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15 Terms

1
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Modern and Classical liberalism share foundational values rooted in their views of human nature as rational;

individual freedom, the rule of law and constitutional government - but diverge significantly in how these are realised.

2
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While modern liberals build upon the legacy of classical liberalism, they …

adapt and reform key ideas, particularly the role of the state, freedom and equality.

3
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Therefore, modern liberalism accepts the core principles of …

classical liberalism, but reinterpret them to suit modern economic and social contexts.

4
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Classical liberalism, as exemplified by John Locke, sees human beings as rational, self-interested and capable of managing their own lives without undue interference. Locke’s social contract theory argued that government is legitimate only if …

it protects individuals’ natural rights - life, libert and property. In this model, the state is a minimal “night watchman”, intervening only to enforce contracts, uphold the rule of law, and protect private property.

5
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Freedom is understood negatively - as the absence of external interference - and society is seen as atomistic, composed of self-reliant individuals. Locke states in On Liberty that …

“government should always be the servant, not the master of the people”, emphasising distrust of concentrated power and a commitment to limited government.

6
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Modern liberals, however, developed their ideas in response to the inequalities created by industrial capitalism. While they retain the classical commitment to individual liberty, they argue …

that freedom must be positive = the ability to actually achieves ones potential, requiring state support.

7
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John Rawls, a modern liberal thinker, argued in A theory of Justice that inequalities are often only justifiable if they benefit the least well-off, which requires active state intervention to redistribute wealth and opportunity. His thought experiment of …

the “veil of ignorance” supports a more extensive welfare state: if individuals designed society without knowing their future social position, they would favour fairness and basic equality to avoid intolerable disadvantage, reflecting a more optimistic view of human nature as empathetic and cooperative, in contrast to the classical liberal suspicion of state power

8
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This evolution also reflects a shift from egotistical individualism to developmental individualism. Where classical liberals believed freedom lay in non-interference, modern liberals believe …

 it lies in empowerment - through education, healthcare and social security. The state, therefore, becomes an enabling force, not just a protector

9
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For example, modern liberals support state-funded services to ensure all individuals have equal opportunities to flourish, whereas …

classical liberals should view such intervention as an infringement on individual autonomy. 

10
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Economically, classical liberals such as Adam Smith championed laissez-faire capitalism arguing that the ‘individual hand’ of the market would …

produce the greatest good. Smith believed free markets encouraged competition, innovation and individual freedom.

11
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The classical liberal view links economic freedom directly with political liberty - state interference in markets is seen as a threat to both. However this optimism about …

 self-regulating markets was shaken by the great depression of the 1930s, which led modern liberals to adopt Keynesian economics.

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 Influenced by John Maynard Keynes, modern liberals argue that state intervention is essential to avoid unemployments, stimulate demand and ensure economic stability. Unregulated capitalism, they contend …

can lead to inequality and instability that undermine individual freedom in practice, even if it preserves it in theory.

13
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Critics argued that modern liberalisms interventionism can lead to bureaucracy, inefficiency and even dependency. These concerns fuelled the …

rise of neoliberalism in the late 20th century - a revival of classical liberalism, emphasising deregulation, privatisation, and a reduced welfare state.

14
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 However, modern liberals continue to defend their approach as a necessary adaptation of liberal values to a complex, interdependent society. Some thinkers, such as john stuart mil, help bridge the two traditions. While initially …

 a classical liberal, Mill later supported limited social reforms, arguing for “a two way relationship between the individual and the community”.

15
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His idea of rule utilitarianism allowed for state action if it enhanced long-term liberty, prefiguring the modern liberal belief in a supportive state. This highlights …

how modern liberalism evolved rather than rejected classical ideas.