It's hard to imagine a set of ideas that has had a greater impact on the world we live in today than liberalism. Everything from individual rights, to how we perceive the relationship between states and their citizens and even how we manage the economy - all of these things are influenced by liberal thought. Liberalism itself has evolved over the centuries, from its early beginnings in the Enlightenment Era to the present day - so let's go back to the beginning and take a closer look at the key ideas of classical liberalism.
Classical Liberalism Definition
The term classical liberalism refers to the original form of liberal thought that emerged in Europe during the eighteenth and nineteenth centuries. Liberalism developed in response to the absolute monarchies which ruled over many European nations during this period. Classical liberalism promotes individual freedom and liberty, arguing for a limited role for the state, individual and collective civil liberties and economic freedoms. Classical liberalism influenced the European Englightenment - a trend towards scientific enquiry and the application of reason rather than the acceptance of superstitious or dogmatic principles.
Classical Liberalism Key Ideas
The first key idea for classical liberals was how best to preserve individual freedoms within society and how individuals should interact with each other. Firstly, classical liberals viewed individuals as rational and self-serving. Secondly, they argued that human beings have an innate egoism which drives them to maximise their position in society.
To remedy the negative outcomes of human selfishness, John Stuart Mill developed the key idea of a distinction between two kinds of liberty. The first, which he called 'self-regarding', was concerned with actions which impacted the individual alone. In these 'self-regarding' endeavours, Mill argued that individuals should enjoy absolute liberty. However, when pursuing 'other-regarding' actions which had a bearing on the lives of others, Mill argued that individuals must be willing to sacrifice a degree of liberty.
Classical liberals were also deeply interested in the relationship between individuals and the state. This is because they viewed the state as an institution which could strip individuals of the liberties which they saw as central to human existence. The state was first justified in the liberal tradition in 1651, in Thomas Hobbes's seminal work Leviathan. In it, Hobbes argued that the relationship between individuals and the state was a 'necessary evil'. Without it, we would exist in a 'state of nature' where life is 'nasty, brutish, and short'. Hobbes, therefore, proposed the key idea of a 'social contract' between individuals and the state, in which 'the mutual transferring right' would take place. The state would protect individuals from coercion, without becoming a coercive force itself.
A copy of Thomas Hobbes' Leviathan, in which he developed the argument of the 'state of nature' which justified the social contract, WikiMediaCommons
Classical Liberalism Key Philosophers
So, who were some of the key theorist behind classical liberalism, and what were the key ideas?
John Locke (1632 - 1704)
John Locke wrote Two Treatises of Government (1690), attacking absolute monarchy and supporting a limited government based on natural individual rights. Locke envisioned a state where individuals were governed by consent, not by the Divine Right of Kings which had legitimised Sovereign authority throughout history.
David Hume (1711 - 1776)
Influenced by Locke's theory of human nature and self-fulfilment, Hume's chief concern was epistemology - the study of knowledge. Hume's works concluded that individuals were chiefly governed by passions, and he, therefore, attempted to remedy this reality with the introduction of reason and moralism. The human mind, in Hume's conception, was a battle between the passions and reason, which the inclusion of a rational state would help to remedy as
Morals excite passions, and produce or prevent actions. Reason of itself is utterly impotent in this particular.1
Immanuel Kant (1724 - 1804)
Immanuel Kant's philosophical enquiry into reason was governed by the idea that human beings were ruled by the senses. Kant's arguments were centred on the idea that the human experience must be focused on a priori knowledge, in other words, knowledge which has been reached through reasonable deduction. For Kant, the only reasonable and worthwhile exploration of philosophy or morals should be grounded in deduction from the physical world, as
Our knowledge begins with the senses, proceeds then to the understanding, and ends with reason. There is nothing higher than reason2
Jeremy Bentham (1748 - 1832)
Bentham's most significant contribution to classical liberalism came through his development of utilitarianism. Utility is understood as the property within an object from which individuals using them will derive pleasure or pain. Utilitarianism, therefore, seeks to allow the greatest number of people the greatest amount of access to the objects or pursuits in which they find utility.
For Bentham, utilitarianism was a moral principle that, if properly implemented, would provide governments with a near-perfect method of legislating. By providing the greatest good to the greatest amount of individuals, governments could not only promote well-being but also reduce suffering through legislating on issues such as public health. The desire to limit suffering was of great importance to Bentham, who stated
The question is not, "Can they reason?" nor, "Can they talk?" but "Can they suffer?3
John Stuart Mill (1806 - 1873)
Mill emphasised that the main purpose of any civilised society is to facilitate individual freedoms. This pursuit of liberty was to be carried out by egotistical, rational, self-interested individuals. In his work, On Liberty, Mill elaborates his conception of self-regarding freedom, which we discussed above, by saying that
The only freedom which deserves the name is that of pursuing our own good in our own way, so long as we do not attempt to deprive others of theirs4
A statue of J.S Mill, resurrected at Victoria Embankment, London, WikiMediaCommons
Classical versus Modern Liberalism
So, how do the ideas of Classical Liberalism compare to those of the modern school of liberal thought, which emerged in the twentieth century?
Similarities between classical and modern liberalism
Here we'll discuss the key similarities between these two schools of thought.
Individualism
Firstly, both classical and modern liberals believe in individualism. They both recognise the importance of supporting individuals in self-determination, self-realisation and self-fulfilment. However, there are slight differences in how these concepts are understood. Nevertheless, both prioritise the intrinsic value of every individual.
Capitalism
Both theories are against state-controlled economies. They both support concepts such as private ownership and capitalism, subscribing to the economic model of laissez-faire capitalism as developed by Adam Smith. This can be defined as an economic system organised in a free-market structure and where wealth is privately owned.
Limited state
Both believe in limited state intervention. However, the extent of permissible state intervention varies. Both Classical and Modern Liberals believe in the importance of holding the state to account and the government serving the interests of the individual. The most notable example of this belief in accountability is the development of the US Constitution.
Differences between classical and modern liberalism
| Classical Liberalism | Modern Liberalism |
| Negative/Positive freedom | Classic liberals believe in negative freedom, or freedom from interference. They are particularly conscious of interference from the state | Modern liberals believe in positive freedom. Positive freedom therefore is not just grounded in freedom from interference, but freedom to be supported in the pursuit of your interests |
| Role of Society | Adopting utilitarianism, classical liberals believe that by pursuing their own self-interests, individuals will maximise the amount of happiness and utility in society | Modern liberals view society as a support structure to promote human flourishing. Rather than individuals acting purely out of self-interest, modern liberalism promotes an outward-looking mentality. |
| State Intervention | Classical liberals do not condone state intervention, apart from when it is necessary to protect individuals from the threat of coercion. | Modern liberals argue for an ‘enabling society’; a larger state that helps individuals to achieve their potential. Essentially, they believe in helping people help themselves. |
| Economic Models | The classical liberal model of capitalism is one in which there are minimal restraints. Individuals should be left to pursue their interests under the guidance of the 'invisible hand' of the market | Modern liberals recognise the flaws in capitalism and therefore there should be provisions in place to help support individuals who are subjected to the shortcomings of capitalism. |
Classical Liberalism Impact
The impact of Classical Liberalism has been incredibly far-reaching, laying the foundations for modern economic and political thought. In their discussion of the rights of individuals and the state, they instigated revolutions and sparked intellectual debates which continue today.
Classical Liberalism's Impact on the Economy
The works of theorists such as Adam Smith and John Locke had a profound impact on the development of free-market economics. Smith's idea that the 'invisible hand' of the market should guide the economy instead of state intervention had a profound impact on economic thought. Smith's seminal work, The Wealth of Nations (1784), laid the intellectual foundations for the unrestrained capitalism of Great Britain's Industrial Revolution in the eighteenth and nineteenth centuries.
Smith also criticised the brutal practice of slavery by colonial powers such as France, Great Britain, and the United States. Smith claimed that slavery, from a purely economic standpoint, was inefficient and irrational, as a slave workforce will never be as efficient as individuals working for a material incentive.
Lastly, the concept of the free market had a major impact in the late twentieth century, with the development of neoliberal economics under various New Right administrations across the Western world. The principle of the rational, self-serving individual existing in an atomistic society had great appeal for New Right administrations such as Margaret Thatcher's government in the UK (1979 - 1990).
Classical Liberalism's impact on Politics
Perhaps the most notable impact of classical liberalism on the political landscape of the Western world came with the onset of the French Revolution in 1789. The principles of the French Revolution, 'Liberty, Equality, Brotherhood', stood in opposition to the absolute monarchy that had ruled over France for centuries. This revolutionary slogan was inspired by the writings of the classical liberal philosophers, who promoted the dissolution of monarchies in favour of a rational, inclusive democracy. Indeed, many notable philosophers such as Immanuel Kant supported the initial phases of the Revolution, until the beginning of the brutalist Jacobin regime in 1793.
The classical liberal idea of the social contract as a mechanism through which to escape the State of Nature and guarantee security from coercion was developed by the twentieth-century philosopher John Rawls. The Rawlsian social contract, however, is not simply a means for avoiding coercion and turmoil. In A Theory of Justice, Rawls dissects the inception of the Social Contract as a moment in which individuals could achieve 'justice as fairness' through equality of opportunity and the protection of the vulnerable.
A depiction of the storming of the Tuileries Palace during the French Revolution, 1792, WikiMediaCommons
Classical Liberalism - Key takeaways
- Classical liberalism is an ideology which frames society as a collection of rational individuals working in their own self interests.
- Classical liberalism views the ideal state as one that is minimal and non-interfering.
- The key ideas which make up classical liberalism are negative freedom, the egoistical individual, utilitarianism and the social contract.
- Some of the key thinkers who established the ideology include John Locke, David Hulme, Immanuel Kant, Jeremy Bentham, and J.S. Mill.
- Locke and Kant were particularly influential in the construction of the Social Contract theory.
- Bentham is considered to be the founder of utilitarianism.
- J.S. Mill constructed the idea of negative, self-regarding freedoms.
- Modern liberalism emerged in the 20th Century, in response to the consequences of unrestrained capitalism, such as massive inequality.
- Modern Liberals sought to harness the power of the state in order to support the most vulnerable in society through some degree of intervention and welfare programmes.
- Classical liberals, however were commited to the free market which inspired the policies behind the UK Industrial Revolution and the neoliberal policies of the New Right.
- In terms of its political impact, the principles of Classical Liberalism had a direct influence on the French Revolution of 1789.
- Furthermore, the debate around the social contract continued well into the twentieth century through the work of John Rawls.
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