liberalism: differing views

Question 1

minimal state (classical liberalism)

Answer 1

• all liberals to some extent believe that the state is incompatible with individual liberty
• classical liberals believe in the minimal state.
• a ‘minimal’ state has enough institutions to keep order in society, such as law and order institutions, but has limited intervention in the economy and in the personal lives of individuals
• the minimal state and classical liberals support the idea of negative freedoms
• a minimal state is one where the state does not infringe on the personal realm - individuals are entitled to private space without a moral code imposed by the state

Question 2

the economy (classical liberalism)

Answer 2

• minimal states support a laissez-faire economy
• the market is able to allocate scarce resources most efficiently
• state control of the market doesn’t allocate resources to those who value them most, and so the economy doesn’t run efficiently
• for example, the Liberal governments of the 19th century supported free trade and tariff reform

Question 3

freedom (classical liberalism)

Answer 3

• classical liberalism believes in negative freedom which is the idea that less state intervention is good so that individuals in society become self-reliant and take more responsibility for themselves
• classic liberals are opposed to people becoming dependent on the state
• natural rights: a right is a freedom afforded to use, god given universal rights that are fundamental to human beings and therefore inalienable
• natural rights are more commonly referred to now as human rights – rights which are fundamental and universal; people are entitled to them by virtue of being human
• Locke said there are three rights – life, liberty and property
• Jefferson said – life, liberty, and the pursuit of happiness

Question 4

utilitarianism (classical liberalism)

Answer 4

• moral theory focusing on consequences, rather than intentions
• good action = good consequence
• good action = maximise pleasure and minimise pain, with happiness being the ultimate goal (greatest good for the greatest number)
• utilitarianism is other regarding because our actions should be for the greatest good, for the greatest number
• Kant’s view on morality is focused on intentions of an action, rather than consequences
• we should think about our actions as a disinterested, uninvolved bystanders; or how you would advise others

Question 5

invisible hand - Adam Smith

Answer 5

the invisible hand of the market refers to the idea that the market, through the self-interest of individuals and firms, can coordinate economic activity and allocate resources efficiently

Question 6

philips curve

Answer 6

• inflation and unemployment have an inverse relationship
• higher inflation is associated with lower unemployment and vice versa

Question 7

the state (classical liberalism)

Answer 7

• the traditional liberal position is that the state is a necessary evil
• classical liberals (and modern-day neoliberalism) advocates egoistical individualism and a laissez-faire attitude towards the economy
• the state must intervene to uphold the rule of law and to protect society from foreign invasion (harm principle)
• these interpretations require institutions, such as police forces, armies, laws and a judiciary

Question 8

‘divine right of kings’ and government by consent

Answer 8

• the kind of liberal state Locke advocated was in direct contrast to the absolute monarchies that dominated Europe when he was writing
• power in these countries was dominated by monarchs who received legitimacy via the religious belief of the ‘divine right of kings’, which asserted that the sovereign was ordained to rule by god
• Locke disagreed with such an irrational interpretation of god’s will, arguing instead for government by consent, whereby the state would be the result of a social contract enshrining the natural state of freedom into the law of government
• individuals would enter into a social contract voluntarily and consensually, whereby government was subject to the consent of the people and in return would agree to obey its laws
• this would ensure that ‘government should always be the servant, and not master, of the people’

Question 9

state intervention (modern liberalism)

Answer 9

• modern liberalism believes in the power of free-market capitalism to distribute resources in society
• however, there may be structural reasons that stop a fair distribution of resources and opportunities
• structural reasons include poverty, unemployment and lack of education
• these contribute to an inefficient allocation of resources, and market failure
• therefore, state intervention is acceptable to enable a fair distribution of resources
• it is acceptable for the state to intervene to correct market failure

Question 10

enabling state (modern liberalism)

Answer 10

• modern liberals support the enabling state
• the enabling state is a larger state that provides individuals with the resources that may be necessary to succeed
• this kind of state supports individuals, rather than forcing them to be successful
• as a result, this kind of state accepts more government intervention in society and in the economy
• for example, progressive taxation can be used to raise income for social welfare programs

Question 11

positive freedom (modern liberalism)

Answer 11

• modern liberals believe in positive freedom rather than negative freedom where state intervention can ensure freedom
• this can be through increasing opportunities for citizens or through policies which reduce poverty in society

Question 12

why did modern liberalism develop

Answer 12

• industrialisation brought massive expansion of wealth for some, but also great spread of slums, poverty, ignorance, and disease
• social inequality became difficult to ignore as industrial working class were disadvantaged by low pay, unemployment and degrading conditions
• reaction to growing inequality and poverty, and the concern that negative freedom might not be sufficient for the poor to truly be considered free
• this led to a revision of the classical liberal belief that the unstrained pursuit of self-interest would produce a socially just society – equilibrium looked a long way off
• the idea of the minimal state, as the ideal was replaced by the interventionist or enabling state

Question 13

individuality (modern liberalism)

Answer 13

• it means the end goal of us is to make us the best us we can be
• Mill says that to achieve this is through reason and helping those less knowledgeable
• Mill’s higher and lower pleasures: higher pleasures include playing an instrument, reading poetry, philosophising; lower pleasures include food, alcohol and, comedy
• Mill believed that everyone was capable of appreciating higher pleasures
• he also said that it is an ‘unquestionable fact’ that, given equal access to all kinds of pleasure, people will prefer those that appeal to higher faculties

Question 14

Mill straddles the divide between classical and modern liberalism

Answer 14

• emphasises the quality of individual life
• opposed to collectivism
• committed to female suffrage and workers cooperatives
• believed power should only be exercised to prevent others’ freedoms from being restricted
• although Mill is strongly associated with classical liberalism, he later adapted his view of limited government to allow for state intervention to assist the poor who were experiencing injustice in society and the economy

Question 15

the state and modern liberalism

Answer 15

• T.H Green continued to reinterpret the role of the state so that it had a larger role in society and the economy
• the state should promote equality of opportunity through education and reductions in the influence of inherited privilege (state needs to intervene to prevent division)
• the state should organise welfare to help those unable to defend themselves against deprivation, such as the unemployed, the chronically sick, and the elderly (only with welfare programmes can people realise their freedoms/individualism
• recent liberals, such as Rawls argue that the state should also take a more proactive role in reducing inequality within society and preventing social justice (referred to now as social mobility programmes)
• Friedan argued that the state was the structure in which to guarantee societal and economic equality of opportunity for women

Question 16

‘the general theory of employment interest and money’

Answer 16

• in John Maynard Keynes’ book ‘the general theory of employment interest and money
• a rational construct that argued against Sith’s laissez-faire economics
• the state (Keynes argued, was capable of managing the economy so as to secure full employment
• Keynes was a modern liberal and wished to rectify the negative consequences of economic downturns as he felt mass employment negated individual freedom
• these economic ideas are known as Keynesianism