Classical liberalism: Encyclopedia II - Classical liberalism - Origins

Classical liberalism - Origins

Classical liberalism is a political and economic philosophy. With roots in ancient Greek and medieval thought, it received an early expression in the 16th century by the School of Salamanca and its classic formulation in the Enlightenment tradition. The Wealth of Nations (1776) by Scottish philosopher Adam Smith is one of the classic works that rejects the philosophy of mercantilism, which advocated state interventionism in the economy and protectionism. The classical liberals saw mercantalism as enriching privileged elites at the expense of well being of the populace. Another early expression is the tradition of a Nordic school of liberalism set in motion by a Finnish parliamentarian Anders Chydenius. Classical liberalism tries to circumscribe the limits of political power and to define and support individual liberty and private property. The phrase is often used as a means of delineating the older philosophy called liberalism from modern liberalism, in order to avoid semantic confusion.

Classic Liberalism is close to 18th century Liberalism. The Wealth of Nations (1776) by Adam Smith is considered one of the classic foundations of liberalism. While Adam Smith provides an explanation of liberalism and economics, the legal and philosophical understanding originates with scholars like John Locke and evolves through Thomas Jefferson and James Madison. Immanuel Kant, in the Perpetual Peace, creates an international liberal framework to foster a sustainable world peace.

The term "liberal" derived from this time period (generally the 18th and 19th century) with its origination stemming from the belief in individual freedom, economic freedom (including free markets), and limited representative government. This original understanding of the word "liberal" carries the same meaning in a few countries, but in most countries the meaning and ideology behind liberalism differ to certain degrees (e.g. social security, tariffs, intervention and regulation into the economy, wage and price controls) from its meaning in the eighteenth century. In many countries liberalism holds a position between classical liberalism and American liberalism. Only a few major parties adhere to classical liberalism, most of the liberal parties accept limited government intervention in economics.

Classic Liberals include all original liberals such as John Locke, Adam Smith, David Ricardo, Thomas Jefferson, James Madison, John Stuart Mill with his work On Liberty, and even more modern liberals such as Von Mises, Hayek, and Milton Friedman. Classical liberal institutions include the Frasier Institute (Canada), The Hoover Institution (Stanford University), and The Cato Institute to name a few.

In Hayek's book The Constitution of Liberty, in the chapter, "Why I am not a Conservative" Hayek tells us that he was not a conservative because he was in fact a liberal; and had refused to give up that label. In the United States the term liberal had changed meaning, and according to Hayek this was because Franklin D Roosevelt had been labeled a socialist and a leftist because of his New Deal Policies. Fearing the consequences of that label, FDR called himself a Liberal instead. Since that day, Liberal in the United States has had a different meaning from the orginal, 18th and 19th century meaning of the word. People who stayed close to this orginal meaning label themselves often "Classic Liberal", "Classical Liberal" or "Libertarian" to avoid confusion (especially in America ).

Adapted from the Wikipedia article "Origins", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki