1. History of Classical Liberalism
Chapter 3 Part 1
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

2. Principles of Classical Liberalism
Rule of Law
Individual Rights and Freedoms
Private Property
Economic Freedom
Self-interest
Competition
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

3. Principles continued…
The importance of human rationality
Free market economy that operates with limited government intervention that relies on the choices that rational individuals make in their own self-interest
Page 105-timeline
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

4. Principles continued …
The Enlightenment or the Age of Reason brought all thinking together in one focus in the 17th and 18th centuries
Starting in the 14th century and continuing on through the 18th century a group called the Humanists developed
They believed in the importance of arts and literature alongside of faith
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

5. Principles continued
They based their views of life more on reason than on religion
They sought meaning and purpose in love, beauty, art and the development of self
Along with this came a questioning of the authority, teachings, and practices of the Roman Catholic Church
Out of this came the Protestant Reformation
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

6. Principles continued …
Religious wars were rife and contests for imperial expansion dominated the social, political, and economic affairs of Europe
As well, by the 17th century, the breakdown of the feudal economic order was under way
Cities became more important, international trade expanded and a wealthy middle-class developed
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

7. Principles continued
Peasants went to the city seeking work leaving the aristocracy with fewer people to work their land
As society was changing it was argued that the role of government was one of maintaining security and the rule of law
In reality this new concept of classical liberalism applied mainly to the newly empowered entrepreneurial class
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

8. Principles continued
Thinkers related to these thoughts are Montesquieu, Smith and Mill
Review of Hobbes and Locke on pages
Divine Right of Kings: monarchs came to believe they were no longer bound by any earthly authority, since their status was determined by God
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

9. Charles de Secondat, baron de Montesquieu
Montesquieu believed in the worth of the individual, the equality of individuals and the accountability of government
He also believed in the separation of powers-government should be split into 3 branches-executive-legislative and judicial
All branches would be separate but dependent on one another-one would not be stronger than the others
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

10. Montesquieu continued …
To make this system work you needed people involved in the system or in other words-democracy
Each citizen should participate in and be aware of the laws and the workings of government
His ideas are reflected in the U.S. Constitution
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

11. John Stuart Mill
He advocated the protection of individual freedom and the promotion of individual decision making as the core of societal institutions
The only limitations that should be placed on the individual should be those that protect the liberties of others
He also advocated free speech as a necessary condition for intellectual and social progress
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

12. Laissez-Faire Economics
The coming of the Industrial Revolution changed Britain’s traditional economy from one of subsistence farming to factory work
Britain’s development of a sea power laid the groundwork for this as did its early movement towards parliamentary government which consisted mainly of wealthy landowners and merchants
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

13. Laissez-Faire continued…
This early parliament passed the Enclosure Acts which helped the merchants and landowners by forcing thousands of low-income farmers off their farms and into the cities
This resulted in a large pool of cheap labour
With the Enlightenment new ideas about man joined these economic ideas
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

14. Laissez-Faire continued …
New ideas bout human potential and individual worth
A government friendly to business and innovation
A huge amount of investment capital and cheap labour, and a large number of innovators and inventors who were encouraged by the potential of reward
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

15. Laissez-Faire continued …
This resulted in the development of the factory system, the mass production and consumption of consumer goods, the expansion of capitalism and free enterprise, and the shaping of the modern industrialized world
It also produced extremes of wealth and poverty, palatial estates and horrible slums, excess and starvation, child labour, worker abuse and the degradation of the environment
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

16. Laissez-Faire continued …
Laissez-Faire is a French term that means to leave alone
It referred to a reduction of government involvement in the economy
It came out of the theories of the physiocrats-a group of French Enlightenment philosophers who critiqued the economics of Mercantilism
The pursuit of self-interest in economic affairs would benefit everyone
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

17. Adam Smith A Scottish political economist
He spent time in France with the physiocrats
He was against the prevailing mercantilist system and believed that if people worked first and foremost for themselves, everyone-including the government-would be better off
He published the Wealth of Nations where he described a system where individuals work for their own self-interest in a free-market system
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

18. Adam Smith continued …
He insisted that individual self-interest in a free market would lead to a stronger economy and would therefore benefit most people in society-quote pg. 112-invisible hand
By having every individual look after his or her own best interests, he or she unwittingly ends up helping everyone else, by providing jobs and cheaper products
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society

19. Adam Smith continued …
For Smith the government’s role should be limited to maintaining the rule of law, to ensuring contracts were followed and to providing some public works-education and roads
This is the foundation of the capitalist system
Program of Studies-2.5: Examine the relationship between the principles of liberalism and the origins of classical liberal thought-2.6: Analyze the impacts of classical liberal thought on 19th century society