Key Concepts in Liberalism

Liberalism Overview

Classical Liberalism

Key Concepts:

• Originated during the Enlightenment, emphasizing individual freedoms and limited government.
• Influenced by thinkers like John Locke and Adam Smith.

Social Contract Theory

• Thomas Hobbes:

  • Context: English Civil War (1640-50) leading to King Charles I's execution.
  • Advocated a strong monarchy for stability (Leviathan, 1651).
  • Believed human nature in a state of nature is detrimental: "poor, solitary, nasty, brutish and short."
  • Proposed a social contract where individuals relinquish rights to an overpowering sovereign for protection and order.

• John Locke:

  • Context: Glorious Revolution (1688) establishes constitutional monarchy.
  • Authored Second Treatise of Government (1690) emphasizing reason as the basis of moral knowledge.
  • Introduced natural rights: life, liberty, property, and the contract's conditional nature—government must respect these rights.

Laissez-faire and Economic Liberalism

• Adam Smith:
  • Wealth of Nations (1776) promoting free trade and laissez-faire economic principles.
  • Introduced the notion of an "invisible hand" guiding economic prosperity.
  • Suggested that international trade reduces conflict between nations.

Utilitarianism

• Jeremy Bentham:
  • Critiqued natural rights theories, focusing instead on pleasure and pain (utilitarianism) as the basis for actions.
  • Advocated for government policies that maximize happiness for the largest number, protecting private rights to stimulate growth and consumption.

Movement Towards Reform Liberalism

Enlightenment and Expansion of Rights

• John Stuart Mill:

  • Critiqued utilitarianism in On Liberty (1854).
  • Proposed "enlightened self-interest" and a social conscience developed through education.
  • Called for universal suffrage, gender equality, and regulatory frameworks to manage capitalism.

• T.H. Green:

  • Advocated positive liberty focusing on the development of individual potential through government support.
  • Asserted that freedom should not just be the absence of restraint but the condition enabling individuals to contribute to societal welfare.

Welfare Liberalism

• Hobson:
  • Developed underconsumption theory, emphasizing the economic role of the state in equitably distributing resources to boost domestic consumption.
• Keynes:
  • In General Theory of Employment, Interest and Money (1936) criticized laissez-faire for enabling economic collapses.
  • Advocated for state intervention to stabilize capitalism through demand management and technocratic planning.

Contemporary Reform Liberalism

Modern Expectations

• Mixed Economy:
  • Current liberalism supports a regulated market with elements of public ownership as a counter to corporate dominance (Galbraith).
• Welfare Support:
  • Endorses welfare states and policies for income redistribution, social inclusion, and individual rights.
• Pluralistic Ethic:
  • Backs diversity and gender equality in societal norms.

Political Engagement

• Continued advocacy for free trade, hopeful for its role in reducing conflict through economic interdependence.
• Political representation through parties like Liberals in Canada and Democrats in the USA.