1. Exploring the roots of Liberalism
Chapter 4

2. To what extent should we embrace an ideology?
Key Issue
To what extent should we embrace an ideology?

3. Is resistance to liberalism justified?
Related Issue
Is resistance to liberalism justified?

4. Chapter Isuue
To what extent have various ideas and events shaped liberalism over time?

5. Question for Inquiry #1
In what ways have the aboriginal people contributed to the early development of Liberalism?

6. What are the Origins of liberal thought in Western societies?
Question for Inquiry #2
What are the Origins of liberal thought in Western societies?

7. Key Skill
Understanding cause and effect relationships and the historical significance of changes and events

8. Key Terms and Concepts Adam Smith Capitalism Class System
Classical Liberalism
Distribution of Wealth
Haudenosaunee Confederacy
John Stuart Mill
Laissez-Faire Capitalism
Liberal Democracy
Liberalism
Limited Government
Mercantilism
Modern Liberalism
Monopoly
Rule of Law
Supply and Demand

9. History of Liberal Societies (Pg 95)
Read the first to paragraphs on page 95 on your own

10. History of Liberal Societies (Pg 95)
Liberalism has not had an easy road to get where it is today
There have been revolutions, wars, protests and all sorts of civil disorder to get to where we are today
This chapter will deal with those events and ideas

11. Aboriginal People and the early development of liberalism (pg 96)
Liberalism has shifted and changed over time
However, certain aspects always seem to be consistent with liberalism
One example of an idea that is almost always associated with liberalism is individual rights and freedoms

12. The Haudenosaunee Confederacy (pg 97)
Sometime referred to as the Iroquois Confederacy
Formed between
Was a participatory democracy that involved 5 (later on 6) Haudenosaunee nations
This was one of the first and longest lasting participatory democracy in the world

13. The Haudenosaunee Confederacy (pg 97)
Each nation had an internal council and chief to deal with issues that affected that nation.
The Grand Council had equal representation from each nation
The Grand council would convene on matters that affected all of the nations in the confederacy

14. The Haudenosaunee Confederacy (pg 97)
The goal of the confederacy was to live in harmony with all other nations involved
This was a stark contrast to what was going on in Europe at this time where only nobles and the church had any power and there was no idea of democracy

15. The Great Law of Peace (Pg 98)
The constitution of the Haudenosaunee Confederacy
It was passed down orally from generation to generation
Outline the path to harmony between the nations, outlined the division of powers between levels of governments
Also outlined rights and freedoms, even equality rights for women
Free speech
Freedom of religion

16. The Influence of the Haudenosaunee (pg 98)
Some believe that this confederacy was a major influence on the Declaration of Independence in the United States
This would make it a major influence on the Canadian Constitution as well.
Other historians believe that the Europeans had more influence on the constitution

17. Summary of the Aboriginal Influence on Early liberalism (pg 100)
The Haudenosaunee people had individual rights and freedoms centuries before the western world
It is believe by many that The Haudenosaunee Confederacy was a major influence on American and Canadian Liberalism

18. Summary of the Aboriginal Influence on Early liberalism (pg 100)
The Great Law of Peace are based on collective values but also have a number of individualist and liberal ideas
These liberal ideas include, elected leaders, leadership based on merit, and rules based on a shared constitution

19. Question for Inquiry #1
In what ways have Aboriginal people contributed to the early development of liberalism?

20. Origins of western democratic liberalism (pg 101)
In the 1700 and 1800 the royal families had absolute power and wealth.
Common people did not have the same freedoms we enjoy today
Man were not allowed to own land, travel, not allowed to attend school.

21. Western European origins of liberalism (pg 101)
Many ideas of liberalism practiced in the west today came from Europe
Many countries in Europe in the 700 and 1800 had an absolute monarchy
Even if the majority of citizens wanted a change in society the royalty would not be compelled to make changes.

22. Western European origins of liberalism (pg 102)
By the mid 1700 people started to challenge the ideas of absolutism and start discussing individual rights
Jean-Jacques Rousseau was on of those philosophers that supported civil rights, freedoms for individuals

23. Western European origins of liberalism (pg 101)
People who believed in liberalism at this time believed that
Individual freedoms and rights should be protected
Nobody should be above the law
What is good for individuals in the community can also be good for the community as a whole
Government intervention should be limited to allow the most freedom of choice possible for the individual
Individuals should be allowed to market and sell products with little government interference (free markets)

24. Liberal Ideas of Economic systems (pg 102)
The industrial revolution changed every thing for people in the 1700 and 1800’s
Questions about how the economy should be run started to be discussed.
At this time mercantilism was the major economic model used by most countries.

25. Liberal Ideas of Economic systems (pg 102)
Under mercantilism the workers would produce goods. These goods would be sold and the royalty would keep the profit.
This created a class system.
Upper class – Wealth landowners
Middle class – Business owners, exporters, professionals
Lower class – labourers, factory workers etc.

26. Adam Smith and the wealth of nations (pg 103)
The Wealth of Nations was a booked that challenged the mercantilism system
One of Smith’s largest criticism was that the old system did not distribute wealth evenly throughout society
A more equal distribution of wealth could only come of people were given the choice of what to produce, what to buy and what cost to sell at

27. Adam Smith and the wealth of nations (pg 103)
Another criticism was that the nobility would play favourites and allow certain business people to extract resources for sale. This created monopolies in the economy
Monopolies are when one, or very few companies control all of the flow of a certain good in the economy.
A monopoly would result in no competition and poor products
Smith believed that competition was essential in an economy because it would encourage us to become better and smarter.

28. Adam Smith and the wealth of nations (pg 103)
Smith believed that if there were many companies making products they would compete with each other to get the people to buy their product. Good merchants would make lots of money and poor one would go out of business.

29. Adam Smith and the wealth of nations (pg 103)
Smith believe that companies would be forced to make products that people wanted and people would be moved to buy better products. He called this movement the invisible hand and that this invisible hand would improve the prosperity of the nation and the well being of the nation as a whole.

30. Adam Smith and the wealth of nations (pg 104)
With this system people would be motivated to improve.
There motivation would come from self interest, greed and competition
This would make society as a whole much better
He believed that the invisible hand had to move freely for this to happen to its full extent

31. Adam Smith and the wealth of nations (pg 104)
Smith would have been against ideas such as
Trade embargos
Tariffs
Sales taxes
Government run monopolies
Misuse of public funds

32. Adam Smith and the wealth of nations (pg 104)
It is important to note that Smith did see a use for a limited role for the government
To protect the security of individuals
Protect private property
Enforce laws that protected individual rights
Maintaining public works

33. Adam Smith and the wealth of nations (pg 104)
Smith believed that people should be rewarded based on merit and not by the lot in life they were born into
Self improvement was the key motivator for people working hard and improving which is also good for the economy
An economic system that rewards based on merit it often called a meritocracy

34. Capitalism and Liberalism (pg 104)
Due to the ideas of Adam Smith and other liberal economists, and with the effects of the industrial revolution, economies all over the world began to evolve and change.
The old mercantile system was fading away in favour of economic liberalism, often called capitalism

35. Capitalism and Liberalism (pg 105)
In capitalism individuals are free to sell their labour and benefit from the profits. Individuals profit from their own work
The role of the government is to protect the individual rights and private property of people
During early capitalism it was not the job of the government to interfere with the trade of goods or labour

36. Capitalism and Liberalism (pg 105)
One of the major events in the emergence of liberalism was the move away from mercantilism to capitalism Look at the Table on page 105 for a comparison of mercantilism and capitalism

37. Capitalism and Liberalism (pg 105)
There is a natural cycle to the economy
When the economy is good they call it a boom
When the economy is bad they call it a bust
The cycle is referred to as the boom and bust cycle, or the business cycle.

38. Capitalism and Liberalism (pg 105)
It was believe by many economic liberals at the time of Adam Smith that the government should not interfere in the business cycle
French economists called this laissez-faire capitalism

39. Capitalism and Liberalism (pg 105)
Liberal economics writers were part of a movement called classical liberalism
Classical liberalism is based on the writings of philosophers such as
Adam Smith
John Locke

40. Classical liberalism (pg 105)
Classic liberalism above all believe that individual rights and freedoms should be upheld and are the most important aspects of a society
Classical liberalism however focused mostly on economic liberalism for merchants and not so much of the rights of the ordinary people

41. Classical liberalism (pg 105)
Why do you think classic liberals would want the government to stay out of the economy?

42. Classical liberalism (pg 105)
Why do you think people today would want the government to intervene in the economy?

43. Liberal ideas on political systems (pg 106)
During the Renaissance (14th to 17th century) people started to focus more on the individual
The focus on the importance of the individual helped inspire revolutions in both the United States and France ( )