Responding to Classical Liberalism Notes

Responding to Classical Liberalism

Liberalism

  • Liberalism is a collection of ideologies committed to the principles of dignity and freedom of the individual.
  • It has faith in human progress and favors decentralized power politically and economically.
  • It respects the independent reasoning of the individual.

Consequences of Industrial Revolution & Capitalism

  • The success of the Industrial Revolution and capitalism resulted in the valuing of industrial efficiency and the accumulation of wealth.
  • Governments did not see intervention on behalf of disadvantaged citizens as necessary.
  • A gap emerged between the new class of entrepreneurs and the rest of society, leading to new ideologies as a response.

Values of Socialism (Collectivist) vs. Classical Liberalism (Individualist)

Values of Socialism (Collectivist)

  • Collective Interest: Humans should be cooperative, helpful, and compassionate.
  • Collective Responsibility: Society, through government, should be responsible for the well-being of its members.
  • Economic Equality: The government should intervene in the economy (e.g., taxing profits and earnings, offering social programs) to ensure a more equitable distribution of wealth.
  • Public Property: The government should own major industries and run them on behalf of the people. Profits should be kept by the government and redistributed throughout society.
  • Cooperation: People should cooperate to achieve collective goals.

Values of Classical Liberalism (Individualist)

  • Self-Interest: Individuals should act in their own self-interest.
  • Individual Rights/Responsibilities/Freedoms: Individuals should be responsible for their own well-being.
  • Economic Freedom: The economy should be determined by market forces (supply and demand). The government should not intervene.
  • Private Property: Individuals should have the right to own, buy, or sell property.
  • Adherence to Collective Norms: People should follow rules and norms that benefit society. Society should be structured so that there is equality among the people.
  • Competition: Competition benefits society when people work in their own self-interest, leading to innovation, motivation, and lower prices.
  • Rule of Law: No one is above the law, and each individual is accountable to the law.

Classical Conservatism & Edmund Burke

  • Classical Conservatism: Advocated a return to pre-Industrial past.
  • Edmund Burke viewed events like the French Revolution as flaws in following equality, individualism, and freedom.
  • He believed that establishing institutions run by the educated was needed to control the uneducated/irrational masses.

Core Beliefs of Classical Conservatism:

  • Society is an organic whole with a hierarchy to organize it.
  • Those at the top have the greatest abilities.
  • People are not equal in skill.
  • Government should be chosen by an elite electorate with special rights, responsibilities, and privileges.
  • Leaders should be humanitarian, caring for the welfare of others.
  • Stability is a key concern, including law and order and maintaining customs & traditions that keep society bonded.
  • Classical Conservatives regarded Rousseau’s idea of rule by “general will” as unrealistic and dangerous.

Tyranny of the Majority

  • "In a democracy, the majority of the citizens is capable of exercising the most cruel oppressions upon the minority.” – Reflections on the Revolution in France 1790

Spectrum of Ideologies

  • Collectivism: Socialism, Marxism/Communism (Karl Marx), Utopian and Democratic Socialism (Robert Owen, Charles Fourier)
  • Individualism: Liberalism, Classical Liberalism (Adam Smith, John Stuart Mill), Modern Liberalism (early feminists, human rights activists, labor unions)
  • All communists are socialists, but not all socialists are communists.

Karl Marx and Marxism

  • Marxism is a socialist ideology (more radical) often referred to as communism (or scientific socialism).
  • Marx focused on the struggle between classes (high and low) throughout history.

Communist Manifesto

  • 1848: The Communist Manifesto was published.
  • It advocated for overthrowing capitalism, with the proletariat (workers) taking power from the bourgeoisie (factory owners) and eventually creating a classless society.
  • It proposed establishing a Command Economy, where the government makes all decisions.

How the proletariat would gain the means of production according to The Communist Manifesto:

  1. Abolition of property in land and application of all rents of land to public purposes.
  2. A heavy progressive or graduated income tax.
  3. Abolition of all right of inheritance.
  4. Confiscation of the property of all emigrants and rebels.
  5. Centralization of credit in the hands of the state by means of a national bank with state capital and an exclusive monopoly.
  6. Centralization of the means of communication and transport in the hands of the state.
  7. Extension of factories and instruments of production owned by the state; the bringing into cultivation of wastelands, and the improvement of the soil generally in accordance with a common plan.
  8. Equal obligation of all to work. Establishment of industrial armies, especially for agriculture.
  9. Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country by a more equable distribution of the population over the country.
  10. Free education for all children in public schools, abolition of child factory labour in its present form. Combination of education with industrial production.
    • -Karl Marx and Friedrich Engels, "Proletarians and Communists," Manifesto of the Communist Party, 1848.

Democratic Socialism

  • Change should happen gradually (revolution not required).
  • It embraces Marxism in terms of striving for a classless society.
  • It embraces liberalism – democracy and individual rights & freedoms.

Principles of Democratic Socialism

  • People are born free and with certain political rights (life, liberty, happiness).
  • Economic inequality exists between classes, and government should work to increase economic equality.
  • Key industries should be publicly owned.
  • The government supports labor rights.
  • Extensive government social programs should be implemented, including unemployment insurance, health care, and education.

Triangle Fire

  • The 1911 Triangle Shirtwaist Factory fire in New York City resulted in 146 deaths, mostly immigrant women.
  • It was due to a lack of regulation and safety inspections.
  • This was a significant event regarding the movement toward modern liberalism.

Case Studies of Democratic Socialism

  • Labour Movements
  • Affirmative Action
  • Canada’s CCF
  • Quiet Revolution
  • Cradle to the Grave

CCF in Canada

  • The need for increased intervention in the economy arose during the Great Depression.
  • The Co-operative Commonwealth Federation was founded in Calgary in 1932 (J.S. Woodsworth – Regina Manifesto Principles).

Regina Manifesto

  • Shelters for jobless and homeless.
  • Pensions (fund for people who worked throughout adulthood but didn’t have family members who could take care of them as seniors).
  • Health Services subsidized (reduced cost – partially paid by government).

Tommy Douglas and CCF

  • Tommy Douglas was the Premier of Saskatchewan, elected in 1944.
  • He established the first Democratic Socialist Government – a social welfare movement.
  • Policies developed later became part of what we see today: job creation, social programs, union support.
  • CCF later became the NDP.

Quebec’s Quiet Revolution

  • Jean Lesage (Premier) increased the government's role in education and the economy.
  • A Ministry of Education was developed, separate from the Catholic Church.
  • Opportunities for Francophones in post-secondary education increased.
  • A welfare state was established, with access to health care, education, family allowance, and public ownership of hydroelectricity.

Quebec’s continued Democratic Socialism

  • Levesque & the Parti Quebecois focused on Quebec Sovereignty and developing Democratic Socialism.
    • Public insurance program (Pharmacare)
    • Childcare programs ($7 / day)
    • Longer, better-paid parental leave regulations

Sweden: Cradle to the Grave Socialism

  • “Cradle to the grave” care for all (Daycare, Preschool, Health care, Education).
  • Social programs are paid for through high progressive taxation.
    • Canadian rates: 15 – 30\% federally; 4 – 24\% provincially
    • Sweden: 29 – 59\%
    • Direct Taxes: Income tax 30-55\%, real estate tax, corporate tax, national tax
    • Indirect Taxes: National Sales Tax (Value-added Tax 25\%); excise tax (alcohol, tobacco, fuel, energy, waste, gambling)

Case study: Finland and Cohousing

*Cohousing: A cohousing community is a type of intentional community composed of private homes supplemented by shared facilities
*Cohousing facilitates interaction among neighbors for social and practical benefits. economic and environmental benefits

Child Care in Canada

  • In some countries with mixed economies, governments promote economic equality by introducing a social safety net. Governments provide a wide "safety net" of social services such as unemployment insurance and old-age pensions so that all people have their basic needs met. Governments are able to provide these programs based on income generated through taxes. Those who have higher incomes pay higher taxes, and the money is redistributed to people with lower incomes in the form of social services. In Canada, some benefits are universal in that they are given to all Canadians, but the majority are provided to those most in need. The Child Tax Benefit and Employment Insurance are examples of this.
  • As more and more parents entered the work force in the late 20th century, the issue of child care took on increased importance in many liberal democratic countries. Parents and educators recognize the importance of early childhood development, and economists recognize the benefits of increased workforce productivity among parents whose children have good quality child care. Others are concerned with the employment and contributions to the regional economy by the child-care sector. The issue of providing for quality child care has been addressed by the Canadian government in various ways over time.

Political Positions on Child Care

  • Conservative Party: Provided the Universal Child Care benefit of 1200 per year (before tax) in direct support for every child under 6; invested 250 million per year to assist provinces and territories in creating new child care spaces; pledged to create 125 000 new daycare spots within five years of 2008.
  • New Democratic Party: Would establish and fund a Canada-wide child care and early learning program (Early learning and Child Care Act) with a pledge of 1.45 billion; advocate for high quality, accessible, affordable, non-profit, and licensed child care; create 150 000 new child care spaces in the first year, growing to 220 000 spaces per year in the fourth year; develop a Children's Nutrition Initiative.
  • Liberal Party: Would set a goal of spending 1.2 billion annually to create new early education and child care spaces; establish new agreements with provinces and territories to create child care spaces and increase accessibility; make provinces accountable for how money is spent; introduce a new refundable child tax credit worth 350 to families for every child under 18; provide up to 1225 per year to Canada's poorest families through a new Guaranteed Family Supplement
  • Bloc Québécois: Agrees with the provincial government of Québec by supporting a system of daycare services where the cost to parents is offset by state subsidies, and allowing all daycare centres recognized by the government to provide an educational program matched to the age (0-4) of the children. The cost is $7 per child per day

Government Intervention

Government Laws and Regulations:

  • To protect consumers, producers, and society in general (e.g., safety standards, food inspection, environmental laws, labor laws).

Government-Owned Businesses (Crown Corporations):

  • To provide services that the private sector was unable or unwilling to provide, especially utilities, transportation, communications, and essential services (police, armed forces, customs and immigration).
  • To stimulate regional economies.
  • To rescue key private companies facing bankruptcy.
  • To make money for the government itself (Trend since the 1990s = privatization).

Government Budget and Financial Policies:

  • Fiscal policy (varying taxing and spending on health care, defense, education, welfare, infrastructure, etc.).
  • Monetary policy (central bank varying interest rates to stimulate or slow down the economy).

Income Redistribution:

  • Progressive taxation to pay for social welfare programs.
    • Old Age Security
    • Child Tax Credit (Family Allowance)
    • Employment Insurance
    • Social Security (welfare)
    • Health Care
  • (Trend since the 1990s = to limit the universality of these programs)

Addressing Problems of Classical Liberalism

  • Welfare Capitalism
  • Feminism
  • Welfare State
  • Keynesianism

Welfare Capitalism

  • Need: To consider the rights of workers & develop social conscience.
  • Response: Initiatives by industrialists use legislation to give workers protections.
    • Limited working hours, minimum wage, safety net (pension, medical insurance).
  • Address the desire from workers to form labour unions & increase actions of government.

Limits of Welfare Capitalism

  • Focuses on employment, doesn’t address social issues like education & child poverty.
  • WWI reform enthusiasm dwindles because of the need for industries to compete in war.

Factory Acts 1810

  • Government regulations are not viewed as necessary or welcome at the time.
    • Decreased working hours
    • Regulate the age of child workers
  • Slow acceptance over time for labour standards.
  • Workers wanted more reforms & consultation in the process.
  • Sadler Report Findings

Labour Unions & Standards

  • Workers form unions to gain the right to organize and bargain collectively.
  • They seek better hours & wages and demand the right to strike if not met.
  • Previously, workers were believed to occupy a subordinate place in society.

Applications in the USA

  • The Gilded Age | Progressive Era

Sherman Anti-Trust Laws

  • Trusts are forming in industries, leading to collusion (e.g., Rockefeller & Carnegie).
  • Interventionist law to preserve competitive behavior in the market.
    • Peaceful boycott
    • Collective bargaining
  • Extended by William Taft (1909-1913).
  • Roosevelt – Square Deal – Progressivism – Further Reform to Curb worker abuses in the free market.

Roosevelt’s Square Deal

  • Both labour and capital must be treated fairly.
    • Arbitration and compromise between United Mine Workers & owners of a Pennsylvania mine.
  • National Progressive Party 1912 with the following agenda:
    • Universal Suffrage:
      • Is not a true democracy if political rights are denied based on sex
    • Prevent industrial accidents, illness, overworking, involuntary unemployment
    • Minimum safety standard
    • Prohibit child labour
    • Minimum wage standard

Economic Structure Prior to Great Depression

  • 1920s: The belief was that there was no limit to economic growth.
  • Post-war growth and rebuilding were encouraged.
  • There was huge expansion of industry and agriculture.
  • Many people were getting loans to help them expand (buy now and pay later).

Power

  • What is power?
  • How does who holds power impact you?
    • Individually
    • Collectively
  • How is it expressed (rightly or wrongly) in
    • liberal-democratic societies
    • non-liberal democratic societies
    • illiberal societies

Universal Suffrage

  • Franchise for all citizens.
    • Evolved from 1867 – 1919 from being viewed as a privilege for few to a right.
  • Consider biases reflected in voting restrictions.
  • What other changes to restrictions in voting may be challenged in the future?

Feminism

  • Men and women are to be treated equally in all respects.
  • “Separate spheres” of 19th century – women are inferior and should participate in domestic life
  • Gradual involvement in public life & activism emerged
  • 1860s suffragists explore the right to vote – extended to the right to hold office, marriage rights, divorce, abortion
  • Entrenched in the Charter of Rights and Freedoms today

Intersectional Feminism

  • Kimberle Crenshaw coined the term in 1989.
  • “There are lots of different parts of our [person]hood. And those parts – race, gender, sexuality, and religion, and ability – are not incidental or auxiliary. They matter politically.” – Dr. Brittany Cooper

Positive vs Negative Freedom

  • Negative Freedom – freedom from government
  • Positive Freedom – government creating the conditions so everyone can take advantage of economic opportunities.