Liberalism was an economic, political and social doctrine that emerged in Europe in the 18th century against mercantilism and state intervention in the economy.
Liberalism was dominant in economics and politics during the 19th century and fell into disrepute after World War I.
Political Liberalism
Political liberalism initially consisted of criticizing the divine origin of power. Later, he fought to give citizens greater political decision-making power, such as choosing their representatives.
John Locke
The foundations of political liberalism were launched by the English philosopher, representative of the Enlightenment, John Locke (1632-1704), in his work “Second Treatise on Civil Government ”.
In it, he denied the divine origin of power and argued that citizens had a natural right to liberty, private property, and resistance against tyrannical governments.
According to Locke, power came from citizens and not from God. Therefore, he proposed the replacement of absolutism by a “contractual” relationship between governors, with the bases of this relationship being established by a set of written laws, the Constitution.
Economic Liberalism
Economic liberalism defends the non-intervention of the State in the economy and the ability of the market to regulate itself. Let's take a look at some of the most important authors:
Adam Smith
Economic liberalism gained definitive contours with the Scottish economist Adam Smith (1723-1790), considered its creator.
In his work “The Wealth of Nations ”, showed the division of labor as an essential element for the growth of production and the market.
This model depended on free competition, which would force the business community to expand production, seeking new techniques, increasing product quality and lowering production costs as much as possible.
This would favor the natural law of supply and demand, enabling general economic success and prosperity for all. In this process, the State should not intervene, leaving the market to regulate itself naturally.
David Ricardo
After Adam Smith, the English economist, David Ricardo (1772-1823) was the greatest representative of the liberal school also called classical, which originated in England.
In the work “Principles of Political Economy and Taxation ”, Ricardo developed the labor theory of value. In it, he defended the iron law of wages, according to which the price of labor power would always be equivalent to the minimum necessary for the subsistence of the worker.
In opposition to Mercantilism and due to the Industrial Revolution, Classical Liberalism solidifies in the 19th century, constituting the predominant ideology in Western society.
With the rapid expansion of capitalism, Liberalism took different forms, valued differently according to each country.
In Brazil, one of the parties that most defended liberalism was the National Democratic Union, which emerged in 1945.
To learn more :
- Industrial Revolution
- What is Politics?
- Welfare State
- Anarchism