Responding to Classical Liberalism - Mr. Oppedisano's Class ...

Responding to Classical Liberalism - Mr. Oppedisano's Class ...

Responding to Classical Liberalism Chapter 4 Why did ideologies develop in opposition to classical liberalism? How did classical liberalism respond to competing ideologies? How did the concept of equality expand?

Why did ideologies develop in opposition to classical liberalism? Laissez-faire capitalism was primarily concerned with industrial efficiency and the accumulation of wealth These goals were considered more important than equality, workers were viewed as one component of production, not necessarily on par with the wealthy elite Therefore, not all people saw the Industrial Revolution and classical liberalism as positive developments.

There were many protests against the effects of classical liberalism. Not all developed into complete ideologies but nonetheless opposed classical liberalism in some way: Luddites Led by Neil Ludd Textile workers who were being replaced by machines during industrialization broke into

factories and broke machinery in the 1800s This became a movement known as Luddism Chartists Chartism was a working-class movement in Britain that focused on political and social reform. Named after the Peoples Charter of 1838 which had 6 goals:

Universal suffrage for all men over 21 Equal-sized electoral districts Voting by secret ballot And end to the need for property qualifications for Parliament Pay for members of Parliament Annual elections Chartism looked to counter the inequality created by the Industrial Revolution and classical liberalism through the electoral

process. Their actions, like those of the Luddites, led to violence However, their demands were eventually implemented in the Reform Acts of 1867 and 1884 Socialist Ideologies Socialism believes that resources should be controlled by the public for the benefit of

everyone in society and not by private interests for the benefit of private owners and investors Characterized by co-operation and a high degree of state involvement Socialists rejected the lack of equality and humanitarianism in classical liberalism Unlike Luddism and Chartism, forms of socialism became effective ideologies Utopian Socialists The word utopia has come to mean a perfect

world meant to serve as a model for real life Utopians were humanitarians who advocated an end to the appalling conditions of the average worker in the industrial capitalist countries at that time Robert Owen was a well known utopian socialist; he believed the harshness of life under capitalism corrupted human nature Education and improved working conditions could peacefully eradicate the worst aspects of capitalism

Owen developed a model community in New Lanark, Scotland which was the largest cotton-spinning business in Britain It was an education centre with ideal working and living conditions Marxism The term Marxism was coined by a group of French socialists but Karl Marx (1818-1883) proclaimed that he was not a Marxist Marxism is a radical form of socialism often called scientific socialism or communism

According to Marx the only way to overthrow capitalism was a class struggle, a workers revolution, between the proletariat (workers) and the bourgeoisie (owners). Lets look at the chart on the left side of page 136 and the 10 points (pages 136-137) This type of socialism favours the abolition of

private property and the centralization of the means of production in the hands of the state This is a command economy: an economic system based on public (state) ownership of property in which government planners decide which goods to produce, how to produce them, and how they should be distributed (e.g. what price they should be sold at). This is also known as a centrally planned economy, usually found in communist states Read the VOICES section on pages 138 &

139 and answer questions 1-5 Classical Conservatism Classical conservatism was the reaction to classical liberalism Reactionary, also known as conservative or the Right (referring to the political spectrum), refers to an ideology that supports a return to a previous state of affairs. Just as the Luddites reacted to industrialization by breaking machines, others reacted to classical liberalism Edmund Burke believed change should take into

account the past and the future, not just the present, therefore change could not come from the whims of the present generation Edmund Burke He was a reactionary, he reacted to the political issues of the day He believed: Society should be a hierarchy with those best suited to lead at the top because not everyone has equal

abilities. Uninformed people should not have a say in government. Government should be chosen by a select few with special rights and responsibilities Leaders should be humanitarian-care for others Society must be stable and that can only be achieved through law, order, customs, and traditions The Liberal Response Classical liberals gradually came to see the merits of their opponents views and modified some of the beliefs and values Laissez-faire capitalism needed to consider

workers rights and develop a social conscience Factory owners who wanted to avoid the growing demand for labour unions gave workers some special benefits. This is known as welfare capitalism. This also refers to government programs that would provide social safety nets for workers Labour Rights How do workers rights today compare to those in the 19th, or even early 20th century?

President Theodore Roosevelt He wanted capital and labour (profits and workers rights) to be treated fairly He called this the square deal He went on to found a new political party-The

National Progressive Party-whose platform contained this new kind of liberalism, sometimes called progressivism Progressivism Goals: Securing equal suffrage to men and women alike

Conservation of human resources (workers rights, prohibit child labour, etc.) Implement a single national health service Most of this early legislation dealt with workers rights. It failed to address issues such as child poverty, education, housing standards, etc. Also, when WW1 broke out the government needed the support of factory owners for the war effort.

Welfare State The movement from welfare capitalism to a welfare state was spurred by the Great Depression A welfare state is a state in which the economy is capitalist, but the government uses policies that directly or indirectly modify the market forces in order to ensure economic stability. The Great Depression became a catalyst for change, and what began to emerge was modern liberalism as we know it today

Classical Liberalism Focuses on greater individual freedom and economic freedom Modern Liberalism Freedom comes from

equality of opportunity What does this mean? Economic Views Classical Liberalism The government should not interfere in the economy.

If everyone knows that good times are followed by bad times, then it is everyones responsibility to save for the bad times. Welfare State The government

should balance out the highs and lows of the economic cycle by raising/lowering taxes, government spending, and interest rates. Keynes supported this. Business Cycle Before Government Intervention Boom & Bust Cycle Taxes collected by government

Time How Keynes Suggested that Government Intervene Boom & Bust Cycle Taxes collected by government Government spending Time Anticipated Result of Government Intervention

Boom & Bust Cycle Taxes collected by government Government spending Desired Result Time Keynes Demand Side Economics More money in

your pockets: Governments should spend money in a recession to reduce its severity. It should also reduce taxes. Less money in your pockets: Governments

should spend less money in boom times to soften a boom. It should also raise taxes. The New Deal Franklin D. Roosevelt (Theodore Roosevelts distant cousin) was president of the United States from 1933-1945 He was the first to convert to Keynes theories

He implemented massive public works programs to put people to work He called it the New Deal, an echo of Theodore Roosevelts square deal. This represented the beginning of a shift to the welfare state and a mixed economy (capitalism with government intervention) By the 1950s and 60s, the welfare state was reality in most democratic countries,


RECESSION TODAY? The Haymarket Riot Read the Skill Path on pages 151-153 and answer questions1-3. The Extension of Equality How did the concept of equality expand? Labour Standards and Unions

Labour standards reforms were welcomed by workers but these reforms were set up by the government and capitalists. The workers had no say in their development. In the 19th century some workers formed unions so they could bargain collectively and go on strike if needed. Benefits and rights to workers slowly developed In 1948, the UN incorporated two

articles on labour in the Universal Declaration of Human Rights Read articles 23 & 24 on page 155 of your text Universal Suffrage Classical liberalism proclaimed the equality of men, but not all men. Only certain men were considered equal and in most cases

women were not included. In many cases only certain races, economic classes, religious members, etc were permitted to vote while others were excluded. Women werent permitted to vote until much later (depending on the nation) and, in some cases, still do not have the right to vote Equality for Women Feminism- at its simplest, is the belief that

men and women are to be treated equally in every respect. Although classical liberalism provided a way of thinking that allowed feminism to emerge, paradoxically, very few of the classical liberal thinkers were willing to concede any rights to women. Many suffragists argued for womens rights (Mary Wollstonecraft, Nellie McClung, etc). Canada gave women the right to vote nearly 100 years ago but some nations still havent given women the vote

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