Liberalism Flashcards
Liberalism (overview)
= political and moral philosophy based on the rights of the individual, consent of the governed, liberty, equality before the law and political equality. Liberals espouse various views depending on their understanding of these principles
- Classified into classical + modern liberal thought
- Human beings at forefront of liberal ideology - maximum freedom - equality and political rights
- Individual unique - people choose what path they want to take and can flourish to reach their full potential
- Reformation - read Bible for themselves, don’t rely on priests / Pope
- Enlightenment - turn to logic - individual thinking:
– Everyone has free will
– Everyone is best judge of their own interests
– Life should be shaped by their own actions + decisions
Human Nature
= collection of inherent qualities essential to the individual
- Importance of individual - rational creatures - positive potential of humanity - can create positive progress
1) Rejection of mediaeval notion of human nature in place of optimistic view
- Trad = humans flawed, imperfect - must turn to God for mercy and forgiveness
- Liberals = capacity to bring about progress + great human happiness - individuals guided by reason / rationalism
2) Innate reason
- Believe innate reason is found in debates, peaceful arguments + discussion
- Plan your own future rather than relying on ‘fate’
3) ‘Problems are merely challenges awaiting reasoned solutions’
- Use reason and determination to solve problems, achieve what the individual wants in life
- Rationality = universal, so reason should lead to consensus
4) Self-seeking and self-serving
- Associated with egotistical individualism
- Liberals argue innate reason prevents selfishness, as people should be aware and sensitive of perspectives of other people
- Individuals living in peace + harmony with each other
Liberty
- Classical liberals believe that liberty consists in each person being left alone, free from intrusion and able to act freely. This is negative liberty.
Negative – The Absence of Restraint (Classical):
– The state can intervene to prevent harm to others = Mill’s harm principle -outlined in ‘On Liberty’.
[I] Mill and Negative Liberty
= Individuals should only be subject to external restraint when their actions potentially affect others, not when their actions only affect themselves
[II] Locke and Negative Liberty
- Objected the right of authoritarian governments to make decisions on behalf of the people
- Freedom can never be absolute but must be exercised under the law
- “Where there is no law, there is no freedom”
[III] Bentham and Negative Liberty
- Human actions are motivated by the pursuit of pleasure and avoidance of pain
- This is a mechanistic view of liberty and human nature where people are motivated by rational self-interest
- Bentham believes in the greatest happiness for the greatest number or a Utilitarian society
Positive – The Capacity to Act and Realise Potential (Modern)
– T.H. Green argued that society was an organic whole. People pursue common good + self-interest. Humans are both individual and social
- Idea individuals control their own destiny - with states needing to intervene sometimes
[i] Berlin and Positive Liberty
- Facilitates creation of a welfare state
- Concerns internal factors that “determine someone to do, or be”
[II] Wollstonecraft and Positive Liberty
- Society is only as free and progressive as its individual members
Equality
Different types of equality:
1) Equality of opportunity
2) Foundational equality
3) Meritocracy
4) Equality and freedom
Equality of opportunity
- Equal chances to rise and fall. Liberals accept differing outcomes; people have different abilities and potential. One should be free to fulfil this potential; there is a need to break down social barriers.
– Trudeau (2017) amended the Canadian Human Rights Act to add “gender identity and expression” to the list of federally prohibited grounds for discrimination
– Equality Act 2010 – Protected characteristics.
Foundational Equality
– Humans have rights by virtue of being born, which cannot be violated. All have equal entitlement.
– Individuals should enjoy the same legal and political rights in society, ensured by equality before the law and equal voting rights.
- Foundational equality can be related to formal equality. The liberal world-view favours equal status for all members of society – ‘difference blind’.
– Gladstone’s 1884 Reform Act included proposals that would give working class men equal voting rights.
– Wollstonecraft – ‘A Vindication of the Rights of Women’ (1792) – Women are entitled to equal education, pursuit of careers and property
Meritocracy
= Society organised on the basis that success is based on abilities and determination. Those with different talents should be awarded differently.
- The resulting social inequality is beneficial as it promotes work and the fulfilment of potential.
– “An injustice is tolerable only when it is necessary to avoid an even greater injustice.” – Rawls
-Defines ppl by ability, not social background
– Thomas Paine remarked, when justifying the French Revolution, that hereditary rule was “beyond equity, beyond reason”.
– Gladstone introduced competitive examinations for entry into the civil service in the 1870s, bringing an end to making appointments based on aristocratic connections
Equality and Freedom
- Conflict exists between equality and liberty. Society must choose between equality of outcome or the preservation of individual liberty
– Milton Friedman – “a society that puts equality ahead of freedom will end up with neither equality nor freedom.”
– Hayek – “a society that does not recognise that each individual has values of his own… cannot really know freedom.”
- Modern liberals favour state intervention to narrow social inequality. True equality is not possible without social justice. They do not believe in total equality
Pluralism
Pluralism = Dispersal of Power
- A commitment to diversity. Diversity is healthy and desirable as it safeguards individual liberty and promotes debate and understanding. Power must be widely dispersed in society
Social Interpretations
1) Ethical or Moral Pluralism
- The liberal state should not decide any value is more valid than another. It should promote a series of state-led policies designed to promote greater formal equality.
– “True pluralism… rejects the view that all conflicts of values can be finally resolved by synthesis” – Berlin
2) Cultural Pluralism
- A promotion of diversity in society, but diversity must exist within the framework of liberal values.
– Patriot Act 2001 which increased police surveillance and punishment for crimes of terrorism, rejected ideologies and beliefs that preach violence and oppression
–General rise of counter-terrorism groups; UN Office of Counter Terrorism
3) Political Pluralism
- Tolerance of moral, cultural, and political diversity is essential for freedom
- Only a democracy in which diverse groups of individuals can compete, with the state acting as a neutral arbiter, is truly a liberal democracy
- Lack of pluralism leads to alienation, thus a lack of democratic participation
– Native American representation in US government (Only 2 have served in Congress despite making up 2% of pop)
Pluralism and Toleration
- Pluralism provides a basis for toleration
- Willingness to accept that others are different, with values to which one may disagree
- Tolerance allows the greatest possible freedom and autonomy of the individual
- However, tolerance can only be extended to cultures, values and beliefs that are themselves tolerant and in keeping with the rules of the liberal state.
– Anti-Social Behaviour, Crime and Policing Act 2014 = forced marriage is illegal in the UK despite it being considered a cultural ritual in some communities
Pluralism and Democracy
- Offers a justification for Liberal Democracy
= Pluralism is the theory that power is not concentred in the hands of an elite but dispersed. This is also the fundamental root of democracy.
- Competing groups produce equilibrium and stability by endorsing the democratic political system that allows the potential to access power
– 10th Amendment highlights the dispersal of powers between states. This allows competition between the federal and central which should create an equilibrium of power as they contest.
- A lack of pluralism within democratic systems, leaves way to autocratic regimes, evidenced with the rise of Nazi Germany from the remanets of liberal Weimar
Rationalism
Rationalism
= Humans are governed by reason, so should be given as much freedom as possible
Implications:
Free to choose one’s own Path
- Regardless of societal norms, liberals believe in self-expression, guided by free will
- Champion the rights of minority groups – Black Lives Matter and Black History Month, etc…
Freedom of Movement
- Liberals welcome those feeling from persecution
- Freedom of movement is a central tenant of liberalism and is a logical conclusion amongst those who place reason above prejudice
– Article 21 (Freedom of movement) in the EU.
Importance of Human Happiness
– Liberals support Aristotle’s observation that “happiness is the meaning and the purpose of life”
– The rights of all adults to marry the person they love without discrimination on the grounds of race, sex, etc
- Utilitarianism seeks to maximise the level of happiness
Moral Responsibility
- Individuals should be free to make their judgments without guidance from external authorities
- These will not always be right, but it is better for individuals to take responsibility than instruction
Examples of Rationalism:
- Liberals understand that competition between bodies will draw conflict, yet the prefer rational debate and the resolving of disputes.
– League of Nations 1920 – Liberals view war as a last resort. Thus, Wilson was at the forefront of arguments for a worldwide mediator.
– EU – Supported by many liberals on the grounds that through surrendering some national sovereignty, member states derive benefits through association with each other, such as larger, free, trading areas and ease of movement
Individualism
Individualism
- Liberals seek to empower the individual with as much freedom possible
– Mill – “Over his own body and mind, the individual is sovereign”
– Gladstone – “liberalism is trust in the people”
- They stress the importance of the individual over the claims of any collective body
– Kant argued that each individual has a right to external freedom “by virtue of his humanity.”
- People should not be treated as instruments to achieve a goal but as possessing intrinsic value = Kant = ‘categorical imperative’
[I] Egotistical individualism (Classical)
- Individuals fend for themselves, there is no such thing as society
- Merely a collection of egoistical, self-interested, and self-reliant individuals. - Used to justify minimal state and is prevalent in neo-liberal thinking
– “there’s no such thing as society. There are individual men and women” – Thatcher
[II] Developmental individualism (Modern)
- Less atomised view. It assumes that we may choose to make social progress and express a degree of altruism with social harmony. This can be used to justify state intervention.
– Mill updated his ideas of individualism. He did not wish to solely liberate individuals in the present, but discover what individuals could become – “It is better to be Socrates dissatisfied than a pig satisfied”
– Mill was concerned that voters were ill-equipped to choose intelligent representatives to act rationally on their behalf. Mill argued that universal suffrage must be preceded by universal education, hoping this would promote developmental individualism
Toleration
Tolerance of Diversity
- Everyone holds equal moral worth, and everyone should therefore be granted equal rights
– Mill’s concept of ‘experiments in living’ – Free scope should be given to varieties of character. The worth of different modes of life should be proved practically.
- Society must embrace a vast array of lifestyle choices that reflect free will and ability to realise potential if there is no collective harm. We should adopt forbearance towards those who differ
Shortcomings of Toleration within Liberalism
- Liberals are comfortable with a multi-ethnic society. - The condition is that actions must be consistent with liberal principles
- Liberalism values free will as opposed to being coerced into a ‘proper life,’ rejecting traditional concepts such as forced or ‘political’ marriages and ‘extremist’ views.
– 2011, French President Sarkozy introduced a ban on the burqa and niqab in public on the grounds of protecting women’s rights.
Toleration and Liberal Democracy
- Diversity reflects an expression of the individual. Exposure to diverse ways of living is beneficial towards society
– Mill in ‘On Liberty’ argued that silencing the individual is no more just than silencing the majority.
– “I detest what you say but will defend unto the death your right to say it” – Voltaire
Classic Liberalism
1) Negative Liberty
= the absence of external constraints on an individual’s actions
- Emphasizes individual freedom and limited govt intervention
- The absence of restraint leaves the individual to pursue their own desires
- Should be free + rejecting tyranny
- Individuals have the right to pursue their own interests and goals without interference from the state or other individuals.
- Should be free to make their own choices, even if those choices are not in their best interests
– Modern examples of Mill’s Harm Principle = the Misuse of Drugs Act of (1971) - sanctions on hard drugs greater than soft drugs - state seeks to limit those actions that present a threat to others
2) Minimal State
= refers to a government that is limited in its size, scope, and power
- Under classical liberalism, the state’s role is primarily to protect individual rights and ensure the rule of law - State would be responsible for maintaining a legal system that protects individuals from violence, theft, and fraud, but not economy / social issues
- Economy = believe in free markets and minimal govt intervention
- State would only intervene in the economy in cases of market failure or to ensure fair competition
- No government control over prices, wages, or production, and individuals would be free to trade and pursue their economic interests –> reduced tax, continued national defence, stability of economy and protection of property
- Classical liberals see the state as necessary but evil. The state must be a nightwatchman.
- The state may act in an arbitrary manner to persecute certain groups
- The role of the state must be limited via constitutionalism, an independent judiciary, and the rule of law.
- The state must uphold full expression, as found within the 1st Amendment.
– “The government that is best is that which governs least” – Thomas Jefferson
– “The minds of men are of no concern to the federal government” - Jefferson
– Mill – The individual is the best judge of their own interests, and no authority can claim superior knowledge
Locke on Minimal State:
- Depicted a binding social contract “himself under an obligation to everyone of that society”
- Govt justified upon the basis of consent. The people have periodic opportunities to renew mandates
- Government must agree, in return for a mandate, to protect natural rights
- People must accept some curtailment of liberty provided they retain the option to reclaim the rights. This may even be through revolution.
Herbert Spencer on Minimal State:
- Minimal state with negative freedoms would cause survival of the fittest. Thus, the elimination of those unable to enjoy the benefits of individualism; leading to a society where rational self-reliance was the norm.
**Egotistical Individualism – Self-interestedness and self-reliance
- No such thing as society, merely a collection of egoistical, self-interested, and self-reliant individuals. Thus, a minimal state is advocated.
= emphasizes the importance of individual self-interest and personal autonomy over the needs and interests of the community as a whole
- Individuals should be free to pursue their own goals and interests without interference from others / the state
- Society is made up of individuals who are self-interested and rational and that the pursuit of self-interest leads to the greatest overall benefit for society
- Views humans as independent and self-sufficient, capable of achieving their own goals and fulfilling their own desires without relying on others
- Argue self-determination is essential to the functioning of a free and democratic society and that the pursuit of individual self-interest can lead to innovation, entrepreneurship, and economic growth
Civil Society
- Area of autonomous associations created by private citizens, for example churches and businesses.
- Society could exist without state
– Locke suggested the existence of a natural society with natural laws therefore natural rights, all of which preceded the state
– Mill = society is designed to serve individualism - states in ‘On Liberty’ that each individual strives for the freedom to life in a way that maximises self-reliance and fulfilment.
[I] Locke on Civil Society
- The right to property – “that with which man has mixed his labour.”
- This is an expression of individuals within a society
[II] Mill on Civil Society
- Property is the prism through which individuals develop their potential, providing opportunities, within civilised communities, for all to nurture their taste and judgement
Modern Liberalism
Individuality (Developmental Individualism)
= concept that emphasizes the importance of individual development and self-realization.
- Emphasizes that each individual has unique abilities and talents that should be nurtured and developed and that this development is essential for a fulfilling life
- Belief that govt policies should be designed to help individuals achieve their full potential
- May involve providing access to education, healthcare, and other resources that promote personal growth and development
Positive Liberty – The Capacity to Act Freely
= emphasizes the ability of individuals to pursue their goals and achieve their full potential
- Govt has a role in promoting positive liberty by providing individuals with the necessary resources and opportunities to achieve their goals
- By providing individuals with access to these resources, modern liberals believe that individuals can achieve their full potential and contribute to society in meaningful ways
– Universal healthcare: by providing access to healthcare, individuals are better able to pursue their goals and aspirations without being held back by health-related barriers.
– Education reform: helps to promote equal opportunity and provides individuals with the necessary skills and knowledge to pursue their goals
– Social safety nets: e.g. unemployment insurance, food assistance, and housing subsidies help to provide individuals with the necessary resources to maintain a basic standard of living, even in times of economic hardship. This helps to ensure that individuals are not held back by poverty or lack of resources
– Environmental protection: helps to ensure that individuals have access to clean air, water, and natural resources, which is necessary for their health and well-being
Social Liberalism – The Provision of Welfare
- Social liberalism is evident in two areas of modern liberalism: Social Justice and the Enabling State.
1) Social Justice
- Entails measures designed to ensure a fairer distribution of life chances within society
- Places responsibility on govt to maximise utility
– John Rawls = inequality can only be justified if it raises prosperity for all through his ‘difference principle’ –> leads to ‘Distributive Justice’ = all values must be even unless to be uneven is generally advantageous – “Justice as fairness provides what we want.”
– Betty Friedan – Too many individuals amongst western society were limited. The solution lay in positive discrimination, such as Nixon’s affirmative action through Executive Order 11478.
2) Enabling State
- State should accept some level of responsibility rewards our welfare needs
– DLG = Liberal Reforms = National Insurance Act (1911), Pensions Act (1908)
– Beveridge Report (1941) - 5 giants - welfare state should provide = “the cradle to the grave”
- Welfare state is consistent with the maximisation of freedom and equal opportunities as “a starving man cannot be free,” (Beveridge)
- Disadvantaged require a degree of state assistance to experience liberty. The state is therefore justified in allocating a modest redistribution of wealth.
- To fund it they favour progressive taxation - must be moderate as harsh tax contradicts self-reliance
– Welsh Labour setting the maximum level of council tax premiums on second homes at 300% from April 2023
Political Liberalism
Social Contract Theory
= hypothetical agreement amongst individuals forming a state to avoid the chaos of the state of nature
– Hobbes (Leviathan, 1651) = The state of nature was one in which there were no enforceable criteria of right and wrong. Human life was “solitary, poor, nasty, brutish and short.”
- Both parties to the contract behave as if it were tangible and real
– Paine - the contract = “the only mode in which governments have a right to arise”
– Locke was the father of the Social Contract
- Consent to be governed may not formally expressed but exists
- By entering a social contract with the state, the individual is seeking to protect their liberty
- Offering consent to the state strengthens the liberty of the individual
- There are rights and duties to both parties. The state may punish those who break the law, however the state must limit itself to ensure the protection of liberties and freedom
– “Government has no other end that the preservation of property”
- If the state exceeded this power, it would violate the contract. Individuals would therefore be within their right to withdraw consent
– American Declaration of Independence 1776
– Authority should rise from below rather than above
Liberal State
- State limits others from encroaching on an individual’s liberty
- Liberals cautious of the state
- State must be limited vita constitutionalism
- must remain a minimal influence on lives. In the economy, the state should be laissez-faire
- Liberals are optimistic about the capacity for human achievement and self-improvement
- As with Mill, the individual should possess the power as an individual is the best judge of interests.
- The liberal state involves some state involvement in areas of economics.
- Locke’s Social Contract also plays a pivotal role in the liberal state, outlining the justification of government upon the consent of the people. This is of key importance to liberal democracy.
- The liberal state’s objectives are: Democracy, Rejection of the ‘traditional’ state, Government by consent, Promotion of natural rights/ individualism, Promotion of tolerance, Meritocracy, Equality of opportunity and Justice.
Constitutional Government
- A limited govt sees the powers of state limited by law, usually in a codified constitution
- Under classical liberalism the state is a nightwatchman. However, under social liberalism, the enabling state based in positive liberty
- First 10 amendments of the constitution place direct limits on the power of the federal government while empowering the individual = 6th Amendment (public trial) + 8th Amendment (bans “cruel and unusual punishments”)
Fragmented government
- Along with a limited government, there should also be a fragmentation or dispersal of state power
- The idea of fragmented government also ties in with liberalism’s belief in the rationality of mankind. If individuals are generally reasonable, and inclined to self-determination, it seems logical to empower as many individuals as possible in carrying out the functions of the state.
– The US exemplifies constitutional and fragmented government found in the 10th Amendment
- Federalism allows for the diffusion of power through local governments
– Suggested 2010 Sheriff’s First Legislation which would make it a crime for any federal agent to operate within a county without permission of the sheriff who are locally elected and accountable
Rule of Law
= where all individuals are treated equally under the law
– AV Dicey – Everyone has the right to free and fair trial, and everyone is under the same justice.
- The state must intervene to uphold this rule of law - police, armies, laws, and judiciary
- Rule of Law must extend to these institutions
– There has been controversy:
– Actions of US soldiers in Afghanistan and Iraq, exposed by Chelsea Manning 2009
– Anti-demonstration clause of the Police and Crime Bill (2021)
– Historical cases of judicial discrimination with Williams v Mississippi (1898) where a black man was tried by an all-white jury, and Dred Scott v Sandford
- The governed give permission to governors to carry out this intervention through the social contact
- It is crucial to protecting natural rights. It is the basis of foundational or formal equality, with the primary purpose of protecting liberty.
Formal equality
- One of the key liberal beliefs is foundational/formal equality = all individuals are born with equal rights
- State must strive for formal equality; all individuals have the same legal and political rights in society, protected prominently under the rule of law
Liberal Democracy
= Political ideology when core liberal values are combined within a form of democratic governance.
- The empowerment of governments in free, fair, and competitive elections
- The dispersion of power through liberal constitutional devices
- The promotion of universal suffrage, thus citizenship
- Accountability and consent to governors
- Politicians who exercise power must be held accountable
– New Labour = Freedom of Information Act 2000
- Believe in the need to protect rights under a codified constitution
– Liberal Dems in the UK had argued for a codified constitution - UK’s uncodified constitution allows ‘elected dictatorship’ = Thatcher, with a majority of 102 in 1979 - targeted trade unions
– Lord Acton’s view “all power corrupts”
- Liberals favour democracy on the grounds that it ensures:
[I] Promotion of Tolerance = Tolerant of other’s opinions and respecting the opposition
[II] Individualism = Control of one’s destiny and outcome by voting
- Individuals use the vote rationally to shape the world around them
– American Political Journalist, Norman Cousins = “in a democracy, the individual enjoys not only the ultimate power but carries the ultimate responsibility”
[III] Participation – Everyone’s involved in the democratic process, develop citizenship, and become educated by understanding parties and politicians
– Mill felt this would aid voters and help develop individualism
[IV] Government by Consent = Democratic elections offer a mandate that allows rule and validates government. This is formed through free and fair elections. Without it, governments fall – French revolution.
[V] Positive view of human nature = can educate yourself to understand the political system, manifestos, and parties
- Assumes an intelligent electorate exists that is capable of rational decisions
[VI] Restricts the concentration of power = It places a limit on the state through regular elections and constitutional devices
- Constitutional devices enhance democracy and advance liberal ideas through the combatting of tyranny
– 1st Amendment = freedom of expression, and assembly
– Checks + balances –> Montesquieu – “power should be a check to power”
Liberal democracy can be seen to benefit humanity – Democracies tend not to fight one another for fear of electoral consequences. “No two countries with McDonald’s franchises have ever gone to war.” – Thomas Friedman.
Liberals also fear excessive democracy on the grounds that it may lead to:
[I] Governments are not always representative = People elects officials to uphold their own views (Not fully representative)
- Vote for officials to legislate, not always considering wider influence – Trumps appointment of three conservative justices to the SC –> Roe v Wade and contraception
[II] Utilitarianism can lead to tyranny of the majority = (49% of the people are no longer represented/have elected officials who are not representative).
- Minorities are often neglected = Native Americans in the US and minorities in Poland
– Mill argued the majority may wish to cement their dominance through suppression or political neglect
– Some states in the US require voter IDs
– South Dakota requires residential addresses to be registered to each ID, which negatively affects Native Americans on reservations that lack addresses - 24,750 miles of land yet 39 postal offices
– Poland = 98% ethnically Polish and 93% Roman Catholic
[III] Locke and Mill only wished to offer the vote to those who owned property
– Locke feared the mob overwhelming the enlightenment elite
– Mill thought similarly,
[IV] The will of the people may not be the ‘best’ political option - increased education with universal suffrage ideal
– “Government of the people, by the people, for the people” – Lincoln
[V] Two parties system - smaller parties no chance
- Views of the minority receive little to no representation – US and UK – Macron’s 2022 speech.
[VI] The constitution – Interpreted by SC
- Can limit the effectiveness of democracy
- Liberals seek to alleviate the effects of democracy by creating constitutional devise.
Economic Liberalism
Market & Market Forces
= A system of commercial exchange between buyers and sellers, controlled by market forces
- Capitalist system represents the fullest expression of individualism, based on the principle of free choice.
– Friedman – “freedom to use the resources we possess”
- A market economy = where supply and demand direct the production of goods and services
- Not controlled by a central authority; instead based on voluntary exchange
- Capitalism is more efficient at allocating the scare resources of society
– Adam Smith in ‘Wealth of Nations’ - ‘invisible hand’ of market forces had a limitless capacity to enrich individuals - would provide greater social benefits
- Wealth acquired by individuals would ‘trickle down’ to the rest of society
Free Market
- Libertarians believe that a laissez-faire system is compatible with freedom because economic agents make decisions on a voluntary basis
– Smith = “we are led by an invisible hand to promote an end which was no part our intention,” and “we expect our dinner, but from their regard to their own interest.”
- Workers are free to offer their labour for wages, thus employers have incentive to treat their workforce fairly
- If they do not, production stagnates with a demoralised workforce.
– Schumpeter’s creative destruction - through demand, the population decides what businesses grow and what dies
- Free market is a positive force globally
– Friedman = free trade generates prosperity through globalisation - state control denies the ability for the individual to benefit
– China faced famines claiming tens of millions during the region of Mao. No country has seen greater benefit from joining the free market
– 2000 = 50% of pop. was below the poverty line, 2019 = 1%
Laissez-Faire – (Classical)
- A capitalist economic system based upon private ownership and market forces within a minimal state
- Argues free-market facilitates the optimum allocation of scare resources
- Prices reach a state of equilibrium based on supply and demand
- Detest any form of government intervention to save dying organisations
– Thatcher’s decision to close 20 mines with a loss of 20,000 jobs would be justified
- Modern liberals have a similar attitude yet redefine the role of the state
- Social liberals facilitate an enabling role for the state to correct market failure
- The allocation of resources derived from the free exchange of economic agents can lead to undesirable consequences – inflation / monopolies.
- Laissez-faire approach became associated with causing the Great Depression - 33% unemployment –> Keynesianism
Keynesian Economics – (Modern)
– Keynes rejected the idea that the market was self-correcting and would reach equilibrium
- State intervention is both necessary and justified to prevent collapse.
- Argued the government should implement a system of stabilisers
- The state could fine tune the economy by manipulating demand
- Increasing government spending and cutting tax improved demand, cutting government spending and increasing tax lowered it.
– Harold Macmillan’s middle way - advocated - ‘planned capitalism’, which combing Atlee’s nationalisation with private business growth
– FDR CCC (1933) - employ 3m men on environmental projects – ‘digging holes to fill them back up again’ (Keynes)
Economic Management and Demand Management
- Economic: Government should influence the level of aggregate demand (total demand).
- Demand: Governments should regulate demand through fiscal policy
– British Economist Robin Matthews argued = expansion of manufacturing sector during WW2 ran into diminishing returns, so that Britain entered the post-war period with a larger manufacturing sector than could be sustained in the long run. To combat this, the Attlee’s nationalisation was needed
Liberal State
Self-Reliance
– Samuel Smiles = ‘Self-Help’ (1859) - it’s difficult for individuals to become self-reliant as the individual had become the “faceless employee in a bulging factoring system”
- He emphasised that one shouldn’t look to the state as “human beings would remain stunted”
- Individuals should struggle and through being challenged, they will flourish
- If liberty is to be protected through minimal state, the solution to poverty lies with the individual
- Not the role of the state to provide welfare, and this would undermine the route out of poverty
– Smiles: “Heaven helps those who help themselves.”
– Smith : “The real tragedy of the poor is the poverty of their aspirations”
Social Darwinism – Circumstance is dependant on Hard Work and Talent
– Herbert Spencer acknowledged the importance of self-help yet argued that Smiles did not fully understand society
- Not all individuals could face the challenges brought about by industrialisation
- He argued that at present society was: ‘Feeble, Feckless and Failing’
- Such feeble individuals gives reason for more state intervention - social Darwinism needed
- Extreme laissez-faire capitalism and inequality on the grounds that natural selection ensured ‘survival of the fittest’
- Destroying those in society unable to “enjoy the benefits of individualism”
- The goal was to create a state of self-reliant individuals.
Equality of Opportunity
- Liberals have endorsed measures to break down social barriers that hold back opportunities
- More social liberals favour state intervention to enhance equal opportunities = Equality Act (1928) and The Education Act (1944) which made secondary education free in the UK
- Liberals tend to oppose measures that confiscate wealth from those who have acquired it fairly
- People’s abilities differs greatly, thus while the start is equal, the outcome should be fair
- To the state, there is a choice to be made between equality of outcome or preservation of liberty
Meritocracy
- Liberal state is built upon meritocracy = individuals are defined by ability rather than circumstance of birth
- Contrary to feudalism which prevented social mobility
– Ayn Rand = “I know no worse injustice than the giving of the undeserved”
The Enabling Welfare State
- The state needs to hold some responsibility for welfare needs - Beveridge
- It’s consistent with maximisation of freedom and equal opportunity
- Progressive > punitive taxation
- Classical argue it is a slippery slope to dependence and socialism
