Classical liberalism and modern liberalism

Define classical liberalism

Early liberals, who believed that individual freedom would best be achieved with the state playing a minimal role.

Define modern liberalism

Emerged as a reaction against free market capitalism, believing this had led to many individuals not being free. Freedom could no longer simply be defined as being left alone.

What are classical liberal’s view on the state?

• Believe that there should be a night watchman state. They define the state as a necessary evil highlighting that the state is needed in order to maintain public order and manage competing individual self interest.

• However, the state can be seen as an interfering force by imposing rules and restrictions which infringed people's freedom.

• Classical liberals believe in a completely free market.

What are modern liberal’s view on the state?

• Due to the damaging social consequences of industrialisation modern liberals believe that the state should take a proactive role in enhancing the life opportunities of the majority.

• The state should have an enabling role (Enabling state) to help individuals reach their potential not threaten their liberty. They advocate for the welfare state and the state directed economy to enhance freedom and fulfilling potential.

What are classical liberal’s view on the human nature?

• They believe individuals are self-reliant and self seeking.

• Classical liberals took an atomistic view of human nature.

• Individuals perform best when left alone and are instinctively drawn to pursue their egoistical self-interests. According to the classical view, the state gets in the way of striving and ambitious individuals.

What are modern liberal’s view on the human nature?

• They believe humans are more sociable and are more than selfish pleasure seekers.

• Humans seek higher goals like education and artistic achievement and can act collectively.

What are modern liberal’s view on freedom?

• They believe that negative freedom is too narrow and one dimensional.

• Freedom consists of more than being left alone. Positive freedom involves realising ones potential and being able to make a full range of choices.

• Negative freedom undermines liberty; the enabling state could help individuals reach their potential and thereby achieve fulfillment and self-realisation.

What do classical liberals believe about the methods of the state?

They believe that the purpose of the govt is the protection of individuals rights and therefore they limit the ability of the state to intervene in society and the economy because it would infringe on individual’s choice and freedom.

What do classical liberals believe about a limited state?

A nightwatchman state, its power restrained by a codified constitution is a classified liberal view. The state should uphold negative freedom, preventing incursion by foreign powers, would better protect an individuals ‘life, liberty and property,’ than no state, individuals would be free to pursue and achieve fulfillment. This is key not to only because rational individuals are best placed to make their own choices about how to live their lives but also about how to live their lives but also because the benefits it would bring to wider society.

What do classical liberals believe about welfare?

• If the state provides individuals with welfare, then it extends its range of responsibilities. Decisions about healthcare, education etc, are removed from the individual and made by the govt. But classical liberals believe that the govt can never make the right decisions for each individual.

• Universal healthcare can make individuals reliant on the state which limits their independence and removes the sense of satisfaction that would come from solving their own problems - additional taxation forces individuals to give up money instead of choosing what to spend it.

What do classical liberals believe about a free market economy?

They believe that the economy should be based on free market principles. State intervention in the economy should be avoided. The market should be left to regulate itself which results in competition. The market becomes varied efficient and responsive. A state dominant can be both problematic and can lead to a lack of motivation to improve quality or reduce prices.

What do modern liberals believe about state intervention?

Modern liberals believe that the purpose of govt is to create conditions where people can help themselves and fulfill their individual potential - they favour govt intervention to promote positive freedom which sees the state playing an active role in assisting individuals, helping them reach their full potential.

What do modern liberals believe about an enabling state?

They believe that negative freedom does not provide assistance to the individual and succeeds in compounding social and economic disadvantages. Positive freedom evens the playing field so that all individuals can enjoy similar equality of opportunities and justice with the state becoming an enabling state, creating conditions where people can help themselves.

What do modern liberals believe about self-reliancy?

Modern liberals agree on the importance of self-reliance but the state must be able to help the disadvantaged. The enabling state would ensure an individual’s life chances are not determined by status at birth.

What do modern liberals believe about a fair society?

The enabling state should ensure that society is fairer for example universal education, the Beverage report recognised the importance of the welfare state.

What do modern liberals believe about welfare state?

A welfare state is essential and justified since it enhances freedom and creates a social good. Financing welfare from taxation conforms to social justice. The state should allow the individuals to enjoy equality.

What do modern liberals believe about employment?

The state was capable of managing the economy so as to secure full employment. The state should directly intervene to stimulate the economy in order to achieve full employment and economic growth.