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8. 7. 6. 5. 4. 3. PICTURE START. Responses to Classical Liberalism Social 30-2. Why did ideologies develop in opposition to classical liberalism?. URBANIZATION.
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PICTURE START
Why did ideologies develop in opposition to classical liberalism?
URBANIZATION • the industrial revolution begins a massive shift in population from rural to urban areas with people moving to cities to look for work when they are no longer needed in rural areas for agriculture • rapid urbanization creates many social problems in early industrial cities – no sanitation, lack of housing, over-crowding, crime, no social services like police
ENERGY SOURCES • man and animal power • water power (mills) • steam engine – Savery, Newcomen, Watt • eventually • internal combustion engine • electric motor
Problems • man and animal power • water power (mills) • steam engine – Savery, Newcomen, Watt • What potential problems could be caused for the average worker as a result of the increase in technology?
Why did ideologies develop in opposition to classical liberalism? • Laissez-faire capitalism was primarily concerned with industrial efficiency and the accumulation of wealth • These goals were considered more important than equality, workers were viewed as one component of production, not necessarily on par with the wealthy elite
There were many protests against the effects of classical liberalism. Not all developed into complete ideologies but nonetheless opposed classical liberalism in some way.
Chartists • Chartism was a working-class movement in Britain that focused on political and social reform. • Named after the People’s Charter of 1838 which had 6 goals:
Universal suffrage for all men over 21 • Equal-sized electoral districts • Voting by secret ballot • And end to the need for property qualifications for Parliament • Pay for members of Parliament • Annual elections
Chartism looked to counter the inequality created by the Industrial Revolution and classical liberalism through the electoral process. • Their actions, like those of the Luddites, led to violence
Socialist Ideologies • Socialism believes that resources should be controlled by the public for the benefit of everyone in society and not by private interests for the benefit of private owners and investors • Characterized by co-operation and a high degree of state involvement • Socialists rejected the lack of equality and humanitarianism in classical liberalism • Unlike Luddism and Chartism, forms of socialism became effective ideologies
Utopian Socialists Robert Owens and New Harmony
Marxism • The term ‘Marxism’ was coined by a group of French socialists but Karl Marx (1818-1883) proclaimed that he was not a Marxist • Marxism is a radical form of socialism often called scientific socialism or communism
According to Marx the only way to overthrow capitalism was a class struggle, a workers’ revolution, between the proletariat (workers) and the bourgeoisie (owners).
This type of socialism favours the abolition of private property and the centralization of the means of production in the hands of the state • This is a command economy
Classical Conservatism • Classical conservatism was the reaction to classical liberalism • Reactionary, also known as conservative or the Right (referring to the political spectrum), refers to an ideology that supports a return to a previous state of affairs. • Just as the Luddites reacted to industrialization by breaking machines, others reacted to classical liberalism • Edmund Burke believed change should take into account the past and the future, not just the present, therefore change could not come from the whims of the present generation
Edmund Burke • He was a reactionary, he reacted to the political issues of the day • He believed: • Society should be a hierarchy with those best suited to lead at the top because not everyone has equal abilities. Uninformed people should not have a say in government. • Government should be chosen by a select few with special rights and responsibilities • Leaders should be humanitarian-care for others • Society must be stable and that can only be achieved through law, order, customs, and traditions
The Liberal Response • Classical liberals gradually came to see the merits of their opponents’ views and modified some of the beliefs and values • Laissez-faire capitalism needed to consider workers’ rights and develop a social conscience • Factory owners who wanted to avoid the growing demand for labour unions gave workers some special benefits. This is known as welfare capitalism. This also refers to government programs that would provide social safety nets for workers
How do workers’ rights today compare to those in the 19th, or even early 20th century? Labour Rights
The Gilded Age • “What is the chief end of man? – to get rich. In what way? – dishonestly if we can; honestly if we must” • Mark Twain, 1871 The Gilded Age refers to substantial growth in population in the U.S. and extravagant displays of wealth and the late 19th century.
The Robber Barons • Men like John D. Rockfeller and Andrew Carnegie made huge fortunes and exemplified the “American Dream”.
Trusts and Trust Busting • These men created their wealth, in part, through the creation of trusts. • Trusts were ways of reducing competition and fixing prices. They were essentially monopolies. • In the 1880s the American people began to demand effective regulation of the trusts. • In 1890 Congress passed the Sherman Anti-Trust Act • In Canada it is called the Combines Investigation Act of 1910/1977.
Ineffectiveness • In U.S. v E.C. Knight and Company, the U.S. Supreme Court in 1895 held that the mere control of 98% of the sugar refining of the country did not in itself constitute an act in restraint of trade. • Congress failed to amend the Act and the executive (Presidents) did little to enforce it.
Social Darwinism • The power held by rich businessmen was justified by Social Darwinism which at this time was based on several beliefs: • The best form of government was that which governed the least. • The acquisition of wealth was a mark of divine favour, and that the rich therefore had a moral responsibility both to get richer and to direct the affairs of society. • ‘Survival of the fittest ’ as applied to human society. • In short, it was believed that America was a business civilization and should be kept that way. • ‘The chief business of the American people is business ’ • President Calvin Coolidge (1872 - 1933), Speech in Washington, Jan. 17, 1925
Extremes in Wealth • The laissez-faire approach to the American economy did lead to great wealth and power for some. However, it also lead to great poverty for many. • In 1890, 11 of the 12 million people living in the U.S. earned less than $1200/yr. Of that group, the average annual income was $380 (far below the poverty line).
Progressivism • This extreme disparity in wealth soon came to light and began a movement toward change in the social, political and economic structure of U.S. society. That is, it led to a change in the implementation of classical liberal ideology. This movement toward change was called Progressivism.
President Theodore Roosevelt • He wanted capital and labour (profits and workers’ rights) to be treated fairly • He called this the square deal • He went on to found a new political party-The National Progressive Party-whose platform contained this new kind of liberalism, sometimes called progressivism
Progressivism • Goals: • Securing equal suffrage to men and women alike • Conservation of human resources (workers’ rights, prohibit child labour, etc.) • Implement a single national health service • Most of this early legislation dealt with workers’ rights. It failed to address issues such as child poverty, education, housing standards, etc. • Also, when WW1 broke out the government needed the support of factory owners for the war effort.
The Results of Progressivism • This term referred to a classical liberal economic system combined with a government that used legislation to give workers protections such as limited working hours and a minimum wage, and a safety net with features like pensions and medical insurance. • The muckrakers helped create a demand for changes to the classical liberal system of the U.S. • Lead by President Theodore Roosevelt and his “Square Deal”, the U.S. government took action to change the social, political and economic structure of the country.
The Results of Progressivism • Changes through Legislation: • 1890 – The Sherman Antitrust Act -Outlaws monopolies and practices that result in the restriction of trade, such as price fixing. • 1906 – The Hepburn Act -Required railroads to obtain permission from the Interstate Commerce Commission before raising rates. 1906 • Meat Inspection Act • Required the federal inspection of meat processing to ensure sanitary conditions. Pure Food and Drug Act -Outlawed interstate transportation of impure or diluted foods and the deliberate mislabeling of foods and drugs. 1913 Department of Labour -Cabinet department was created to protect and promote the welfare and employment of working people. 16th Amendment Gave Congress the power to levy an income tax 17th Amendment Direct election of Senators
As a Result there was a shift towards the Welfare State • The movement from welfare capitalism to a welfare state was spurred by the Great Depression • A welfare state is a state in which the economy is capitalist, but the government uses policies that directly or indirectly modify the market forces in order to ensure economic stability. • The Great Depression became a catalyst for change, and what began to emerge was modern liberalism as we know it today
Modern Liberalism Classical Liberalism Focuses on greater individual freedom and economic freedom Freedom comes from equality of opportunity What does this mean?
Welfare State Economic Views Classical Liberalism The government should not interfere in the economy. If everyone knows that good times are followed by bad times, then it is everyone’s responsibility to save for the bad times. The government should balance out the highs and lows of the economic cycle by raising/lowering taxes, government spending, and interest rates. Keynes supported this.
