Friday, March 13, 2015

Session 14: Classical Liberalism vs Modern Liberalism

Liberalism, in its broadest sense, can be defined as a political viewpoint associated with free market, individualism and protection of rights. In the French revolution of 1789, liberalism was promoted under the slogan of "Liberty, Equality and Fraternity". However, even within this ideology, there exist several different forms of liberalism.
Classical liberal states can be characterised by minimal government intervention and a "let [them] do" or Laissez-faire economic system. This implies the application of Adam Smith's economic work. Adam Smith believed in the "invisible hand" that exists in an economy and argued that markets are most efficient when each firm has complete control over its actions, thus implying minimal government policies that directly effect markets. Classical liberalism also believes in the "night-watchmen" function of the state arguing that the state itself should not intervene unless it is necessary to do so. Classical Liberalism in its extreme form can be called Social Darwinism, as advanced by Charles Darwin. He believed that in a society, the weak should get weaker and the strong should get stronger, and the state should play no role in limiting the power of the strong or giving power to the weak. He focused on the simple idea of "survival of the fittest"
Modern liberalism on the other hand, is significantly different from its classical version in certain aspects. Fundamentally, modern liberals believe that government intervention is necessary in a state. In the economic system this is true because certain key industries often need protection, that can only be provided by the government, against foreign competition for example. In the legal sphere, it is needed to ensure that people do not get exploited by the elite and that every individual gets equal opportunity.
In today's world, Classical liberalism and Social Darwinism has more or less disappeared with more and more countries following the modern liberal form of government.



No comments: