Classical liberalism (also called classic liberalism or simply liberalism) is the original form of, and is today a tendency within, liberalism. It is a political school of thought that first emerged in the 17th and 18th centuries, upholding individualism and free market economics. Classical liberalism focuses on concepts of individual autonomy and private property, and argues that the sole legitimate function of government is to defend these. Classical liberals promote the use of precisely delineated constitutions that are difficult or impossible to modify, intended to prevent governments from assuming an interventionist role.
The term "classical liberalism" itself was coined in the 20th century, and applied retroactively to pre-1850 liberalism, to avoid confusion with an accepted modern definition of liberalism. Modern libertarians see themselves as having revived the original doctrine of liberalism, and often call themselves "libertarians", "classical liberals" or "market liberals" interchangeably.
Introduction
The classic liberal philosophy places a particular emphasis on the sovereignty of the individual, with private property rights being seen as essential to individual liberty. It forms the philosophy underpinning of the laissez-faire philosophy. The precepts of classic liberalism were probably best described by John Locke and Adam Smith, and illuminated much of the thought at the time of the American revolution. As a result, the United States Constitution and the United States Declaration of Independence are both documents that embody many principles of classic liberalism.
Modern liberalism tends to deviate from this definition of the term "liberal" in that it espouses the use of the power of government to achieve a variety of desirable goals, ranging from social justice to economic equality. Amy H. Sturgis Ph.D., an expert in Intellectual History, says (The Rise, Decline, and Reemergence of Classical Liberalism) that "Classical liberalism" includes the following:
- An ethical emphasis on the individual as a rights-bearer prior to the existence of any state, community, or society.
- The support of the right of property carried to its economic conclusion, a free-market system.
- The desire for a limited constitutional government to protect individuals' rights from others and from its own expansion
- The universal (global and ahistorical) applicability of these above convictions."
Origins
Classical liberalism is a political and economic philosophy. With roots in ancient Greek and medieval thought, it received an early expression in the 16th century by the School of Salamanca and its classic formulation in the Enlightenment tradition. The Wealth of Nations (1776) by Scottish philosopher Adam Smith is one of the classic works that rejects the philosophy of mercantilism, which advocated state interventionism in the economy and protectionism. The classical liberals saw mercantalism as enriching privileged elites at the expense of well being of the populace. Another early expression is the tradition of a Nordic school of liberalism set in motion by a Finnish parliamentarian Anders Chydenius. Classical liberalism tries to circumscribe the limits of political power and to define and support individual liberty and private property. The phrase is often used as a means of delineating the older philosophy called liberalism from modern liberalism, in order to avoid semantic confusion.
Classic Liberalism is close to 18th century Liberalism. The Wealth of Nations (1776) by Adam Smith is considered one of the classic foundations of liberalism. While Adam Smith provides an explanation of liberalism and economics, the legal and philosophical understanding originates with scholars like John Locke and evolves through Thomas Jefferson and James Madison. Immanuel Kant, in the Perpetual Peace, creates an international liberal framework to foster a sustainable world peace.
The term "liberal" derived from this time period (generally the 18th and 19th century) with its origination stemming from the belief in individual freedom, economic freedom (including free markets), and limited representative government. This original understanding of the word "liberal" carries the same meaning in a few countries, but in most countries the meaning and ideology behind liberalism differ to certain degrees (e.g. social security, tariffs, intervention and regulation into the economy, wage and price controls) from its meaning in the eighteenth century. In many countries liberalism holds a position between classical liberalism and American liberalism. Only a few major parties adhere to classical liberalism, most of the liberal parties accept limited government intervention in economics.
Classic Liberals include all original liberals such as John Locke, Adam Smith, David Ricardo, Thomas Jefferson, James Madison, John Stuart Mill with his work On Liberty
Classical liberal philosophy
Classical liberals subscribe to a very basic and universal understanding of the world and the rights of all humans. Classical Liberals believe in private property, free markets, economic competition, freedom from coercion, limited government (all economic freedom), the rule of law, and individual rights (natural rights is also used). These are inherent to all people, of all faiths, cultures, societies, ethnicities, and histories and that all peoples are capable of achieving liberal government and liberal societies not just western cultures. (Classical) liberals prefer a laissez-faire style of government with a microeconomic focus and understanding of economic operations.
Classical liberals reject wealth transfers (though admire the goal of helping the needy), tariffs, or other trade barriers such as quotas, regulated markets (also known as a Mixed economy ), capital controls, wage and price controls. As a general rule these macroeconomic policies are considered by them as reducing the general welfare of society.
Liberalism against totalitarianism
In the mid-20th century, liberalism began to define itself in opposition to totalitarianism. The term was first used by Giovanni Gentile to describe the socio-political system set up by Mussolini. Stalin would apply it to German Nazi-ism, and after the war it became a descriptive term for the common characteristics of fascist and Marxist-Leninist regimes. Totalitarian regimes sought and tried to implement absolute centralized control over all aspects of society, in order to achieve prosperity and stability. Such governments often justified such absolutism by arguing that the survival of their civilization was at risk. Opposition to totalitarian regimes acquired great importance in liberal and democratic thinking, and totalitarian regimes were often portrayed as trying to destroy liberal democracy.
In Italy and Germany, nationalist governments linked corporate capitalism to the state, and promoted the idea that their nations were culturally and racially superior, and that conquest would give them their rightful "place in the sun". The propaganda machines of these totalitarian states argued that democracy was weak and incapable of decisive action, and that only a strong leader could impose necessary discipline.
The rise of totalitarianism became a lens for liberal thought. Many liberals began to analyze their own beliefs and principles, and came to the conclusion that totalitarianism arose because people in a degraded condition turn to dictatorships for solutions. From this, it was argued that the state had the duty to protect the economic well being of its citizens. As Isaiah Berlin said, "Freedom for the wolves means death for the sheep." This growing body of liberal thought argued that reason requires a government to act as a balancing force in economics.
Other liberal interpretations on the rise of totalitarianism were quite contrary to the growing body of thought on government regulation in supporting the market and capitalism. This included Friedrich Hayek's work, The Road to Serfdom. He argued that the rise of totalitarian dictatorships was the result of too much government intervention and regulation upon the market which caused loss of political and civil freedoms. Hayek also saw these economic controls being instituted in the United Kingdom and the United States and warned against these "Keynesian" institutions, believing that they can and will lead to the same totalitarian governments "Keynesians liberals" were attempting to avoid.
Classical liberalism versus 'modern' or social liberalism
The Industrial Revolution greatly increased material wealth, but also created social problems, such as pollution, child labor, and overcrowding in the cities. Material and scientific progress led to greater longevity and a reduced mortality rate. The population increased dramatically. The downside of this was an oversupply of labor, which led to declining wages. Economic liberals, such as John Locke, Adam Smith, and Wilhelm von Humboldt felt that the problems of an industrial society would correct themselves without government intervention.
In the 19th century, the voting franchise in most liberal democracies was extended, and these newly enfranchised citizens often voted in favor of government solutions to the problems they faced in their everyday lives. A rapid increase in literacy and the spread of knowledge led to social activism in a variety of forms. Social liberals demanded laws against child labor and laws requiring minimum standards of worker safety and a minimum wage. The laissez faire economic liberals countered that such laws were an unjust imposition on life, liberty, and property, not to mention a hindrance to economic development. Thus began the struggle. On the one hand, economic liberals, who stress economic freedom and desire small governments. On the other hand, social liberals, who stress equality of opportunity, and desire a government large enough to protect citizens from the consequences of economic or natural difficulties that they consider too serious to be overcome without government aid. This 19th century social liberalism was the first significant split from classical liberalism.
By the end of the 19th century, a growing body of liberal thought asserted that, in order to be free, individuals needed access to the requirements of fulfillment, including protection from exploitation and education. In 1911, L.T. Hobhouse published Liberalism, which summarized the new liberalism, including qualified acceptance of government intervention in the economy, and the collective right to equality in dealings, what he called "just consent."
See also
External links
References
- Cato Institute About the Cato Institute
- The Rise, Decline, and Reemergence of Classical Liberalism by Amy H. Sturgis