liberalism: modern liberalism
Developmental individualism: the idea that individual freedom is linked to human flourishing.
Positive freedom: the idea that freedom is about personal fulfilment and realisation of potential.
Keynesianism: an economic system that requires government involvement to stimulate the economy to achieve full employment and stability.
background:
linked to further industrialisation.
industrialisation led to slums, poverty, ignorance, disease.
social inequality evident: low pay, unemployment, poor conditions.
modern liberalism began in UK in late 1800s; later elsewhere.
belief in industrial capitalism bringing prosperity faded.
revised idea: self-interest pursuit doesn't ensure social justice.
attitudes toward state reconsidered.
minimal state couldn't address civil society's injustices.
state intervention or enabling state could be justified.
how classical liberalists view modern liberalism:
A clean break from the principles and doctrines of liberalism.
In particular abandoning individualism and embracing collectivism
how modern liberalists view themselves:
A building upon classical liberalism.
In particular, a marriage between the old and new, bridging the gap between ideological and theoretical tensions – notably over the role of the state.
the distinctive ideas (or theories) of modern liberalism are:
INDIVIDUALITY – POSITIVE FREEDOM – SOCIAL LIBERALISM – ECONOMIC MANAGEMENT
individuality:
John Stuart Mill bridges classical and modern liberalism.
Interested in political economy and women’s suffrage.
'On Liberty' (1859) is seminal text.
Mill: individual is sovereign over body and mind.
Negative freedom: absence of restriction.
Liberty is necessary but not sufficient; positive and constructive force.
Enables individuals to control lives, achieve self-realisation.
Mill rejects Bentham's utilitarianism.
Believes in 'higher' and 'lower' pleasures.
Promotes pleasures that develop intellectual, moral, aesthetic abilities.
Mill favours personal self-development; emphasises human flourishing over mere satisfaction of interests.
positive freedom:
T.H. Green critiques unrestrained profit pursuit leading to poverty and injustice.
Rejects early liberal view of individuals as self-seeking utility maximisers.
Green emphasises human sympathy and altruism.
Individuals have social responsibilities alongside individual ones.
'Socialist liberalism': caring and empathy link individuals.
Challenges negative freedom: businesses exploit for profit.
Freedom can lead to 'freedom to starve' and market choices are inadequate.
Green favours positive freedom over negative.
Positive freedom considers social disadvantage and inequality as threats.
Enabling state can expand freedom through social and economic roles.
Not a move to socialism: individual still crucial.
Goal: conditions enabling responsible, moral decisions.
Both liberal strands value individual self-reliance and responsibility.
Modern liberalism recognises need for supportive social conditions.
Aim: 'help the individual to help themselves'.
social liberalism:
Modern liberal defense focuses on welfare state and equality of opportunity.
State has responsibility to reduce social disadvantages for equal life chances.
Citizens gain welfare rights: work, education, housing.
Welfare rights are positive; rely on government actions like pensions and benefits.
UK's social liberalism influenced by Bevridge Report (1942).
Aims to tackle 'want, disease, ignorance, squalor, idleness'.
Social democratic liberalism shaped by John Rawls.
Supports relative social equality.
'A Theory of Justice' by Rawls: 'equality as fairness'.
Desire to avoid poverty stronger than desire for riches.
Rawls' difference principle: inequalities should benefit least well-off.
Rawls is liberalist, not socialist; rooted in egoism and self-interest, not social solidarity.
economic management:
Idea arises due to business' inability to ensure general prosperity alone.
Historical context: Wall Street Crash (1929), Great Depression (1930s), global unemployment.
Post-1945, all states adopt economic management; UK guided by Keynes.
Keynes opposes 'market solution' in 'The General Theory of Employment, Interest and Money'.
Economic activity determined by aggregate demand.
Government spending boosts demand; tax cuts reduce it.
In unemployment, increase spending or cut taxes to solve with budget deficit.
'Keynesian demand management': government manipulates employment for prosperity.
Modern liberals see economic management as constructive for prosperity.
Keynes not anti-capitalist; believes in regulated private enterprise.
Keynesianism credited with 1950s & 60s booms.
Neo-Keynesianism today highlights issues with unregulated capitalism: low investment, short-termism, social fragmentation.