Key Ideas Of Classical Liberalism - The Economy

Question 1

What two economies are there under liberalism

Answer 1

-defence of private property = more classical
-defence of capitalism + inequality

Question 2

What is economic liberalism

Answer 2

-known as capitalism
-believe private property is natural right + that private enterprise allows individual liberty

Question 3

How does economic liberalism reflect the key thinkers

Answer 3

-locked emphasised property as a ‘natural right’ predating existence of the state
-Mill argued property facilitated individualism - incentivising individual enterprise reflecting each individuals preferences while providing send of independence

Question 4

Despite this what is good about collective ownership

Answer 4

-property owned by multitude of individuals it leads to further protection against concentrated power + overbearing rulers who threaten natural rights

Question 5

When did liberalism become associated with capitalism

Answer 5

-when Adam Smith extolled free trade + free markets late 18th C leading to liberalism being associated with private enterprise + private ownership of the economy

Question 6

How does liberalism support for capitalism economy link to human nature

Answer 6

-support for capitalism links to upbeat view of human nature
-Smith asserted that if obstacles to free trade removed + if individuals allowed to trade freely then the ‘invisible hand’ of market forces would enrich both individuals + nations

Question 7

What do liberals defence about capitalism

Answer 7

-capitalism produces inequality of outcome

Question 8

How do liberals defence this inequality capitalism produces

Answer 8

-economic liberals at Adam Smith institute assert individual wealth + individual economic success will ‘trickle down’ to the majority
-endorse Mill’s view that unequal outcomes are consistent with a ‘meritocratic’ society that encourages individualism