9.4 Classical Liberalism vs Modern Liberalism

Question 1

What is the classical liberal outlook on human nature?

Answer 1

Individuals are rational or capable of rationality and prefer to pursue their enlightened self-interest

Question 2

What is the modern liberal outlook on human nature?

Answer 2

Individuals crave freedom but also understand that they have obligations to help others less fortunate

Question 3

What is the classical liberal outlook on the state?

Answer 3

The state should be limited and controlled by a government based on representative democracy

Question 4

What is the modern liberal outlook on the state?

Answer 4

State intervention can be justified on the grounds of social justice, equality and social welfare

Question 5

What is the classical liberal outlook on society?

Answer 5

Society is naturally competitive, being made up of free individuals pursuing their own interests

Question 6

What is the modern liberal outlook on society?

Answer 6

Society should embrace a degree of social welfare and social justice

Question 7

What is the classical liberal outlook on the economy?

Answer 7

The economy should be based on free markets, free trade and a lack of state intervention

Question 8

What is the modern liberal outlook on the economy?

Answer 8

The injustices thrown up by capitalism should be reduced by the state through welfare, equality of opportunity and limited redistribution of income

Question 9

What did neo-liberals believe about the modern liberalism’s belief in an enabling state?

Answer 9

It erodes rugged and egotistical individualism

Question 10

What did Friedrich von Hayek argue about an enabling state?

Answer 10

That individuals become dependent on a state that supports them from ‘cradle to grave’

Question 11

What did Hayek argue about the welfare state?

Answer 11

That its exponential cost would eventually bankrupt the state and society

Question 12

What is a Robert Nozick quote about tax?

Answer 12

‘tax, for the most part, is theft’

Question 13

What did Robert Nozick argue about John Rawls’ principles of redistribution and social justice?

Answer 13

That they were essentially socialism

Question 14

What was Milton Friedmann critical of?

Answer 14

The supposed efficacy of Keynesian economics

Question 15

What do neo-liberals see the role of the state being limited to?

Answer 15

Controlling inflation via ‘monetarism’

Question 16

What are 4 similarities between the views of classical liberalism and modern liberalism?

Answer 16

• Both have a positive view of human nature
• Both agree on the concept and principle of limited government
• Both believe in rationalism and individualism
• Both are enthusiastic supports of capitalism and the free market and oppose nationalisation

Question 17

What are 4 differences between the views and classical liberalism and modern liberalism?

Answer 17

• Classical liberals advocate negative freedom whereas modern liberals advocate positive freedom
• Classical liberals argue for a minimal state whereas modern liberals argue for an enabling state
• Classical liberals prefer laissez-faire economics whereas modern liberals are prepared to use Keynesian economics in certain economic situations