19 th Century Liberalism Classical Liberalism

1. 19th Century LiberalismClassical Liberalism SOC 30-1 Textbook: chapter 3 SOC 30-2 Textbook: pg. 101-123

2. Capitalism = classical liberalism • An economic system that is based on: • Free markets • Fair competition • Wise consumers • Profit-motivated producers • A minimum amount of government involvement • SOC 30-1: Read and consider the perspectives of classical liberalism on pg. 102-103

3. Capitalism = classical liberalism • Classical Liberalism originated in Great Britain and had an immediate impact on society • The principles, beliefs, and values of classical liberalism affected many countries and peoples around the globe • It embraced the all of the six principles of individualism previously studied

4. Capitalism = classical liberalism “Free Market” • Was considered the best economic system of classical liberalism • “an economy that operates with limited government intervention and relies on the choices that rational individuals make in their own self-interest

5. Classical Liberalism Timeline • Copy the timeline found on page 105 into your notes • Note the “parents” of classical liberalism • Political parent – The Enlightenment • Economic parent – The Industrial Revolution

6. Thomas Hobbes • John Locke • Montesquieu • Adam Smith • John Stuart Mill • Ricardo • Dickens Classical LiberalismPhilosophers Philosophers in bold are the biggest names. We will study them in detail. 30-2: you are responsible for knowing the four philosophers in bold in detail 30-1: you are responsible for knowing all seven philosophers in detail

7. The Enlightenment (late 17th-18thcenturies) • Had its roots in the Renaissance and Reformation from the 14th-16th centuries • Revival of Greek and Roman thinking • A move to defend thinking through the use of logical argument and reason • This led to a group of thinkers known as the humanists • Stressed the importance of the arts and literature in addition to matters of faith

8. The Enlightenment Enlightenment Trends • Religious strife – new denominations • Contact with non-Christian civilizations • Changing hierarchy of power (away from the nobility and the Church) • Imperial expansionism • Breakdown of feudal economic order • Emergence of a wealthy middle class • Breakdown of the aristocracy

9. Principles of Classical Liberalism

10. Principles of Classical Liberalism “There can be no freedom of press if the instruments of printing are under government control, no freedom of assembly if the needed rooms are so controlled, no freedom of movement if the means of transport are a government monopoly” – Friedrich Hayek “Liberalism”

11. The Industrial Revolution Begins around 1750, in Great Britain Britain’s traditional economy based on agriculture is overtaken by an industrial economy

12. The Industrial Revolution:Why Britain? • Britain was an island • Britain depended on large-scale trade, thus it had a massive navy & commercial fleet • This made both the government and individual

13. The Industrial Revolution:Why Britain? • Political Reasons • Parliamentary government & Constitutional government • House of Commons: consisted of wealthy landowners and merchants • Enclosure Acts in 1773 force the poor into cities (cheap labour)

14. The Industrial Revolution:Why Britain? • Enlightenment thinkers • We have seen their thoughts already • These three factors came together: • New ideas about human potential and individual worth • A government friendly to business and innovation • A huge amount of investment capital and investors

15. A young “drawer” pulling a coal tub along a mine

16. The Industrial Revolution:The Factory System What is Did Negative Effects • Mechanization of labour • Mass production & consumption of consumer goods • Expansion of capitalism and free enterprise • Extremes of wealth and poverty • Palatial estates and horrible slums • Excess and starvation • Child labour; worker abuse • Degradation of the environment

17. The Industrial Revolution = Laissez-faire Economics • Is a French term • Means: “leave people alone to do as they wish” • This is the form of capitalism which is seen within classical liberalism • Reduction of government involvement in the economy • Growth of individual actions and achievements in economic decisions

18. The Industrial Revolution = Laissez-faire Economics • Laissez-faire economics is a reaction to mercantilism • In mercantilism – all economic actions are meant to benefit the state • Adam Smith one of the most ardent defenders of Laissez-faire economics

19. Laissez-faire VS Mercantilism Laissez-faire Mercantilism • Everybody should work first and foremost for themselves • Even the state itself should work for itself first • This will enhance the overall economy, benefitting everybody See Smith’s quote on page 112 in 30-1 textbook • Increase the wealth of the state at all costs • However, individual wealth does not increase • Thus only a few people enjoy the increased wealth that the economy brought the state • The aristocracy

20. How did Classical Liberalism influence the 19th century?

21. Industrialization “The industrial Revolution was…the most far-reaching, influential transformation of human culture since the advent of agriculture eight or ten thousand years ago…The consequences of this revolution would change irrevocably human labour, consumption, family structure, social structure, and even the very soul and thoughts of the individual.” -Richard Hooker “The Industrial Revolution”

22. Enclosure

23. Commercial & Industrial Revolutions • Voyages in the 15th/16th century had brought gold and silver to Europe from the Americas • This discredited mercantilism in favour of free trade • This gold was a source of capital for factories • Factories: • Reduce human error and dependency on humans • Create better quality goods with more speed

24. Social Impacts • Class Structure • Wealth previously was based in land ownership • Now, wealth was based on business and trade • Nouveau Riche (the newly wealthy) • Consisted of: layers, merchants, bankers, engineers, factory owners… • They loved to show off their wealth • Working Class • Toiled endlessly in miserable conditions • Often paid insufficient wages for even basic necessities

25. Social Impacts • Urbanization • The move of large groups of people from the country to the city • The rapid expansion of industry led to rapid urbanization in the 19th century • Workers’ houses were overcrowded, unsanitary, and miserable