Classical liberalism v Modern liberalism

Key thinkers for classical liberalism

John Locke

Mary Wollstonecraft

JS Mill

plus US founding fathers and Adam Smith the economist

revival of classical liberalism

mid 20th century with philosopher Von Hayek and the Adam Smith institute think tank

revolutionary implications of Locke’s government by consent

ideas may seem mainstream today but had revolutionary implications back in the day, helped inspire the American revolutions who proclaimed about natural rights and consent

Mary Wollstonecraft’s opinions

didn’t produce revolution but still seen as dangerous by many in authority

Negative liberty

belief held by Locke and Mill that liberty means that individuals are ‘free from’ interference by both governments and other individuals

Mill argument on exercising liberty

unless it could be proven that one man’s exercise of liberty harmed other’s ability to do so, he should be free from any interference

Locke and society

society is naturally atomistic containing many self interested and self sufficient individuals

5 features of classical liberalism

revolutionary implications

negative liberty

minimal government

Laissez faire capitalism

Ambivalence about democracy

liberty is the absence of

restraint

Thomas Jefferson quote about limited government

‘when government grows, our liberty withers’

minimal government

government that reflects the idea of negative liberty by minimising state activities and structures

Laissez faire capitalism

an economy where private enterprise and market forces exist with minimal interference from the state

Adam Smith’s argument about the positives of capitalism and who endorsed it

capitalism had a limitless capacity to enrich individuals and society as long as state intervention in the economy was severely restricted

what does laissez faire literally mean

leave alone

what were the kind of laissez faire measures smith advocated for?

the end of tariffs, duties and other forms of protectionism and the spread of free trade between nations

Classical liberals and the right to vote

most thought suffrage should just be given to those who owned property as their minority natural rights could be threatened by universal suffrage

Marx criticism of classical liberal views on democracy

as the vote was to be confined just to property owners, classical liberalism was just a philosophical cover for bourgeoise class interests

Was Mill ambivalent to democracy

more resigned to the inevitability of democracy and it would eventually compliment the developmental aspect of human nature

why could democracy be positive for liberal ideals according to Mill

the process of rationally deciding who to support was a form of political education which would enhance capacity for reason

Why was Mill still a bit hesitant about universal suffragw

in the 19th century most adults had no formal education so were ill equipped to make rational choices, universal education must precede universal suffrage

Mill on education and tyranny of the majority

he was confident that universal education would establish a liberal consensus in society so the traditional fear about democracy causing tyranny of an illiberal majority would recede

modern examples of people thinking illiberal views are down to lack of education

some remain voters in 2016 noted that only a very small number of university graduates voted leave

Mill and university education

individuals with a university education were particularly rational and therefore deserved more than one vote in elections

when did modern liberalism emerge

late 19th century and is now the most powerful form of liberalism in europe and the usa

key thinkers of modern liberalism

TH Green, Betty Freidan and John Rawls

people modern liberalism is linked to

FDR, Lloyd George and Keynes and the Beveridge report

Beveridge report

1942

what was modern liberalism a response to?

the social and economic changes that had occurred since the times of Locke especially the industrial revolution

Why did the Industrial Revolution challenge classical liberalism?

Because most people were no longer independent, but relied on factories for work and landlords for housing — they lacked real freedom.

Why did Locke's idea of laissez-faire and natural rights seem less realistic by the 19th century?

Because individuals were now controlled by powerful social and economic forces, not just the government.

How did modern liberals respond to new social challenges?

Thinkers like T.H. Green argued that liberty was now threatened by poverty and inequality, not just by kings or the state.

How did modern liberals rethink the role of the state?

They believed the state should help people achieve real freedom by tackling social and economic barriers.

Examples of 20th century modern liberalism in action

• Lloyd George’s ‘people’s budget’ which introduced state pension in1908

• FDRs new deal in 1930s

• Beveridge report 1942

Which thinker is most strongly linked with the idea of positive liberty

TH Green

positive liberty

Positive liberty is the freedom that comes when individuals are enabled to achieve self-fulfilment when they wouldn’t have been able to do so if left alone

enabling state

linked to notion of positive liberty, it is a state that has been extended so its activities liberate individuals from social and economic problems to enable them to reach their full potential

only more government will…

enable individuals to overcome socioeconomic threats to freedom

Von Hayek on positive liberty

merely ‘socialism in disguise’

what does an enabling state look like

larger, with more laws, state spending and taxation

how is variable income tax still consistent with government by consent

even though some people would have to pay more tax, they could still be persuaded that this was in their self interest as rational people don’t like inequality

what type of economics are favoured by modern liberals

Keynesian economics

What did Keynes believe minimal government causes

periodic mass unemployment which causes a loss of freedom for millions of people

liberal democracy and modern liberals

positive liberty and an enabling state required the embrace of universal suffrage

TH Green on democracy

‘if the state is to do more for its people, then the state must do more to secure their consent’

how have modern liberal parties sought to expand democracy

reduced voting age, elected house of lords and devolution

modern liberalism and reservations about democracy

little interest in direct democracy and referendums and has been willing to limit representative democracy through HRA which transferred power to unelected judges

Modern liberals and brexit

is an example of Mill’s tyranny of the majority, such big issues are best left to liberal minded parliaments

5 ways modern liberalism has abandoned classical liberal ideas

• positive liberty including active intervention to enable people rather than leaving them alone

• favour an enlarged state

• taxation not theft but a means to increse public spending

• favour Keynesian capitalism rather than laissez faire

• champion democracy rather than being wary of it

5 ways modern liberals have retained classical liberal principles

• both have an optimistic view of human potential

• both believe in rationality and tolerance of minorities

• both see individualism as the end goal

• both favour capitalism

• both believe in government by consent and constitutional states

modern liberalism and tolerance

sought to update classical liberal belief in tolerance through social liberalism

social liberalism

calls for legislation that makes discrimination against individuals on the grounds of race, gender, sexual orientation illegal who

who is known for developing social liberalism

Betty Freidan who argued that too many individuals were denied equality of opportunity due to essentialist factors like their race and gender

what did freidan call for

positive discrimination

how is positive discrimination consistent with liberalism according to Freidan

it is consistent with the original aim of the liberal state which is the promotion of tolerance and equal opportunity

human nature tension

Classical liberals believe humans are naturally rational and self-reliant, needing minimal interference. Modern liberals believe these traits are potential qualities that must be nurtured by an enabling state

role of the state tension

All liberals want a limited, rule-bound state based on consent, but classical liberals want minimal intervention to protect negative liberty, while modern liberals support more state action to enable positive liberty

also differ on democracy with modern liberals favouring representative democracy, while classical liberals feared it could threaten property rights.

society tension

all liberals believe society precedes the state and that certain rights are natural however, classical liberals see it as a collection of autonomous individuals whereas modern liberals think that industrialisation has left individuals less autonomous and in need of greater state support

the economy tension

all agree that the economy should be based on private enterprise but classicals favour laissez faire capitalism but modern liberals prefer Keynesian capitalism

Keynesian capitalism

state management of market forces