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

3. CLASSICAL to MODERN LIBERALISM

5. 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?

6. 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

8. 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)

9. 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

10. 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, 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

11. 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, 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:

12. 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, 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

13. John Stuart Mill Famous book ‘On Liberty’
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.

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

16. 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

17. 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

18. 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

19. 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

20. 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)

21. 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

22. 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

23. 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

24. 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”

25. 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

26. 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

28. 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

29. 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

30. 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

31. Reaganomics Thatcherism Ronald Reagan: 1981 - 1989
Margaret Thatcher:
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:
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

32. 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

33. The evolution of modern liberalism

34. 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