Liberalism Flashcards
When did John Locke live?
1632-1704
England
What were his 2 treatises?
- Argued for separation of church and state
-
Social contract
- government should take care of their citizens
- citizens do not have to obey or they can chage leaders by election
What influence did Locke have?
He influenced the French revolution + the American founding fathers
Government role should be limited to protection of
- life
- liberty
- prosperity
Government should be overthrown if it oversteps
What is Locke’s idea of tabula rasa
People are “tabula rasa” = blank slate that are shaped by experience
What was Adam Smith’s contribution?
Wealth of Nations - the government should not interfere with the free market (buying + selling)
Believed in low tariffs and free trade
Laissez-Faire - Let things work themselves out
He was the father of “capitalism”
What was Simth’s thoughts behind Laissez Faire
There is little need for big government. Government should not interfere with free market
Worker makes goods for the owner, owner sells to consumer
More sales = mores demand = higher wages
It will all even out in the end
Decribe the export of Liberal ideas to America?
- The idea of “little government” became popular in American colonies in 18th century
- Founding fathers said government purpose was
- Ensure that individuasl were never inhibited in their “ life, liverty and pursuit of happiness”
- Governemnt gets involved only to maintain this opportunity
- Allow individual determinism
Describe liberlism in action
Liberalism 2.0
Government has a role in ecomnomy to stop extremes (people makingtoo much money or losing too much money)
Who was Maynard Keynes?
1883-1946
British economist
Had new ideas in response to Great Derpession (1929-1939)
Rejected the idea of a truly “free market”; know it could casue economic crisis
He feared there would be another Wold War if things didnt change
What are Keynsian Economics?
Gov’t has a role in the ecomony to mitigate extremes (great profit or great losses)
- Gov’t saves it revenues (taxes) when the economy is strong
- Gov’t uses this money in poor economic times
- e.g. spend on infrastucture such as roads and bridges, to give people jobs
Why did the Financial Crisis of 2007-8 happen?
Financial Crisis 2007-8
- Caused by overextended mortgages
- it worked as long as mortgage rates were low but when they went high, many had to default on their mortgages. The bubble burst. Trading in New York stock market dropped by 89%
Describe Keynesian policy in response to the Financial Crisis of 2007-8?
Keynesian policy in response:
- Obama gave $80 billion to the auto industry to stimulate economy
- $700 billion to the financial instituations (banks)
- Signed by George Bush and implemented by Obama
What is the “Social contract”?
An agreement between the rulers and the ruled
Defining the rights and duties of each
In doing so, they form a “society”
What is Hobbe’s Social Contract?
Every person gives up their power to the absolute monarch
The monarch has divine right to rule
