Chapter 3.2: Classical liberalism Flashcards
What belief did Adam Smith shared with mercantilists about the international political system
conflictual nature of the international system and the need to sacrifice economic gain for national defence
What was the heart of Adam Smith’s liberal critique of mercantilism?
rejection of state intervention in the economy
Where, liberal economy advocates a market economy that promotes individual enterprise.
The state’s role is to support, not hinder, the free interplay of market forces
What are the key principles of liberal thinking?
Remember L.I.M.P
Limited government
Individualism and individual liberty
Market mechanism
Progress in history
Describe liberal principle ‘individualism and individual liberty
In the words of John Stuart Mill, ‘the free development of individuality’ is at the heart of liberal politics.
The pursuit of individual self-interest is both an expression of liberty and the engine of social and economic progress
Describe liberal principle ‘Market mechanism’
market most effective mechanism for coordinating individuals pursuit of self-interest.
It guarantees the optimal allocation of resources in a world of scarcity.
The development of the market and the division of labour is the prime source of economic growth
Describe liberal principle ‘limited government’
government have detrimental effect on individual liberty and the functioning of the market.
They seek to limit the right of government to interfere in society and the economy, but differ as to the precise role that government plays in promoting individual and societal well-being.
Describe liberal principle ‘progress in history’
liberal principles allow societies to develop their economic and political potential and realise prosperity and peace over time.
Why did liberals reject the international economy as a zero-sum game?
instead, all nations can benefit from an expanding global market through promoting free trade and the international division of labour
Example: Adam Smith criticised Britain’s trade restricting practices. Obsession with relative gains had held back the prosperity of the nation.
In what issue did liberal followers of the 19th century depart significantly from classical liberal roots?
Issue on international anarchy and security
‘Peace through trade’
