Economy

because liberals believe property is a fundamental natural rights what is their economic belief about property

liberal economic policies put private property at the centre of their reasoning

what method does economic liberalism support

liberalism generally supports capitalism

what is a liberal economy strongly associated with

private enterprise and private ownership

who is a founding thinker of capitalism

Adam Smith

what did Adam Smith say about a liberal economy

that if obstacles to free trade were removed, the ‘invisible hand of market forces would guide traders to success’ 

what type of economics did Adam Smith advocate for

‘trickle down economics’ - reducing restrictions on trade would lead to wealth being naturally trickled down through the rest of society

what could liberal economic polices advocate for

the existence of free marker, but with some restrictions to ensure distributive justice

• restrictions put in place by the state assuming this is the will of society

what is laissez-faire capitalism

an economic system in which the state play little or no role in economic activity, allowing the free market to allocate resources

how are liberalism and capitalism synonymous

they both promote individual liberty, i.e. choose occupation/ compete in market/ buy and sell goods

what economic approach do modern liberals support

firmly support capitalism but think it should be regulated and supplemented with welfare in some areas

benefits of capitalism

its more economically efficient, enables consumers to chose, facilitates economic growth and enables countries to trade peacefully with one another