Economic liberalism

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Economic liberalism is a

Keynesianism in the 20th century. Historically, economic liberalism arose in response to feudalism and mercantilism
.

Economic liberalism is associated with markets and private ownership of

opposition to trade unions are also common positions.[4]

Economic liberalism can be contrasted with

planned economies and non-capitalist economic orders, such as socialism.[5] As such, economic liberalism today is associated with classical liberalism, neoliberalism, right-libertarianism, and some schools of conservatism like liberal conservatism and fiscal conservatism. Economic liberalism follows the same philosophical approach as classical liberalism and fiscal conservatism.[6]

Origin and early history

Adam Smith was an early advocate for economic liberalism.

Developed during the

capitalist economic system in the late 18th century and the subsequent demise of the mercantilist system. Private property and individual contracts form the basis of economic liberalism.[8]

The early theory of economic liberalism was based on the assumption that the economic actions of individuals are largely based on self-interest (

Lord Ackner, denying the existence of a duty of good faith in English contract law, emphasised the "adversarial position of the parties when involved in negotiations".[9]

Initial opposition

Initially, the economic liberals had to contend with arguments from the supporters of feudal privileges for the wealthy, traditions of the aristocracy and the rights of monarchs to run national economies in their own personal interests. By the end of the 19th century and the beginning of the 20th century, this opposition was largely defeated in the primary capital markets of Western countries.

The

J. R. McCulloch in his Dictionary of Commerce (1834), but criticized by British politicians opposing free trade such as Prime Minister Benjamin Disraeli, who cited the Ottoman Empire as "an instance of the injury done by unrestrained competition" in the 1846 Corn Laws debate, arguing that it destroyed what had been "some of the finest manufactures of the world" in 1812.[10]

Contrast with other economic philosophies

Contrast between British and American views

Historian Kathleen G. Donohue argues that

classical liberalism in the United States during the 19th century had distinctive characteristics as opposed to Britain: "[A]t the center of classical liberal theory [in Europe] was the idea of laissez-faire. To the vast majority of American classical liberals, however, laissez-faire did not mean no government intervention at all. On the contrary, they were more than willing to see government provide tariffs, railroad subsidies, and internal improvements, all of which benefited producers. What they condemned was intervention in behalf of consumers."[11]

Limits of influence and influence on other perspectives

In its initial formation, economic liberalism was focused on promoting the idea of private ownership and trade; however, due to a growing awareness of concerns regarding policy, the rise of economic liberalism paved the way for a new form of liberalism, known as social liberalism. This promoted an accommodation for government intervention in order to help the poor. As subsequent authors picked up and promoted widespread appeal of a subset of Smith's economic theories to support their own work—of free trade, the division of labour, and the principle of individual initiative—this contributed to obscuring other aspects of the rich body of political liberalism to be found in Smith's work. For example, his work promoted the ideal that the everyday man could hold ownership of his own property and trade, which Smith felt would slowly allow for individuals to take control of their places within society.

Economic liberalism and fiscal liberalism (conservatism)

Economic liberalism is a much broader concept than fiscal liberalism, which is called fiscal conservatism or economic libertarianism in the United States.[12] The ideology that highlighted the financial aspect of economic liberalism is called fiscal liberalism, which is defined as support for free trade.[13]

Position on state interventionism

Economic liberalism opposes government intervention in the economy when it leads to inefficient outcomes.

social inequalities that result from market outcomes.[15][16]

See also

References

  1. ^ a b Adams 2001, p. 20.
  2. ^
    ISBN 978-1351034647. Archived
    from the original on 2021-07-21. Retrieved 2021-07-21.
  3. S2CID 146351369
    .
  4. ^ Boudreaux, Don (2015-03-31). "Milton Friedman on the Real World Effects of Labor Unions". Cafe Hayek. Archived from the original on 2020-11-25. Retrieved 2020-10-13.
  5. ^ Brown, Wendy (2005). Edgework: Critical Essays on Knowledge And Politics. Princeton University Press. p. 39..
  6. ISBN 978-1107041530. Archived
    from the original on 2021-07-26. Retrieved 2021-07-26.
  7. ^ Aaron, Eric (2003). What's Right?. Dural, Australia: Rosenberg Publishing. p. 75.
  8. ^ Butler 2015, p. 10.
  9. ^ Walford v Miles [1992] 2 A.C. 128
  10. ^ Paul Bairoch (1995). Economics and World History: Myths and Paradoxes. University of Chicago Press. pp. 31–32. Archived from the original on 2017-10-12. Retrieved 2017-08-16.
  11. ISBN 978-0801883910. Archived
    from the original on 2021-02-01. Retrieved 2016-12-03.
  12. ISBN 978-1135923112
    .
  13. ISBN 978-0191514449
    . Hence the emphasis today on the study of political economy, and the identification of Gladstone with 'fiscal liberalism', defined above all as the liberalism of free trade.
  14. ^ Turner 2008, pp. 60–61.
  15. ^ a b Turner 2008, pp. 83–84.
  16. ^ a b Balaam & Dillman 2015, p. 48.

Bibliography

External links
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