POLITICAL SCIENCE PROJECT

ON
COMPARISON BETWEEN CLASSICAL
LIBERALISM AND MODERN LIBERALISM
 AKNOWLEDGEMENT

On the occasion of the submission of the project of Political Science on the topic ‘Comparison
between Classical Liberalism and Modern Liberalism’, I take immense pleasure in thanking our
Asst. Prof. Raka Arya for endowing me with this opportunity to project my ideas on this
wonderful topic. It is with her guidance and tremendous support that I have succeeded in
completing this project. I thank her for coming up with this idea because as a result of this, I
have imbibed intricate knowledge about the topic.
 TABLE OF CONTENTS

1. Introduction……………………………………………………………………………….4
2. Statement of problem……………………………………………………………………..6
3. Objective ………………………………………………………………………………....6
4. Classical Liberalism………………………………………………………………………7
5. Modern Liberalism……………………………………………………………………….10
6. Comparison between classical liberalism and modern liberalism……………………….12
7. Conclusion……………………………………………………………………………….15
8. Bibliography……………………………………………………………………………..16

3
 INTRODUCTION

LIBERALISM

Liberalism, as implied in its name, is a political ideology whose main concern is to protect and
enhance the liberty of individuals. As a political doctrine, liberalism did not emerge until the
early nineteenth century. However, liberal thoughts and values had been developed through
enormous social changes from the sixteenth century, and can even be traced back to as early as
ancient Greece and Rome.

Liberalism as a whole, can be defined as “a political philosophy based on belief in progress, the
essential goodness of the human race, and the autonomy of the individual and standing for the
protection of political and civil liberties.”

There are several common elements shared by all variants of liberalism. According to John Gray,
they can be summed up in 4 points.

1. Individualism

It reflects the belief that human beings are foremost individuals, rather than subjected to
any collectivity. Therefore, liberals aim at constructing a society in which individuals are
provided the freedom to pursue his or her own good or happiness.

2. Egalitarian or Equality

Liberals believe that all individuals are born equal, in terms of two equal rights, namely
"legal equality" and "political equality". However, as people have different talents or
abilities, liberals are devoted to provide equal opportunities for everyone to realize their
uneven potential.

3. Universalism

They affirm that the human process a unified morality. It should be taken in account
ahead of the difference of their cultural.

4
 4. Meliorism.

Meliorism means the belief that the world tends to improve and that humans can aid its
betterment. By meliorism, liberalism firstly implies a belief in the reason of human
beings. Through reasoning, individuals can make wise judgments and resolve disputes
by the means of debate and discussion. In this way, the society, which is the collection of
individuals and its construction are generally progressing. On this premise, liberals
believe that people should be offered enough toleration in order to pursue their own
interests. It is under this circumstance that the balance and progress of a society can be
achieved.

In more simplistic terms, Liberalism can be defined as the political ideology of preserving the
individual’s liberty. This begs the question, what is liberty? Liberty is interchangeable with
freedom, and it may be defined as “the ability to think or act as one wishes”. In other words,
Liberalism attempts to first argue that the foundation of society is founded upon by a social-
contract amongst individuals and that these individuals engage in said contract to best preserve
their ability to think and act as they wish. John Locke, the father of this tradition, affirms this
notion, arguing that “creatures of the same species and rank…should also be equal amongst
another,” and that “every man has a property in his own person…nobody has any right to but
himself”. Individuals are thus of prime importance (being all made in the image of God, and thus
maintaining equality in design and self-ownership), both in political power (such as the
establishment of a social contract and civil society), and economic pursuit (owning one’s own
labor, and the freedom of pursuing the fruit of ones labor). we can see core themes that set the
foundation for Liberalism: The Individual, Freedom, Reason, and Justice.

5
 STATEMENT OF PROBLEM

What are the difference and similarities between classical liberalism and modern liberalism?

OBJECTIVE

1. To understand what is liberalism.

2. To understand what is classical liberalism.

3. To understand what is modern liberalism.

4. What are the factors which were responsible for revision of classical liberalism?

6
 CLASSICAL LIBERALISM

The political foundations of classical liberalism root in a series of social changes from the
sixteenth century. The late Medieval saw the dissolve of feudalism and the rise of absolutism.
Meanwhile, the power of papacy was weakened and religious reformation was seen in European
countries. Rulers had to enforce the conformity either to Roman Catholicism or Protestantism.
This process triggered conflicts within and among the states. One example was the Thirty Years'
War from 1618 to 1648, which brought Europe an enormous damage. In the next century, as
industrialization gained pace, a new social class, namely the middle class emerges. They yearned
for more political participation and economic freedom. These factors triggered the revolutions in
the seventeenth and eighteenth century, the most notable of which were the Glorious Revolution
in England in 1688, the American Revolution from 1775-83, and the 1789's French Revolution.

Classical liberalism grew out of the 17th-century Age of Reason and the 18th-century
Enlightenment. This was a period when:

 Western culture broke its long-held faith in the presumptive and everlasting authority of
the past, and embraced instead the notion that human beings were capable of progressing
beyond the knowledge and insights of ancient scholars and writers;

 Skepticism gained unprecedented prestige, making it acceptable to doubt every tenet of

conventional wisdom or tradition that could not be readily justified by a valid criterion of
truth;

 It was widely believed that a commercial, secular, and religiously diversified state was
much to be preferred over a state dominated by the elite of any single faith; and

 A free-market, laissez faire economy was seen as the system best suited for the creation
of wealth.

7
These views were proposed and advanced by a host of giants in the fields of philosophy,
economics, and science among them Francis Bacon, Rene Descartes, Thomas Hobbes, John
Locke, the Baron de Montesquieu, David Hume, Joseph Butler, Denis Diderot, and Adam Smith.

No figure was more important than Locke, whose observation that all knowledge and ideas arise
from human experience paved the way to classical liberalism's humility about the limits of our
knowledge, its respect for freedom of thought and of religion, and its admonition against sudden,
revolutionary breaks with established tradition. Locke also identified the vital link between
political liberty and private property; indeed, history has since shown that only when a
government acknowledges the right of the individual to own private property, does that
government understand that there are boundaries to its own power.

The aims of the Liberal state as being first “being created by individuals and for individuals.
Second, social contract theory portrays the state as an umpire or neutral referee in society”. The
characteristic of the government is thus a passive role, or as Locke properly sums it as a ‘night
watchman’. This implies a minimist state, which both preserves one’s civil liberty (freedom from
government), and protects one from the state of war (individual or foreign aggression, and
governmental coercion). The Classical Liberals best wish to preserve this separation of
government and the privacy and liberty of individual, both politically, socially, religiously, and
economically. Society is generally atomistic, and made up of reason-driven individuals. Classical
liberals believe, given the liberty of the individual, man is best designed to maximize his
freedom to allow him maximized reason. This belief in the egoistical individual roots a system of
economic and moral efficiency, arguing that since man is best enabled to handle his own
economic and moral choices, he should be protected in-as-much as he doesn’t stumble over the
boundaries of another man’s liberties. In addition, Classical Liberals believe in the existence of
natural rights, found in the form of negative rights. Jefferson explained these national rights as
seen in the Declaration of Independence, “that all men are created equal, that they are endowed
by their Creator with certain unalienable Rights, that among these are Life, Liberty and the
pursuit of Happiness. That to secure these rights, Governments are instituted among Men,
deriving their just powers from the consent of the governed”. Besides the utter importance of
natural rights, and egoistical individual, Government is designed as a ‘necessary evil’. The
Classical Liberal ideal is then, the least government possible, the absolute protection of natural

8
rights, and the freedom of egoistical individuals to pursue their aims without fear of attack or
coercion from governments. This leads way to an acceptance of laissez faire economic
principles, as advocated by Adam Smith and David Ricardo. The Liberal political model was
extended to the economic realm, where reasonably, individuals should also be free to pursue
economic aims. “Every man, as long as he does not violate the laws of justice, is left perfectly
free to pursue his own interest his own way, and to bring both his industry and capital into
competition with those of any other man or order of men”. The economic functions best when
the government governs least. Due to man’s access to reason, and egoistical individualism,
Classical Liberalism sought to embrace and maximize the ideas of Adam Smith and free
markets, arguing that the preservation of man’s liberty naturally meant a preservation of his
economic endeavor. It from the perceived failures of a supreme laissez faire approach as well as
a different understanding of justice and equality, that the schism between Classical and Modern
Liberalism occurred.

9
 MODERN LIBERALISM

Towards the close of the nineteenth and the beginning of the twentieth century, the classical
Liberalism underwent great modifications. It its modified form it came to be known as Modern
Liberalism or Positive Liberalism. It differed from the earlier or classical Liberalism in so far as
it emphasized the positive rather than the negative aspect of liberty and presence of opportunities
to attain the self-appointed goals, rather than freedom from the state. With the change in the
goals, a change in methods was also effected.

Why need for revision of Liberalism was felt? A number of factors were responsible for
this.

 The success achieved by Liberalism in the nature of greater political and economic
liberty for the aristocrats and bourgeoisie, encouraged them to demand similar
concessions for the peasants and workers. As effective liberty for these sections could not
be possible without positive action, they insisted on positive action by the state.

 In view of the enormous expansion in franchise, the Liberalism could not continue to
promote the interests of the textile manufacturers of 'Manchester alone and had to modify
itself to accommodate the nationalist, democratic and socialist sentiments.

 With the growth of industries and cities, it became evident that economic freedom could
lead to inequalities and oppression of certain sections.

 The non-interference by the stale in the economic sphere resulted in exploitation of child
labour, growth of slums, and deterioration in the condition of the workers. This
convinced certain Liberals of the need of state regulation of economic life and hence the
need of revision in the old Liberalism. However, certain Liberals still clung to the old
dogmas of non-intervention and free trade.

10
In the revision of Liberalism philosophers like Jeremy Bentham, John Stuart Mill, T.H. Green,
Harold Laski etc. played a notable role. Bentham laid emphasis on the principle of "greatest good
of the greatest number" and insisted on the need of reforms in the field of law, education,
parliamentary system, prisons, poor relief. Similarly Mill while championing the cause of
individual liberty, wanted the state to interfere in those matters through which the social welfare
of the people could be promoted. He, therefore, favoured state regulation of education, contracts
of marriage and slavery, working hours and working conditions of workers, fixation of minimum
wages, compensation in case of injury etc. But it was T.H. Green who openly pleaded direct
intervention by the state to eradicate evils like ignorance, pauperism and drinking of liquor. He
wanted the state not merely to perform regulatory and protective functions, but to work for the
removal for all those external hindrances which stood in the way of individual's voluntary
performance of good acts. Similarly Laski tried to bring about reconciliation between the
principles of individual liberty and state interference. He considered the state as an important
instrument for securing general welfare.

A brief look at the view of Mill, Green and Laski shows that the modern or positive Liberalism
has certain distinct features and differs from the traditional Liberalism.

1. While the Liberalism of nineteenth century took a two dimensional view of the human
nature the revised Liberalism looks at the man not only as an individual in society but as
a person with a continuing need for self-expansion and reintegration. In other words, the
modern liberalism attaches more importance to the individuals, subjective feeling of
freedom and the circumstances which give to this feeling an objective reality rather than
the impediments to motion.

2. While the classical Liberalism considered the state as a necessary evil, the modern
Liberalism considers the state as a positive instrument for the promotion of the general
welfare of the community. It wants the State to participate in social, political, economic
and cultural activities in the interest of the individual.

3. Unlike the classical liberal thinkers who considered individual's rights and liberties as
natural the modern liberal thinkers consider the rights and liberties as the creation of the
state, which can curtail them if they obstruct the welfare of the society.

11
 4. In the economic sphere also the modern Liberalism unlike the classical Liberalism
(which favoured complete economic freedom) is in favour of regulation and control of
economic life in the larger interest of the community. It favours positive action in the
part of the state for the removal of hunger, disease, poverty etc.

COMPARISON OF CLASSICAL AND MODERN LIBERALISM

Negative liberty vs. positive liberty

The distinctions between classical and modern liberalism root in their different understanding of
liberty.

English philosopher Isaiah Berlin made a profound distinction between two concepts of liberty,
which he called "negative liberty" and "positive liberty". By being free in a negative sense,
Berlin meant "not being interfered with by others". While in the second case, freedom means the
capability of the individual "to be his own master”. Classical liberals focus on the maximizing of
negative liberty, while by contrast, modern liberals hold that the government should assistant
individuals to realize their positive freedom.

Minimum state vs. social welfare

By advocating a minimal state, classical liberals focus on the maximizing of negative liberty. In
a minimal state, only three core functions are left in hand of the government. Firstly, maintaining
domestic order with organizations such as police force. Secondly, it should enforce contracts or
agreements between citizens, which means the function of judiciary. Thirdly, the state should
protect the people from external threat, thus a military is needed.

By contrast, modern liberals hold that the government should assistant individuals to realize their
positive freedom. Therefore, social welfare programs are strongly upheld. However, there was
still a boundary. According to T.H Green, when and only when individuals are in threat of being

12
enslaved by liberty should the government intervene. In another word, social welfare should help
those who cannot help themselves.

Laissez-faire vs. government intervention

Adam Smith asserted that the "invisible hand", namely the self-interest of the individual in a free
market would lead to the well-being of the economy. In order to benefit himself, one has to
produce according to the demand of the market, which Smith phrased as "invisible hand". On the
contrary, government intervention is dangerous as it was exercised "in the hands of a man who
had folly and presumption enough to fancy himself". By contrast, modern liberal economists,
such as Keynes, pointed out that economy is not perfectly self-managing. Only under the rule of
supply and demand, monopolization is unavoidable. Profits fall into the hands of a few people
while the mass are incapable of consuming, which doom the end of capital circulation economic
prosperity. Only with government intervention can the economy maintain a prolonged
prosperity. (John Maynard Keynes).

However, it is notable that the idea of free market was never fully abandoned by modern liberals
even Keynes. Unlike socialists, they had no intention to nationalize the economy or interfere
with the mechanism of supply and demand. According to Keynes, the "visible hand" functions
not by cutting wages to insure full employment, but by "expansionary fiscal policy", such as
spending money on public projects to expand demand.

Historical context

In order to evaluate both concepts of liberalism, we should take in to consideration their

historical contexts. Because every political philosophy is the product of a certain time and
circumstance and therefore has its limitation.

classical liberalism was born in a time of the transformation from feudalism to absolutism. It was
a time when the government still ruled over people. Hence, the deep suspicion of the government
is reasonable. In a time when the negative liberty of individuals were everywhere under threat, it
is important to introduce the concepts of "social contract" and restrict the power of government
at any cost.

Modern liberalism however, addressed mainly the problem emerging in industrialization. It had
been observed that even if free from all external restrictions, sometimes people are still

13
vulnerable and incapable to realize themselves. In addition, with the development of
representative democracy, government itself had gained more trust that it can represent the will
of the individuals.

Nowadays the idea of social welfare and economic intervention has been widely accepted in
most western countries. However, there are still a lot of questions. One of them is that if
government is justified to intervene, what should be the limitation?

With respect to social welfare, modern liberals have provided the answer themselves.

In his Theory of Justice, John Rawls suggested two principles to justify redistribution. The first
one, which he called equal principle, suggests that individuals should have equal rights to basic
liberty. The second principle, which is difference principle, inequality is justified, only if it
promotes the well-being of the worse-offs compared to in the condition of equal liberty.

14
 CONCLUSION

From its sprout in the seventeenth century, to its transformation starting in the late nineteenth
century, and until the revival of its original ideas in the recent decades, liberalism constantly
adjust itself according to time and circumstances. Due to different historical contexts, Classical
and modern liberalism explained "liberty" from different perspectives. Compared with classical
liberals, modern liberals have more confidence in the government and that uphold more
intervention in social and economic affairs. Nevertheless, the belief in the supreme value of
individuals and the reason of human beings, the respect for equality and universality of morality
remain unchanged. In contemporary society, although it have been widely accepted that
government should protect the positive liberty of individuals, what is the limitation of
government intervention will remain a question.

15
 BIBLIOGRAPHY

1. www.merriamwebster.com
2. http://www.britannica.com/EBchecked/topic/339173/liberalism
3. http://www.discoverthenetworks.org/viewSubCategory.asp?id=1225
4. http://en.wikipedia.org/wiki/Liberalism
5. http://plato.stanford.edu/entries/liberalism/

16