Classical Liberalism

Classical Liberalism

A political philosophy emphasizing individual freedom, limited government intervention, and free markets.

Individualism

The belief that individuals should have the right to pursue their own interests.

Market Efficiency or Efficient Resource Allocations

Achieved in free markets where supply and demand determine prices.

Role of Government in Classical Liberalism

Minimal, focused on protecting property rights and maintaining order.

Social Contract Theory

Proposed by Thomas Hobbes; people agree to give up some freedoms for government protection.

Natural Rights

Inherent rights to life, liberty, and property, as stated by John Locke.

Invisible Hand

A concept by Adam Smith; market forces guide economic activity towards efficiency.

Division of Labor

Specialization that increases productivity and economic growth.

Tragedy of the Commons

Overuse of shared resources leading to depletion, explained by Thomas Malthus.

Spontaneous Order

Complex systems that emerge from individual interactions, as described by Friedrich A. Hayek.

Knowledge Problem

The limitation of central planning due to lack of comprehensive information.

Entitlement Theory

Justice achieved through just means of acquiring property, articulated by Robert Nozick.

Voluntary Exchange

Individuals engage in mutually beneficial transactions.

Negative Freedom

Freedom from interference by others.

Positive Freedom

The ability to achieve one's potential.

Procedural Justice

Justice based on fair procedures and processes.

Public Choice Theory

Analyzes political behavior through the lens of self-interest.

Rational Expectations

Individuals form future expectations based on available information.

Strengths of Classical Liberalism

Promotes individual liberty, economic growth, and limited government.

Weaknesses of Classical Liberalism

May not address inequality or the role of government in social justice.

State of Nature

A hypothetical condition where life is solitary, poor, nasty, brutish, and short without government. (Thomas Hobbes)

Limited Government

Government's role is to protect individual rights and not infringe upon them. (John Locke)

Consent of the Governed

Government's legitimacy comes from the consent of the people. (John Locke)

Free Trade

Unrestricted trade benefits all nations involved. (Adam Smith)

Population Growth

Population growth tends to outpace food production, leading to poverty and misery. (Thomas Malthus)

Rule of Law

A predictable and stable legal framework is essential for economic prosperity. (Friendrick Hayek)

Minimal State

Government's role is limited to protecting individual rights and enforcing contracts. (Robert Nozick)

Night-Watchman State

A metaphor for a government that only provides basic security and protection. (Nozick)