The Economy:
- Given that liberals generally believe that everyone should have a right to property it is inevitable that liberalism supports an economy that puts private property at the heart of all economic arrangement.
- In short, it is inevitable that liberals should support capitalism.
- Liberalism has been strongly associated with the private enterprise and private ownership of the economy. This explains why capitalism is described as an economic liberalism.
- Economic Liberalism: Another term for capitalism that emerged in Europe in the late 17th century. This liberal aspect of capitalism stems from three factors. First, it involves private property which early liberals like John Locke considered a ‘natural right’. Second, it is individualistic in theory, involving individual traders cooperating and competing. Third, it is thought to be of ultimate benefit to all – thus revealing liberalism’s eternal optimism and belief in progress.
- Although liberals and socialists share many assumptions and objectives and criticise many of the same things, liberals will ultimately defend a market-based economy and will refute the anti-capitalism message of ‘fundamentalist’ socialist
- A liberal’s endorsement of capitalism is strongly linked to the positive view of human nature.
- Adam Smith had noted that if the obstacles to free trade were swept away, “the invisible hand” of market forces would guide traders towards success and wealth would “trickle down” to everyone. – This is an optimistic tone of liberalism’s core values and some believe that this is a very naïve view.
The
State:
- Individualism is at the heart of a liberal’s view of the state.
- John Locke & Adam Smith believe that liberalism and capitalism work best when accompanied by a certain kind of state.
The
Liberal State: Origins:
- Whilst taking an optimistic view of human nature, liberals still accept the state of nature.
- State Of Nature: A philosophical device used in the 17th century by both Thomas Hobbes and John Locke to justify the very different types of the political state they were proposing. It referred to what life might have been like before laws, formal rules and governments came into being.
- Liberals argue that there would have been a clash of interests between individuals perusing their own economic agenda, Locke himself was worried about a world where the property would be fought over.
- The state is required to argue the two competing claims of rational individuals.
- The state for liberals is similar to a football referee: You can play without them but it’s better to have one who makes sure everyone is following the rules for a more equal game (a more equal society in a liberal’s case)
The
Liberal State: Objectives:
- Locke was keen to show the kind of state that would embody wider and grander principals. This was later developed into the UK Bill of Rights and the American Constitution. The key to understanding what a liberal state means is the key to understanding both of these documents.
Rejection
Of The ‘Traditional’ State:
- The state was founded as a rejection of the Enlightenment.
- The liberal state renounces the sort of state where power is concentrated in the hands of one individual and where power is exercised randomly. Leaders do not have a ‘divine right’ to govern by God.
Government
By Consent:
- The state is only legitimate only if those under its jurisdiction: In other words, governments must have the consent of the governed – voting, majorities!
- Locke maintained that the “government should always be the servant, not master, of the people”
- People in the state should have ultimate control over the state itself.
- Jean Jacques Rousseau dubbed this as a social contract
- Social Contract: Linked to the Enlightenment, philosophers such as Locke and Rousseau, this term denotes that the state should be a ‘deal’ between governments and the governed. It states that in return for submitting to the state’s laws, the governed should be guaranteed certain rights and that, if these rights are violated, so is the citizen’s obligation to obey the state’s laws.
- Citizens should be promised something in return for agreeing to accept the state’s authority.
Promotion
Of Natural Rights/Individualism:
- It is assumed that before the state was created, people always enjoyed ‘natural rights’ that allowed for self-determination – individualism.
- It is irrational for people to abandon both natural rights and individualism by submitting to any state.
- The only reason you should submit to a state is so you can promote natural rights and to also exercise these rights.
Promotion
Of Tolerance:
- Tolerance should be ensured to all those who exercise their natural rights in various ways.
- Voltaire stated: “I detest what you say but will defend unto the death your right to say it”
- John Stuart Mill developed the idea of Harm Principle: Refers to the belief that particular views and activities particularly those that might be frowned upon should be tolerated just as long as they do not harm others. Both concepts are strongly linked to the liberal belief in individual freedom.
- Men and women do not seek isolation from society but they are instead drawn to society that will accommodate their individualism.
- An example of this is religion. We find ourselves living in countries which host a variety of religions, we tolerate them and allow them to practice it. This idea has now stopped a little but is still expanding to sexual beliefs and ethnicity.
Meritocracy:
- Political power according to liberals, should only be exercised by those who show themselves to be worthy of it.
- Governments should be conducted by individuals who have won the trust of the governed.
- The meritocratic liberal state stands in contrast to the traditional state.
- Thomas Paine remarked the French Revolution as “beyond equity, beyond reason and certainly beyond wisdom”
- Aristocracy has no place in the meritocratic liberal state commended by Locke, Mill and other liberal thinkers.
Equality
Of Opportunity:
- For liberals, individuals are born equals, have equal rights and are of equal value. Often referred to as Foundation Equality: A liberal belief that every individual is born equal, with equal natural rights. Such individuals are therefore entitled to legal equality in a liberal state. This would involve equality before the law and an equal recognition of individual rights.
- If an individual fails to fulfil their potentials, they must be able to assume total responsibility for this failure and not blame the state.
Justice:
- Equality Of Opportunity: Liberals believe that all individuals should be allowed similar opportunities to develop their potential. Unlike, for socialism, however, equality of opportunity for liberalism does not exist alongside the greater equality of outcome.
- People must assume the state is going to treat individuals fairly, or justly without regard to their identity.
- Liberals should be able to assume an outcome from any complaints which they receive and get a satisfactory resolution to any grievances they have with other people.
The
Liberal State: Methods & Structures:
- Constitutional/Limited Government: The relationship between the government and the governed should be cemented with a Constitution. It should have a discussion over what the government should do and how they should do it.
- May also be described as a Limited Government: Involves a government which is limited in terms of how it can act by a constitution’s formal rules and procedures. It is, therefore, the opposite of arbitrary rule as practised in medieval, monarchical states.
- There must be a liberal constitution whereby governments must govern according to rules and procedures and they should not remove the natural rights of their citizens.
- Fragmented Government: Lord Acton described it as: “Power tends to corrupt… and absolute power tends to corrupt absolutely.”
- If the individuals are generally reasonable, it seems logical to empower as many of them as possible.
- The idea of this is heavily seen in the USA Constitution where they have lots of checks and balances which are designed to avoid power being concentrated to one person or organisation.
- Formal Equality: Individuals have the same legal and political rights in society. It places significant emphases on the ‘rule of law’ where holds that all laws passed in a state are applied to everyone which no exemptions.
- No one should be outside the law. Equal rights to even criticise the state e.g petitioning