History of Classical Liberalism

History of Classical Liberalism Chapter 3 Part 1 Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Principles of Classical Liberalism • Rule of Law • Individual Rights and Freedoms • Private Property • Economic Freedom • Self-interest • Competition Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Principles continued… • The importance of human rationality • Free market economy that operates with limited government intervention that relies on the choices that rational individuals make in their own self-interest • Page 105-timeline Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Principles continued … • The Enlightenment or the Age of Reason brought all thinking together in one focus in the 17th and 18th centuries • Starting in the 14th century and continuing on through the 18th century a group called the Humanists developed • They believed in the importance of arts and literature alongside of faith Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Principles continued • They based their views of life more on reason than on religion • They sought meaning and purpose in love, beauty, art and the development of self • Along with this came a questioning of the authority, teachings, and practices of the Roman Catholic Church • Out of this came the Protestant Reformation Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Principles continued … • Religious wars were rife and contests for imperial expansion dominated the social, political, and economic affairs of Europe • As well, by the 17th century, the breakdown of the feudal economic order was under way • Cities became more important, international trade expanded and a wealthy middle-class developed Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Principles continued • Peasants went to the city seeking work leaving the aristocracy with fewer people to work their land • As society was changing it was argued that the role of government was one of maintaining security and the rule of law • In reality this new concept of classical liberalism applied mainly to the newly empowered entrepreneurial class Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Principles continued • Thinkers related to these thoughts are Montesquieu, Smith and Mill • Review of Hobbes and Locke on pages 108-109 • Divine Right of Kings: monarchs came to believe they were no longer bound by any earthly authority, since their status was determined by God Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Charles de Secondat, baron de Montesquieu • Montesquieu believed in the worth of the individual, the equality of individuals and the accountability of government • He also believed in the separation of powers-government should be split into 3 branches-executive-legislative and judicial • All branches would be separate but dependent on one another-one would not be stronger than the others Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Montesquieu continued … • To make this system work you needed people involved in the system or in other words-democracy • Each citizen should participate in and be aware of the laws and the workings of government • His ideas are reflected in the U.S. Constitution Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

John Stuart Mill • He advocated the protection of individual freedom and the promotion of individual decision making as the core of societal institutions • The only limitations that should be placed on the individual should be those that protect the liberties of others • He also advocated free speech as a necessary condition for intellectual and social progress Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Laissez-Faire Economics • The coming of the Industrial Revolution changed Britain’s traditional economy from one of subsistence farming to factory work • Britain’s development of a sea power laid the groundwork for this as did its early movement towards parliamentary government which consisted mainly of wealthy landowners and merchants Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Laissez-Faire continued… • This early parliament passed the Enclosure Acts which helped the merchants and landowners by forcing thousands of low-income farmers off their farms and into the cities • This resulted in a large pool of cheap labour • With the Enlightenment new ideas about man joined these economic ideas Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Laissez-Faire continued … • New ideas bout human potential and individual worth • A government friendly to business and innovation • A huge amount of investment capital and cheap labour, and a large number of innovators and inventors who were encouraged by the potential of reward Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Laissez-Faire continued … • This resulted in the development of the factory system, the mass production and consumption of consumer goods, the expansion of capitalism and free enterprise, and the shaping of the modern industrialized world • It also produced extremes of wealth and poverty, palatial estates and horrible slums, excess and starvation, child labour, worker abuse and the degradation of the environment Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Laissez-Faire continued … • Laissez-Faire is a French term that means to leave alone • It referred to a reduction of government involvement in the economy • It came out of the theories of the physiocrats-a group of French Enlightenment philosophers who critiqued the economics of Mercantilism • The pursuit of self-interest in economic affairs would benefit everyone Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Adam Smith • A Scottish political economist • He spent time in France with the physiocrats • He was against the prevailing mercantilist system and believed that if people worked first and foremost for themselves, everyone-including the government-would be better off • He published the Wealth of Nations where he described a system where individuals work for their own self-interest in a free-market system Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Adam Smith continued … • He insisted that individual self-interest in a free market would lead to a stronger economy and would therefore benefit most people in society-quote pg. 112-invisible hand • By having every individual look after his or her own best interests, he or she unwittingly ends up helping everyone else, by providing jobs and cheaper products Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

Adam Smith continued … • For Smith the government’s role should be limited to maintaining the rule of law, to ensuring contracts were followed and to providing some public works-education and roads • This is the foundation of the capitalist system Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

History of Classical Liberalism