Classical Liberalism

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

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

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

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

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 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

1. David Hume, A Treatise of Human Nature, 1740

2. Immanuel Kant, Critique of Pure Reason, 1781

3. Jeremy Bentham, The Principles of Morals and Legislation, 1789

4. J.S. Mill, On Liberty, 1859