1. Origins of Classical Liberalism

2. ***Key Concept: Ideologies often change over time.***
Haudenosaunee Confederacy (Iroquois Confederacy):
Alliance of 5 (then 6) nations
One of the first democracies in the world
At the time of first contact between First Nations & Europeans, most societies in Europe did not practice democracy or social equality

3. Great Law of Peace – constitution of the Iroquois confederacy, guaranteed rights & freedoms including speech, religion, individual rights.
Great Law of Peace may have influenced the American Constitution (1787)
“93. Whenever a specially important matter or a great emergency is presented before the Confederate Council and the nature of the matter affects the entire body of the Five Nations, threatening their utter ruin, then the Lords of the Confederacy must submit the matter to the decision of their people and the decision of the people shall affect the decision of the Confederate Council. This decision shall be a confirmation of the voice of the people.”

4. Europe began to change in 1700s/1800s due to liberal ideas like equality & freedom.
Absolute monarchy – system of gov’t where king/queen has total power, individual freedoms for citizens were limited or didn’t exist at all
Monopoly – where one producer dominates a specific industry or business

5. Key Ideas of Classical Liberalism:
Human nature is rational, good, all are equal
Small & limited gov’t is best
Protection of individual rights & freedoms
Rule of law
Democratic, elected governments
Major focus on free-market economy, less concern for lives of ordinary citizens

6. Adam Smith Monopolies = no competition = poor products, high prices
Competition encourages self-interest
Invisible Hand – in a free-market the “Invisible Hand” unintentionally improves prosperity for all
makes sure consumers wants/needs are met by producers who are driven by profit motive
Gov’t needs to stay out of the economy (“laissez-faire”) to allow this to happen
These ideas are the heart of economic liberalism or capitalism

7. John Stuart Mill
Gov’t exists only to protect individual rights, individuals must have freedom and choice in their actions.
Believed freedom of speech was extremely important, it is important to have dissent in society (many different opinions)