Neo-Liberalism

Question 1

Human Nature

Answer 1

• New ethos of enterprising individualism - a return to classical liberal ideas about individualism.
• Emphasises on the innate abilities (negative liberty) rather than the potential as advocated by modern liberals.

Question 2

Hayek on HN

Answer 2

• Re-emphasises the idea of negative freedom and minimal state.
• Supported ideas regarding developmental individualism.

Question 3

State

Answer 3

• Believes in a minimal state, similar to CL, and replacing a dependency culture.
• Criticises modern liberalism as betraying individualism because they argued the state was too large like socialism.

Question 4

Hayek on State

Answer 4

• Argued that too much state intervention would cause a dependency culture and erode individualism
• Criticised the Beveridge Report which talked about supporting people from the ‘cradle to the grave’, fostering a form of ‘state paternalism’ or a ‘dependency culture’ legitimising an endless extension of state restraint upon individual initiative.
• Passionate in constitutional reforms that checked executive power.

Question 5

Economy

Answer 5

• Aims to reapply the ideas of Adam Smith and Thomas Jefferson to modern societies and modernised economies.
• Questioned the efficiency of Keynesian economics and welfare spending - re-advertised the merits of negative freedom and minmal state.
• Demanded reduction in public spending (privatising services and less state economic regulation).

Question 6

Hayek on Economy

Answer 6

• Defended free market capitalism and promoted the idea that private investment rather than government spending would promote sustainable growth.
• Welfarism and nationalisation constrains economies in a changing globalised world.

Question 7

Society

Answer 7

• Society is where individuals have been stymied by ‘positive liberty’ - stops it by radical reduction of state intervention.
• Repeats belief - ‘no such thing’ as a society - rather a collection of atomised individuals pursuing interests.

Question 8

Hayek on Society

Answer 8

• Didn’t believe in dependency culture such as benefits and pensions, calling for the politicians to ‘roll back the frontiers of the state’ and ‘set the people free’.
• Supported the ideas previously stated of developmental individualism.