6.1.5
Other Important Liberal Ideas
Liberal Ideas of the Economy
Liberal Ideas of the Economy
Liberal political beliefs support a capitalist economy which has private ownership and is controlled by market forces. Liberal ideas of the economy include laissez-faire capitalism and keynesianism.
Laissez-faire capitalism
Laissez-faire capitalism
- Laissez-faire capitalism is the belief that competition between people, seeking their own profit, benefits all in society.
- Liberals believe in a capitalist economy that has private ownership and is controlled by market forces.
- A free market is one that is left to its own devices and does not have interference from the government.
- Classical liberals argue that this is the most efficient way to distribute resources in the economy.
Laissez-faire: supply and demand
Laissez-faire: supply and demand
- Prices are set by the forces of supply and demand and become stable so that producers and consumers can receive and pay a fair price for their goods and services.
- In the 'Wealth of Nations' (1776) Adam Smith argued that the ‘invisible hand’ regulates the market, meaning that there is always an efficient supply, demand, price and distribution of resources.
- Classical liberals argue that a free market promotes freedom and individual responsibility - an individual is able to choose how they engage with the market.
Keynesianism
Keynesianism
- Keynesianism is based on the ideas of the economist John Maynard Keynes and is an idea supported by modern and social liberals, rather than classical liberals.
- Keynesianism is an economic theory which rejects some ideas of laissez-faire economics.
- Keynesianism rejects the laissez-faire idea that the government should have no involvement in the economy, and that it can correct itself.
- Instead, the government should intervene to stimulate the economy by manipulating demand.
Keynesianism
Keynesianism
- Supporters of Keynesianism believed that the government should help the economy achieve price stability and full employment.
- This government intervention in the economy helps support some liberal ideas - such as equality of opportunity (by creating full employment), and the idea of the ‘enabling state’.
Other Important Liberal Ideas
Other Important Liberal Ideas
Other important liberal ideas include meritocracy, mechanistic theory and social contract theory.
Meritocracy
Meritocracy
- Meritocracy is the idea that individuals should be able to succeed in society on the basis of their ability rather than any other factor.
- Individuals should succeed based on merit rather than where they were born, how much money their parents had, and other circumstances of their birth.
- Individuals should have equal opportunities to succeed, so that those with the most ability are able to.
- Social mobility is important, as anyone should be able to achieve great things.
Mechanistic theory
Mechanistic theory
- Mechanistic theory is the idea that the state is a man-made creation that individuals create to serve their interests.
- Liberals believe that the state is created by individuals to protect freedom.
- As a result, interactions between individuals can help determine how the state functions.
- The mechanistic theory opposes the organic theory of the state.
- The organic theory of the state is favoured by conservatives, who believe that the state evolves over time.
Mechanistic theory example
Mechanistic theory example
- The social contract is an example of the mechanistic theory - individuals come together to vote for a government to make laws to uphold individual freedom.
- The individuals and the government have rights and duties towards each other.
- If the individuals don’t like the actions of the government they can vote it out of power - and therefore change how the state functions.
1Democracy & Participation
1.1Representative & Direct Democracy
1.2Wider Franchise & Suffrage
1.3Pressure Groups & Other Influences
2Political Parties
2.1How Political Parties Work
2.2Established Political Parties
2.3Emerging & Minor Political Parties
3Electoral Systems
3.1Different Electoral Systems
3.2Referendums & How They Are Used
4Voting Behaviour & the Media
5Conservatism
5.1Conservatism: Core Ideas & Principles
5.2Conservatism: Differing Views & Tensions
6Liberalism
6.1Liberalism: Core Ideas & Principles
6.2Differing Views And Tensions Within Liberalism
7Socialism
7.1Socialism: Core Ideas & Principles
7.2Differing Views And Tensions Within Socialism
8The UK Constitution
8.1Nature & Sources of UK Constitution
8.2Constitutional Change since 1997
8.3Role & Powers of Devolved UK Bodies
9The UK Parliament
9.1Houses of Parliament
9.2Comparative Powers
9.3Legislative Process
10The Prime Minister & the Executive
10.1The Executive
10.2Ministerial Responsibility
10.3Prime Minister & the Cabinet
10.3.1Role of the Prime Minister
10.3.2Prime Minister's Powers
10.3.3Limits on the Prime Minister's Powers
10.3.4Role of the Cabinet
10.3.5Prime Minister & Cabinet: Relations
10.3.6Prime Minister & Cabinet: Balance of Power
10.3.7Prime Minister & Cabinet: Case Studies
10.3.8End of Topic Test - PM & Cabinet
10.3.9Top Grade AO3/4 - PM & Cabinet
11Relationships Between Government Branches
11.1The Supreme Court
11.2Parliament & Executive Relations
11.3The European Union & the UK
11.4Sovereignty in the UK Political System
12US Constitution & Federalism
12.1Nature of the US Constitution
12.2Principles of the US Constitution
12.3Federalism
13US Congress
13.1Structure of Congress
13.2Functions of Congress
14US Presidency
14.1Presidential Power
14.2The Presidency
14.3Interpretations & Debates of the US Presidency
15US Supreme Court & Civil Rights
15.1Nature & Role of Supreme Court
15.2Supreme Court Appointment Process
15.3The Supreme Court & Public Policy
15.4Protection of Civil Liberties & Rights
15.5Debates & Interpretations of the Supreme Court
16US Democracy & Participation
16.1Presidential Elections
16.2Electoral College
16.3Electoral Campaigns
16.4Incumbency
16.5Democrats & Republicans
16.6Internal Conflict & Ideology
16.7Support & Demographics
17Comparing Democracies
17.1Theoretical Approaches
17.2UK & USA Similarities & Differences
17.2.1Constitution: Nature
17.2.2Constitution: Provisions & Principles
17.2.3Federal System & Devolution
17.2.4Legislative: Lower Houses of Government
17.2.5Legislative: Upper Houses of Government
17.2.6Legislative: Powers & Functions
17.2.7Executive
17.2.8Supreme Court
17.2.9Supreme Court: Judicial Independence
17.2.10Civil Rights
17.2.11Civil Rights: Interest Groups
17.2.12Party Systems & Parties
17.2.13Campaign Finance & Pressure Groups
17.2.14End of Topic Test - Comparing UK & US
17.2.15Application Questions - UK & USA
18Feminism
18.1Feminism: Core Ideas & Principles
18.2Different Types of Feminism
19Nationalism
19.1Nationalism: Core Ideas & Principles
19.2Different Types of Nationalism
Jump to other topics
1Democracy & Participation
1.1Representative & Direct Democracy
1.2Wider Franchise & Suffrage
1.3Pressure Groups & Other Influences
2Political Parties
2.1How Political Parties Work
2.2Established Political Parties
2.3Emerging & Minor Political Parties
3Electoral Systems
3.1Different Electoral Systems
3.2Referendums & How They Are Used
4Voting Behaviour & the Media
5Conservatism
5.1Conservatism: Core Ideas & Principles
5.2Conservatism: Differing Views & Tensions
6Liberalism
6.1Liberalism: Core Ideas & Principles
6.2Differing Views And Tensions Within Liberalism
7Socialism
7.1Socialism: Core Ideas & Principles
7.2Differing Views And Tensions Within Socialism
8The UK Constitution
8.1Nature & Sources of UK Constitution
8.2Constitutional Change since 1997
8.3Role & Powers of Devolved UK Bodies
9The UK Parliament
9.1Houses of Parliament
9.2Comparative Powers
9.3Legislative Process
10The Prime Minister & the Executive
10.1The Executive
10.2Ministerial Responsibility
10.3Prime Minister & the Cabinet
10.3.1Role of the Prime Minister
10.3.2Prime Minister's Powers
10.3.3Limits on the Prime Minister's Powers
10.3.4Role of the Cabinet
10.3.5Prime Minister & Cabinet: Relations
10.3.6Prime Minister & Cabinet: Balance of Power
10.3.7Prime Minister & Cabinet: Case Studies
10.3.8End of Topic Test - PM & Cabinet
10.3.9Top Grade AO3/4 - PM & Cabinet
11Relationships Between Government Branches
11.1The Supreme Court
11.2Parliament & Executive Relations
11.3The European Union & the UK
11.4Sovereignty in the UK Political System
12US Constitution & Federalism
12.1Nature of the US Constitution
12.2Principles of the US Constitution
12.3Federalism
13US Congress
13.1Structure of Congress
13.2Functions of Congress
14US Presidency
14.1Presidential Power
14.2The Presidency
14.3Interpretations & Debates of the US Presidency
15US Supreme Court & Civil Rights
15.1Nature & Role of Supreme Court
15.2Supreme Court Appointment Process
15.3The Supreme Court & Public Policy
15.4Protection of Civil Liberties & Rights
15.5Debates & Interpretations of the Supreme Court
16US Democracy & Participation
16.1Presidential Elections
16.2Electoral College
16.3Electoral Campaigns
16.4Incumbency
16.5Democrats & Republicans
16.6Internal Conflict & Ideology
16.7Support & Demographics
17Comparing Democracies
17.1Theoretical Approaches
17.2UK & USA Similarities & Differences
17.2.1Constitution: Nature
17.2.2Constitution: Provisions & Principles
17.2.3Federal System & Devolution
17.2.4Legislative: Lower Houses of Government
17.2.5Legislative: Upper Houses of Government
17.2.6Legislative: Powers & Functions
17.2.7Executive
17.2.8Supreme Court
17.2.9Supreme Court: Judicial Independence
17.2.10Civil Rights
17.2.11Civil Rights: Interest Groups
17.2.12Party Systems & Parties
17.2.13Campaign Finance & Pressure Groups
17.2.14End of Topic Test - Comparing UK & US
17.2.15Application Questions - UK & USA
18Feminism
18.1Feminism: Core Ideas & Principles
18.2Different Types of Feminism
19Nationalism
19.1Nationalism: Core Ideas & Principles
19.2Different Types of Nationalism
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