Classical Liberalism Overview and Influences

Classical Liberalism Overview

• Classical Liberalism emphasizes individual freedom as the driver of societal progress, advocating minimal government intervention in personal and economic matters.
• It promotes the idea that allowing individuals to act freely leads to societal advancement.

Historical Influences on Classical Liberalism

• Rooted in Protestant theology, stressing individual responsibility for salvation.
• Shift from agriculture and guild systems created economic independence.
• The Age of Reason fostered belief in human rationality, leading to optimism about human nature and governance.

Key Thinkers and Their Contributions

• John Locke

  • Authored "Second Treatise of Civil Government."
  • Introduced the concept of government based on consent, individual rights protection, and separation of powers.

• Montesquieu

  • Wrote "The Spirit of the Laws."
  • Advocated for constitutional government through the Separation of Powers to prevent concentration of power.

• Adam Smith

  • Considered the father of modern economics.
  • Promoted market economy principles, arguing for individual freedoms and competition without government interference.
  • Coined the term "invisible hand" in "The Wealth of Nations," advocating for market self-regulation.

Economic Principles

• Free Trade

  • Smith's approach to unimpeded trade avoids restrictions and promotes efficiency.

• Self-Interest in Economic Transactions

  • Economic activity is driven by self-interest, which leads to better resource allocation than government planning.

Philosophical Foundations

• Jeremy Bentham

  • Established utilitarianism, focusing on maximizing happiness and the overall welfare of society.
  • Encouraged critical questioning of traditional ideas and policies based on their utility.

• Utilitarianism

  • Focuses on policies that enhance societal progress and happiness.

• Greatest Good Principle

  • Advocates for actions that benefit the majority as the best approach to governance.

Economic Policies and Theories

• Laissez-faire Economics

  • A doctrine promoting minimal government intervention, enabling individuals to pursue self-interest freely.

• Thomas Malthus

  • Authored "Essay on the Principle of Population," warning that improvements in living standards could lead to population surges, ultimately negating those gains.

• David Ricardo

  • Advocated for international trade based on comparative advantage to achieve optimal outcomes.

The Law of Accumulation

• Describes how increased machinery investment leads to capital growth, promoting industrial productivity.

John Stuart Mill

• A well-educated philosopher who synthesized ideas from Bentham and Smith.
• Wrote "On Liberty," defending individual freedoms and the importance of diverse ideas in society.

"On Liberty" Highlights

• Advocates for maximum personal freedom, stating that only harm to others justifies interference in individual liberties.
• Emphasizes that society benefits when all ideas can be freely expressed and debated, underscoring the importance of tolerating unpopular opinions.