To What extent do liberals agree on the economy?

Intro

- They fundamentally agree in capitalism and limited state intervention
- But they greatly differ in the ways they believe the economy should be ran.

P1: State Intervention

- Both agree on the idea that free markets promote economic activity and the creation of wealth but disagree on level of intervention

- CL believe the economy should follow a 'Laissez-Faire' Structure. This means that the state is rarely justified in interfering with the economy.

- CL such as JSM believe in limited gov so little as practicable interference in soc, allowing individual choice and freedom to pursue happiness without restrictions

- However, ML prefer Keynesian econ rather than 'laissez faire' due to the ML belief of an 'enabling state'

- ML like Keynesian econ as it allows the gov to manage demand and stimulate econ to prevent econ slumps as have econ growth and full employment

- this helps individuals reach their best potential

- Overall, there is fundamental disagreement on how the economy should be handled due to the differences in state intervention

P2: Property Ownership

- All agree that the possession of private property and property ownership is necessary

- Liberals believe that all humans are born with a set of natural rights

- Locke (CL) would agree as he believes in society private property is a natural right

- Locke ' gov has no other end, but the preservation of rights'

- Similarly, Rawls (ML) agrees with Locke (Locke's natural laws) regarding importance of private property ownership as private enterprise gives people the incentive to achieve

- They fundamentally agree on the economy regarding social contract, rights and ownership

P2: Taxation

- Differing views on taxation

- CL believe taxation should be limited as it is an infringement of negative freedom. Moreover, it punishes the hard work and success off those who earned the money

- on the other hand, ML would agree that taxation is a key process for the implementation of positive freedom

- this is cos gov can play pos role in econ by providing econ freedom. Supported by their view of developmental individualism so would want taxes to help poorest live their potential

- Therefore there is clear disagreement

Conclusion

Modern liberals and classical liberals have similar views on the economy,

- However complications arise when discussing the economic divide between the rich and poor.

- Fundamental decisions on the economy such as state having minimal control over the economy is agreed.

- Greatly differ on how econ should be run