Liberalism

Liberalism is generally considered to have originated during the Age of Enlightenment and is often seen as the first systematic ideology.

The Stoics posited that to truly understand a person’s life philosophy, one should observe their actions rather than their words. They believed that a good life was attainable through comprehending the natural order, as they held that all things were rooted in nature.

John Locke, David Hume, and Adam Smith’s ideas were essential in the historical construction of what may be called the liberal political theory. Yet, the liberal political theory in our contemporary age cannot be thought to be separate from the economic component.

Locke, who resided in London, is often associated with the Continental Enlightenment. In contrast, Hume and Smith, who lived in Scotland, are considered central figures of the Scottish Enlightenment.

This school, known to have opposed the Historical School in Germany, is known for its subjective theory of value, marginalism in price theory, and its unique approach to economic calculation.

Her reasoning revolved around the emphasis that human reason should be the primary guiding principle for all societal institutions and social interactions.

This theory seeks to apply economic analytical tools to political processes, treating political actors—such as politicians, bureaucrats, and voters—as utility maximisers similar to market participants.

Rothbard argued that the state’s natural tendency to expand would make it inherently harmful as a truly free society could only be achieved by minimising state intervention to the greatest extent possible.

The Chicago School was a strong promoter of monetarism and it has later incorporated theories of rational expectations and game theory into its field of analyses.

Dewey believed that democracy and social institutions should be continually improved or even reformed to ensure that individuals can fully participate in society and realise their potential.

This type of liberalism is the foundation of modern liberal thought and was primarily split into two influential streams: one inspired by John Locke and the other by the Scottish philosophers David Hume and Adam Smith.

However, without a legal system that was accepted by a nation, such a personal retribution would undoubtedly lead to excessive and arbitrary punishment. Such a biased punishment could very well disrupt societal harmony.

David Hume challenged the rationalist philosophies of his time, arguing that human behaviour is more influenced by sentiment and custom than by abstract reasoning.

Smith’s assumption was that individuals everywhere around the world would basically act in their self-interest and inadvertently contribute to the overall good of society. This, too, was a new concept known as the “invisible hand”, which summarised Smith’s ideas.

Spontaneous Order, on the other hand, emerges naturally without a central designer or plan. This concept is crucial in understanding how many social structures and practices develop.

Ontological individualism posits that the individual is the fundamental building block of society. This perspective asserts that societies are ultimately composed of individuals—the smallest units or “atoms” of social structures.

Classical liberalism often centres on the concept of negative liberty, which is the freedom from external interference, particularly from the government.

Private property signifies individual ownership, where only things can be owned, not people. The right to private property encompasses the freedom to exchange owned items with others.

Procedural justice is concerned with the fairness of the processes by which outcomes are achieved. It focuses on the adherence to established rules during economic exchanges rather than the specific outcomes of those exchanges.

Therefore, it is imperative that the state operates within clearly defined and transparent limits to prevent the dangers of absolute control.