liberalism: the state n economy

the state:

  • liberal thinking is focused on the nature n role of the state + organisation of govt power

    • core assumption: liberty (freedom) of one person is in danger of becoming a license to abuse another ie every person can be a threat to, and at threat from another

    • ∴ liberty requires ppl to be safeguarded from encroaching on the liberty of others

    • »»» the role of the state

  • classic form of argument within john locke’s idea of a social contract:

    • social contract: a (hypothetical) agreement among individuals through which they form a state in order to escape from the disorder and chaos of the ‘state of nature’

the social contract argument:

  • initial premise: all individuals are greedy n power-seeking

  • assumed consequence: therefore, a ‘state of nature’ would exist - an unending civil war pitting everyone against everyone

  • liberalist consequence: but, all humans are rational, therefore they would enter into a ‘social contract’ to establish a state w/o which, order and stability would be impossible

conclusions about liberalism n the state:

  • political authority comes from the people

    • people ‘fashion’ the state and its exists to serve their needs n interests

    • There is no 'absolute obligation' to follow the laws of the land – it is a contract and if the contract is broken by government then legitimacy disappears – thus justifying rebellion.​

  • The state is created by agreement of all people​

    • Therefore it exists as a 'natural referee' between different individuals and groups and is 'devoid of bias'.

  • govt is a potential tyranny against the individual

    • humans are all self-seeking » when given power, it is used for their own benefit, at others’ expense

“Power tends to corrupt, and absolute power corrupts absolutely…. Great men are almost always bad.” (Lord Acton, 1956)

  • liberalism supports constitutionalism democracy

  • constitutionalism: a theory or practice of limiting govt power through the use of external (legal) and internal (institutional) constraints

  • democracy: rule by the ppl: democracy implies both popular participation and govt in the public interest n can take a wide variety of forms

  • constitutionalism has two forms:

    • written constitution defines government powers and duties.

    • internal checks on power, like separation of powers.

    • inspired by Montesquieu's vision of power checks.

  • democracy has its own conditions:

    • free, fair elections with universal suffrage.

    • civil liberty ensures freedom from government.

    • majority rule shouldn't oppress minorities.

    • individual rights mustn't be sacrificed for popular will.

  • democracy safeguards individuals from government intrusion.

    • John Locke advocates for expanded franchise to protect natural rights.

    • J.S. Mill sees democracy fostering human development.

classical liberalism: the State:

  • Limiting power​

    Power should be divided into three branches of government:​

    Legislature​

    Executive​

    Judiciary​

    ​

    Each would act as a check on the others.​

    The minimal state would be based on Locke’s principle of ‘government by consent’ and regular elections. These principles influenced the creation of the US Constitution.​

    Limiting jurisdiction​

    The minimal state should operate under the rule of law, whereby all citizens enjoy foundational equality.​

    The minimal state would protect property rights, enforce legal contracts by law and regulate monopoly power that operated against the interests of consumers.​

    Limiting the electorate​

    Classical liberals were in favour of representative democracy rather than direct popular democracy. J.S. Mill believed only those with an appropriate formal education should be allowed to vote. Mill feared that a popular democracy might lead to ‘tyranny of the majority’.​

modern liberalism: the state:

  • J.S. Mill, a classical liberal, shifted towards state intervention later.

  • T.H. Green advocated for an enabling state to support individual potential.

  • State should ensure equality through education.

  • Welfare needed for vulnerable groups like the unemployed and elderly.

  • John Rawls expanded on the enabling state, proposing increased taxation for social justice.

  • Betty Friedan used enabling state concept to challenge sexual discrimination.

where do key thinkers stand?

classical liberalism: minimal state

modern liberalism: enabling state

john locke

js mill (later writings)

js mill (early writings)

betty friedan

john rawls

mary wollstonecraft

th green

the economy:

  • Liberals trace their roots to Adam Smith's critique of mercantilism.

  • Mercantilism emphasises state control over trade for prosperity.

  • Liberal economics views the economy as a free market driven by individual decisions.

  • Market freedom entails choices in production, consumption, and employment.

  • Market interactions are voluntary and contractual, emphasising wealth acquisition.

  • Liberalism aligns with utilitarianism, recognising human pursuit of material gain.

  • Classical liberals see the market as a network of commercial relationships.

  • Consumers and producers communicate desires through the price mechanism.

  • This leads to a belief in a free market without government interference » laissez-faire

  • Modern liberals see the market as flawed, prone to short-term benefits, unemployment, and inequality.

  • They advocate for government regulation and management of the economy. » Keynesian economics

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