Liberals' view of the economy

Question 1

general liberal ideas of economy:

Answer 1

-economy should support individual liberty
-supports capitalism in its varying forms
-private property ownership is a natural right

Question 2

classical liberals’ view on the economy:

Answer 2

-support free-trade and a free market
-minimal state role in economy
-state should function as a ‘nightwatchman’ not a policeman

Question 3

modern liberals’ view on the economy:

Answer 3

-favour an enabling state which needs progressive taxation to fund welfare
-focus on positive freedoms
-tend to favour a Keynesian economy e.g. some state intervention, mix of private enterprise and nationalised industries