Classical liberalism

Classical liberalism is a school of philosophy and economic theory that originated in the seventeenth and eighteenth centuries. It was inspired by the Protestant Reformation and the growing power of the European middle class. Classical liberalism was inspirational to many leaders of the era, including the American founding fathers. Its writings were reactionary against the powerful medieval guilds and against the historic aristocracy of Europe.

Proponents of classical liberalism believed that humans were born with natural rights, such as the pursuit of life, liberty, and property, and that these rights could not be altered or removed by any government. They believed that a government existed to serve and protect those rights and functioned best when it was kept small. They believed that the government ruled because the people allowed it to do so, not because kings and queens were born with any divine right to rule. They also believed in a free market, unregulated by the government in as many ways as possible.

In many ways, classical liberalism has had a strong influence on modern political parties. It is distinctly different from modern liberalism, namely because modern liberalism encourages labor laws, minimum-wage laws, and the government to continue regulating the economy. However, modern liberalism inherited the classically liberal view that the government has no business regulating the personal lives of citizens and tends to oppose such legislation. Conversely, many modern conservative parties hold economic views similar to those of classic liberalism but differ on social issues. Some smaller parties, such as the Libertarian party, hold views extremely similar to those of classic liberalism.

Background

Classical liberalism is distinctly different from the modern school of thought commonly called liberalism. It was first developed in the seventeenth and eighteenth centuries. It helped people who were opposed to the feudal nature of Europe’s societal hierarchies articulate their complaints. In previous eras, an individual’s social class in much of Europe was predetermined by the class of their parents. There was very little social mobility for the average person.

In the seventeenth and eighteenth centuries, a large merchant class had begun to earn significant economic power. They sought political and social power that reflected their economic power. Political philosophers who supported the merchant class rejected hereditary social status and began to theorize that an individual’s merit came not from lineage but from personal abilities and accomplishments. These philosophers developed the theory of natural law, which emphasized that each human is born with innate duties. Over time, these views evolved into theories that people are born with natural rights. These rights included the rights to life, liberty, and property. The philosopher John Locke argued that these rights were readily observable in nature and that any legitimate government was obligated to both observe and protect them. He also argued that should the state fail to secure such rights, then any revolution by the people to overthrow the government was a justifiable course of action.

These theories on natural rights eventually gave rise to the theory of social contract. In previous eras, most people believed that those born into noble families had a divinely ordained right to rule over others. As citizens continued to grow unhappy with their governments, and as the power of the middle class began to rise, new political theories began to take hold. Social contract theory hypothesized that governments do not rule by divine mandate but instead rule because citizens of a nation allow themselves to be governed. According to this theory, citizens could rebel against their governments at any time, overthrowing them and replacing them with more pleasing rulers.

As theories of natural rights and the social construct took hold, political writers and philosophers began to develop a new set of theories alongside these frameworks. These theories, like natural rights and the social contract, were directly opposed to the political theories of previous eras. They placed far more emphasis on the rights of the person and individual liberties.

Overview

Classical liberalism is a political philosophy that focuses on the rights of the individual, especially the rights to life, liberty, and property. It argues that these rights are inalienable and that humans should be allowed to take whatever precautions necessary to protect these rights. One method for protecting these rights is the formation of a government, which passes laws and creates systems to defend natural rights from violation. These governments have an innate obligation to serve the people. If they fail to serve the people, they should quickly be replaced.

Classical liberalism also differed from modern liberalism in that it did not believe that the government had any inherent justification for violating the rights of constituents. Most people believe that if someone demanded money from another person and threatened them with violence or imprisonment if they refused to give away their money, such an interaction would be considered theft. Classical liberalists argue that because rights are inherent to people and because the government has no special reason to violate those rights, the government demanding money from its citizens is another form of theft. For this reason, they tend to be opposed to taxes, tariffs, and unnecessary seizures of any kind.

In addition to being opposed to taxation, tariffs, and other forms of property seizure, most classical liberals favor an extremely limited government. They argue that the government’s primary role is to protect the rights of citizens and that it should have as few chances to interfere with the lives of citizens as possible. Classical liberalism is opposed to big government in general and tends to argue that big government is bad for the overall economy of a nation.

In the medieval era, artisans were organized into a strict guild system. Guilds worked together to set prices for labor and commodities, strictly controlling their chosen markets. Classical liberalism argues that such practices stifle innovation and restrict economic growth. Instead, classically liberal philosophers and writers argued that an unrestricted market would be able to police itself. Inefficient economic choices would result in failure, removing themselves from the market, while the best options would always prove the most profitable over time.

In an ideal world for supporters of classical liberalism, the government is barely involved in the economy. Businesses and workers negotiate to find a fair pay rate, and customers dictate the most they are willing to pay for a given product. Competition between various businesses serves to drive prices down and drive businesses forward. Businesses that can supply higher quality products for less money will survive, while less efficient businesses fail. By this process, as long as no larger power intervenes, the market adjusts itself until it is agreeable to both businesses and consumers. This theory is more commonly referred to as laissez-faire economics.

Classical liberalist writers rejected the idea that it was the responsibility of the government to provide for people experiencing poverty in any manner. They encouraged charity amongst the populace and believed that such acts should be handled on an individual basis rather than at the scale of the government. They also believed that people experiencing poverty needed to care for themselves and that it was their responsibility to pull themselves out of their dire circumstances.

Though classical liberalism is not commonly practiced in the modern era, many political parties promote parts of the philosophy. Many conservative parties push for economic deregulation, believing that classical liberalism was correct in its economic assertions. They seek to reduce the government’s role in businesses, rolling back minimum wage laws, labor laws, environmental restrictions, and other limitations on the power of businesses. Conservatives may also seek to shrink the government programs that provide welfare to the people out of the belief that it is immoral to tax the wealthy to provide for people experiencing poverty. Like their classically liberal predecessors, they believe that it is immoral for the government to take money from citizens if not absolutely necessary.

Other political parties have adopted the social views of classical liberalism. Though they may disagree that a small government creates a healthy economy, they believe that the government has no authority to regulate the personal lives of citizens. For this reason, they tend to oppose moral laws, or laws that restrict the personal agency of citizens. These include laws governing firearm ownership, narcotics possession, and religious practices.

Some modern political parties, like the American Libertarian Party, do closely resemble classical liberalism. They believe that the government should be kept small to keep it from interfering with people’s rights, and the government’s primary job should be protecting and enforcing those rights. However, political parties like the Libertarian Party tend to be smaller and less powerful than those who espouse more traditional platforms.

Bibliography

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Klein, Daniel B. “Libertarianism and Classical Liberalism: A Short Introduction.” Foundation for Economic Education, 3 May 2017, fee.org/articles/libertarianism-and-classical-liberalism-a-short-introduction. Accessed 17 Dec. 2024.

Longley, Robert. “What Is Classical Liberalism? Definition and Examples.” ThoughtCo., 29 June 2020, www.thoughtco.com/classical-liberalism-definition-4774941. Accessed 17 Dec. 2024.

Powell, Jim. “John Locke: Natural Rights to Life, Liberty, and Property.” Foundation for Economic Education, 1 Aug. 1996, fee.org/articles/john-locke-natural-rights-to-life-liberty-and-property. Accessed 17 Dec. 2024.

Raico, Ralph. “What Is Classical Liberalism?” Mises Institute, 1 Nov. 2018, mises.org/library/what-classical-liberalism. Accessed 17 Dec. 2024.