To what extent are liberals united in their views on economy?

Introduction

• Liberals broadly believe in an economy that protects individual freedom, upholds private property, and offers opportunities for individuals to pursue their own interests.

• However, the degree of state involvement necessary to secure these aims divides liberals.

• Therefore, this essay will argue that liberals mostly agree on economy, by discussing capitalism, different economic approaches and equality of opportunity.

Para 1 = Agree - Modern Liberalism

• Modern Liberals largely support capitalism.

• Thinkers such as John Rawls support economic freedom as it encourages free markets.

• This meant that when people are free trade, compete and pursue their economic interests within a capitalist system, it leads to efficient allocation of resources and innovation, benefitting society as whole.

• Therefore, capitalism is essential for individual liberty and societal prosperity.

Para 1 = Agree - Classical Liberalism

• Classical liberals also support capitalism as it promotes private property.

• Thinkers such as John Locke saw private property as a natural right and an extension of one’s labour that was essential to individual liberty and economic independence.

• This means capitalism gives individuals a stake in society, allowing them to reap the benefits of their work.

Para 2 = Disagree - Modern Liberals

• Modern liberals support for Keynesian economic approach.

• This argues that during economic downturns, the government should increase public spending, reduce taxes and lower interest rates to stimulate demand and pull the economy out of recession.

• Thinkers such as John Rawls believed that only state intervention through Keynesian economics can pull an economy out of recession, supporting their views on an enabling state.

• This means that through the help of the state, individuals can truly achieve freedom.

Para 2 = Disagree - Classical Liberals

• Classical liberals, in contrast, strongly support laissez-faire capitalism.

• This is very free market type of capitalism where there is minimal government intervention.

• Thinkers such as JS Mill support this by arguing that individuals and business should be allowed to do what they want as long as they do not harm anyone.

• This means that the classical liberal view of negative liberty will achieve the most individual liberty and pull the economy out of recession as state intervention will be limited and economy can fix itself.

Para 3 = Some Agree - Modern Liberals

• Liberals broadly agree that economic systems should enable individuals to achieve on their own.

• Classical liberals argue that equality of opportunity emerges naturally from the free market if individuals are left on their own.

• Thinkers such as Mill accepted minimal state intervention, as excessive interference would create conformity and limit individuality.

• This means classical liberals are confident that the markets would generate opportunity.

Para 3 = Some Agree - Classical Liberals

• Modern liberals argue that due to structural inequalities and enabling state is needed to combat this.

• Thinkers such as Betty Friedan highlighted how women were trapped by economic and social structures that restricted their chances, arguing that the state must act to remove these barriers so that women can compete equally.