitations that should be placed on people by government is if the rights of others are infringed upon

2.  Laissez-Faire

• Capitalism at the time
• Stemmed from the opposition to mercantilism which believed that all business should help better the state
• Reduced government involvement
• Individuals are free to make their own decisions (economic)
• Belief that individuals selfishness and competitiveness will inadvertently benefit society

3.  Laissez-faire and the Industrial Revolution

• Ideas were developed during the IR in Great Britain
• Shift from its agricultural roots to the urban, factory system
• Why Great Britain?

• 1.  Location:

• Island – sea trade, large navy and commercial fleet were necessary anyways
• This created personal fortunes – ship owners and merchants
• Also gave lots of money to the government

• 2.  Government System

• Parliamentary democracy and constitutional monarchy
• Power was shared between king and parliament
• Parliament consisted of the wealthy – who welcomed any ideas that could make them money

• 3.  Writings of Enlightenment

• Advocated human reason, initiative, and individual worth
• Comers were free to make money

• Factory System:  resulted from ideas on wealth, human potential, government friendly to business, large amounts of capital (money) and cheap labour, innovation
• **Adam Smith

• “Wealth of Nations” – individuals work for their own self interest which is the foundation of the Free Market
• Invisible Hand

• Problems with Laissez faire:

• Extreme gaps between rich and poor developed
• Monopolies
• Poor working/living conditions