From Classical Liberalism to Modern Liberalism OR There and Back Again…

CLASSICAL to MODERN LIBERALISM

I-phone 1, 2, 3…4.1 1.0 Was great…but they found flaws Evolution simile I-phone 1, 2, 3…4.1 1.0 Was great…but they found flaws 2.0: was better…but they found flaws 3.0: was better…but some thought 2 was better… 4.0: what is the next evolution?

ABSOLUTISM Elizabeth I Louis XIV Friedrich Wilhelm I Economic power resided in the hands of a few elites Economic system = Mercantilism (1500s to 1700s) Monarchs granted monopolies and placed limitations on trade and consumption Absolute monarchs were the pinnacle of power Monarchs had nearly unlimited political power Social structure based on “Old Regime” tradition Elizabeth I Louis XIV Friedrich Wilhelm I

2.1 appreciate Aboriginal contributions to the development of ideologies 2.4 explore Aboriginal contributions to the development of liberalism 2.5 examine the relationship between the principles of liberalism and the origins of classical liberal thought (John Locke, Montesquieu, Adam Smith, John Stuart Mill)

The Enlightenment Age of Reason Late 1600s to late 1700s belief that social & natural world could be understood through exercise of reason philosophers (thinkers) of this time argued that society in its present state was not result of divine will, rather, it benefited those in power Locke, Montesquieu & Rousseau among the most influential Society could be changed and progress in ways that would benefit the majority. More and more people started questioning long accepted beliefs and traditions

John Locke Human nature essentially good People born free with inalienable natural rights and freedoms People enter into a ‘Social Contract’ with whoever holds power – ‘consent of the governed’ give up freedom in exchange for protection Believed people were born with a tabula rasa (blank slate) and human experience made them who they became John Locke was born at Wrington, a village in Somerset in England, on August 29, 1632. He was the son of a country solicitor and small landowner Social Contract - government thus holds power with permission of people government only legitimate as long as it governs in best interest of people if it fails to do this or abuses peoples’ rights citizens are justified in rebellion also argued that people were born with a “tabula rasa” - blank slate meaning our personality and values are not predetermined by heredity but learned through experience with the world Thus changes in society could result in changes in individuals argued for freedom (ability to do whatever does not take rights from others) not license (doing whatever regardless of the rights of others he was widely read especially in France where he influenced the French Philosophes

Montesquieu Wrote “Spirit of the Laws” believed in a separation of powers within the governing structure executive: power to carry out law legislative: power to make law judicial: power to interpret the law ideas were used in American constitution with its system of separation of powers and checks and balances within governing structures His family was of noble rank Born 18 January, 1689, died at Paris, 10 February, 1755. studied types of governments in different countries -concluded geography had a great influence on type of government in England power was divided between King, Parliament, and courts in France king was still absolute saw the possibility for “separation of powers” between various groups -didn’t actually advocate democracy responsibility of govt should be divided into 3 functions:

Adam Smith book ‘Wealth of Nations’ business must be free from government regulation – ‘laissez faire’(economic freedom) self-interest and competition amongst small businesses would drive the economy – ‘invisible hand’- to the benefit of all often viewed as the father of capitalism Adam Smith was born in Kirkcaldy, Fife, Scotland. The exact date of his birth is unknown, however, he was baptized on June 5, 1723. Smith was the Scottish political economist and philosopher, who became famous for his influential book "The Wealth of Nations" written in 1776. regulation was unnecessary as individuals seeking their own self interest (profit) would produce the goods needed by society

John Stuart Mill Famous book ‘On Liberty’ 1806-1873 Famous book ‘On Liberty’ John Stuart Mills view on liberty (rights and freedoms) is that the individual ought be free to do as he wishes unless he harms others the ‘harm principle’. Individuals are rational enough to make decisions about their good being and choose any religion they want to. Government should interfere when it is for the protection of society.

RELATED ISSUE 2 2.4 explore Aboriginal contributions to the development of liberalism  

What effects did Classical Liberalism have on politics? Individuals challenged the authority of absolute monarchs through a series of revolutions The people demanded individual freedoms: Constitutions Limitations on government power Uniform and rational laws Democratic rights These changes evolved slowly, unevenly, and at different rates in different parts of the western world American Revolution 1776 French Revolution(s) 1789

What effects did Classical Liberalism have on economics? Influence of Laissez-faire economics AKA – Free Market Capitalism The government promoted economic freedom, self- interest, and competition Wealthy people had an incentive to invest in new businesses and technology Adam Smith

Industrial Revolution 1760 The transformation from a cottage based to a factory based economy Started in England in 1760s “Full steam” across Europe & USA by 1850s First industry to go through the revolution: clothing/textiles

The Industrial Revolution Pros Cons Cheap consumer goods & food New jobs for low skill workers (proletariat) Massive profit for factory owners (bourgeoisie) Exponential technological innovation Eventually Publicly funded education Social mobility for some Minimal employment standards Long hours Low pay Unsafe working conditions Child labour No environmental standards

Urban workers peasants How did the Industrial Revolution affect the social structure of society? clergy nobility peasants Wealthy elites Middle classes Urban workers Eventually new middle classes emerged Unions & publicly funded education played a critical role Social mobility is the responsibility of the individual through: Hard work Innovation Education/self-improvement Everyone has the same “opportunity” for social mobility (in theory)

Reactionary responses to Classical Liberalism Reactionary = Extreme Right Wing Rejected (classical) Liberalism Luddites Machine Breakers Artisans who wanted to undo the changes of the Industrial Revolution Classical Conservatism Key example: hierarchical society = stability Valued tradition “We owe and implicit reverence to all the institutions of our ancestors” People ≠ equal (elitist view) Uneducated masses = irrational not worthy of choosing leadership Edmund Burke

Socialist responses to Classical Liberalism Socialism is an economic ideology Socialists respond to perceived ______________ of workers in a free market capitalist economy Generally socialists agree that Unrestricted self-interest leads to exploitation Collective wellbeing is more important than individual prosperity Government involvement is required to ensure equality exploitation

Socialist responses to Classical Liberalism Robert Owen There is a wide range of socialist ideologies Utopian socialism Robert Owen Democratic socialism – Sweden CCF - NDP Radical socialism (Marxism) Karl Marx Believed that violent revolution was both necessary and beneficial Revolution would occur when the proletariat (workers) achieved class consciousness (awareness) of their exploited state After a period of dictatorship the state would “wither away” Sweden Marx

COMMUNISM vs. SOCIALISM Applies to economic & political systems Directly opposes the concept of capitalism advocates transforming classical liberal society violently (revolution) Applies to economic systems Believe socialism can exist within a capitalist society Believes in transforming classical liberal society peacefully (through political means) “All communists are socialists but not all socialists are communists”

Attempts to reform Classical Liberalism Welfare Capitalism in America Benefits for workers funded by business owners Why would business owners do this? Prevents worker support for _____________________ Prevents the need for increased government involvement labour unions

What key event was the catalyst for the transition from welfare capitalism to the welfare state in NA? A welfare state Still has a free market economy (with restrictions) The government takes a much more active role to ensure economic stability Economist John Maynard Keynes argued that government involvement is necessary during times of economic depression His theory is AKA demand side economics (fixed ) Keynes’ theory is foundational for the economic policy of _______________ liberalism modern

What social and political values are espoused by modern liberal ideology? Modern liberalism includes and builds upon the political beliefs and social rights of classical liberalism These rights are expanded under modern liberalism Modern liberals support government involvement to ensure equality of outcome in the application of these rights

Modern liberals want government involvement to ensure equality with a number of different issues… Democratic rights Universal suffrage – all adult citizens have the right to vote Workers’ rights Unions are legal Collective bargaining protected by law Women’s Rights Feminism – the belief that men and women are equal Protection of human rights Civil Rights activists (racial equality) LGTBQ rights Most modern liberals support affirmative action

Enter the NEO-CONS… Stagnant economies and building government debt caused many to question Keynes ideas Friedrich Haye k Milton Friedman “The Chicago School” Big government” is the enemy. Monetarism: Use INTEREST RATES to manipulate the money flow

Reaganomics Thatcherism Ronald Reagan: 1981 - 1989 Margaret Thatcher: 1979 - 1990 Broke up Britain’s welfare state Privatized low income housing Privatized utility companies Broke up labour unions Striking workers were fired Use police force to break up picket lines REFUSED to privatize public healthcare… Ronald Reagan: 1981 - 1989 He brought down labour unions Altered the tax system: highest income earners: dropped from 70% to 50% (1981) Dropped again: from 50% to 28% (1986) but… lowest bracket: from 11% to 15% NEO CONS also believe in using military force to protect national interests

What social and political values are espoused by modern conservative ideology? Modern conservatism reflects a desire to move back toward (but not as extreme as) classical liberalism Generally want to see rights stay where they are at the time…(ie would not REMOVE rights but wouldn’t extend them to more groups either…) Modern conservatives want to reduce government involvement to ensure equality of opportunity

The evolution of modern liberalism

Liberalism A COLLECTION of ideologies that embrace the principles of individualism (though to different degrees) Rule of law Individual rights and freedoms Private property Economic freedom Self-interest Competition