Has Liberalism Betrayed Its Classical Liberal Principles?

1318 Words6 Pages
Has Liberalism betrayed its classical Liberal Principles? Liberalism has manifested itself in two distinct forms, Classical Liberalism and Modern Liberalism. Classical liberals are a tradition within Liberalism that seek to maximise the realms of unconstrained individual actions; typically by establishing a minimal state and a reliance on market economics. In contrast, Modern liberals provide a qualified endorsement for social and economic intervention as a means of promoting personal development. Classical liberals have been defined by the desire to minimise government interference in the lives of citizens, they feel betrayed by modern liberals as they are associated with welfare provision, intervention and economic management. Classical liberalists such as Adam Smith and David Ricardo believe in the notion of economic liberalism. Mercantilism, the dominant economic idea of the 16th and 17th had encouraged government to intervene in economic life, in an attempt to encourage the export of goods and restrict imports. Smith’s economic writings attacked this idea and argued for the principle that the economy worked best when left alone by the government; He saw the economy as a market, it operates according to the wishes and decisions of individuals. Freedom within the market means freedom of choice, e.g. the ability of a business to choose what goods to sell, and the consumer to choose what good or services to buy. These relationships are therefore voluntary and contractual as they are made by self-interested individuals. Economic theory therefore drew on utilitarianism, the notion that human beings are essentially egoistical and bent on material acquisition. The thought of classical economics was that although each individual is materially self-interested, the economy itself is said to operate according to a set of impersonal pressures; market forces that tend to
Open Document