Liberalism

Question 1

What do classical Liberals believe about the economy?

Answer 1

• They believe in a free-market capitalist economy
• The believe in little to no state intervention in the economy
• They emphasise that individuals think best for theme selves, so the economy should support individuals
• They believe in minimal state welfare, as they believe that a free market economy is the best way out of poverty
• They believe that a completely free market creates full equality of opportunity

Question 2

What do modern liberals believe about the economy?

Answer 2

• They too support a free market capitalist economy
• By The 20th century, modern liberals were more aware of the failings of the free market economy
• They support the idea of state intervention to promote sustainable growth in the economy e.g. Brown’s renationalising of RBS and Obama’s stimulus package in the wake of the finial crisis
• They support a strong welfare state to limit large scale poverty and inequality in society
• John Rawles’ veil of ignorance people should be happy to imagine being born into any situation in society
• Welfare is also needed to give true equality of opportunity