Social: Responding to Classical Liberalism Review notes

Social‌‌30-1‌ Name:‌‌________________‌
Chapter‌‌4:‌‌(Notes‌‌and‌‌Questions)‌ Date:‌‌_________________‌

Responding‌‌to‌‌Classical‌‌Liberalism‌‌(P.‌‌128-163)‌
1. Classical‌ ‌liberalism‌ ‌and‌ ‌modern‌ ‌liberalism‌ ‌have‌ ‌vastly‌ ‌different‌ ‌beliefs‌ ‌and‌ ‌values.‌ Classical‌
liberalism‌ is‌ ‌about‌ ‌freedom‌ ‌to‌ ‌buy‌ ‌and‌ ‌sell,‌ ‌to‌ ‌do‌ ‌as‌ ‌you‌ ‌wish‌ ‌economically,‌ ‌with‌ ‌no‌ ‌government‌
interference‌.‌ Modern‌ ‌liberalism‌ ‌is‌ ‌about‌ ‌a‌ ‌lot‌ ‌of‌ government‌ ‌interference‌ to‌ ‌bring‌ ‌about‌ ‌more‌
equality‌‌and‌‌lessen‌‌the‌‌‌injustices‌‌of‌‌capitalism‌‌(classical‌‌liberalism).‌
2. Many‌ ‌saw‌ ‌the‌ ‌“e‌xploitation‌”‌ ‌built‌ ‌into‌‌classical‌‌liberalism‌‌(exploiting‌‌the‌‌many‌‌for‌‌the‌‌benefit‌‌of‌‌the‌
few)‌ ‌as‌ ‌an‌ ‌evil‌ ‌that‌ ‌needed‌ ‌to‌ ‌be‌ ‌destroyed.‌ Socialists‌‌(modern‌‌liberals)‌wanted‌‌to‌‌use‌‌government‌
regulation‌‌(in‌‌a‌‌democratic‌‌system)‌‌to‌control‌and/or‌‌eliminate‌‌the‌abuses‌‌of‌‌capitalism.‌ Communists‌
(Marxists),‌ ‌on‌ ‌the‌ ‌other‌ ‌hand,‌ ‌believed‌ ‌that‌ ‌violent‌ revolution‌ ‌would‌ ‌be‌ ‌necessary‌ ‌to‌ ‌get‌ ‌rid‌ ‌of‌ ‌the‌
capitalistic‌‌exploiters‌‌‌(as‌‌they‌‌wouldn’t‌‌give‌‌up‌‌their‌‌wealth‌‌without‌‌a‌‌fight).‌
3. During‌‌the‌Industrial‌‌Revolution‌‌in‌‌places‌‌like‌‌Great‌‌Britain‌‌and‌‌the‌‌United‌‌States,‌‌the‌‌new‌‌ideology‌
of‌laissez-faire‌‌capitalism‌‌was‌‌primarily‌‌concerned‌‌with‌‌industrial‌‌efficiency‌‌and‌‌the‌‌accumulation‌‌of‌
wealth.‌ ‌Society,‌ ‌which‌ ‌had‌ ‌been‌ ‌based‌ ‌on‌‌agriculture‌‌for‌‌hundreds‌‌of‌‌years‌‌(landed‌‌classes‌‌and‌‌the‌
feudal‌‌system),‌‌interventionist‌‌governments,‌‌and‌‌absolute‌‌Kings‌‌had‌‌disappeared.‌
4. Because‌‌early‌‌capitalists‌‌believed‌‌that‌‌decent‌‌wages‌‌and‌‌working‌‌conditions‌‌did‌‌not‌‌lead‌‌to‌‌increased‌
efficiency‌‌(or‌‌profits),‌‌these‌‌things‌‌were‌‌not‌‌considered‌‌as‌‌necessary.‌ ‌Government‌‌was‌‌not‌‌prepared‌‌to‌
help‌ ‌the‌ ‌poor‌ ‌workers‌ ‌because‌ ‌the‌ ‌economy‌ ‌was‌ ‌booming‌ ‌and‌ ‌the‌ ‌capitalists‌ ‌in‌ ‌the‌ House‌ ‌of‌
Commons‌‌(Britain)‌‌or‌Congress‌(the‌‌United‌‌States)‌‌did‌‌not‌‌want‌‌to‌‌alter‌‌the‌‌self-regulating‌‌system‌‌of‌
the‌‌massive‌‌amounts‌‌of‌‌money‌‌they‌‌were‌‌making.‌
5. Because‌ ‌of‌ the‌ ‌abuses‌ ‌of‌ ‌capitalism‌ ‌(unsafe‌ ‌conditions,‌ ‌poor‌ ‌wages,‌ ‌no‌ ‌job‌ ‌or‌ ‌income‌ ‌security,‌
pollution,‌‌child‌‌labor,‌‌long‌‌hours,‌‌etc.),‌‌opponents‌of‌laissez-faire‌‌capitalism‌‌(classical‌‌liberalism‌)‌‌were‌
many:‌
a. The‌ ‌Luddites‌‌-‌‌destroyed‌‌machinery,‌‌had‌‌specialized‌‌jobs‌‌in‌‌the‌‌trades‌‌that‌‌were‌‌stolen‌
by‌ ‌the‌ ‌new‌ ‌factory‌‌system.‌Early‌‌1800s.‌‌Formed‌‌a‌‌protest‌‌movement,‌‌destroyed‌‌machinery.‌
Inspired‌‌by‌‌Ned‌‌Ludd.‌‌Government‌‌declared‌‌machine‌‌breaking‌‌a‌‌crime‌
b. Chartism‌ working-class‌ ‌movement‌ ‌focusing‌ ‌on‌ ‌political‌ ‌and‌ ‌social‌ ‌reform.‌ ‌Focused‌ ‌on‌ ‌six‌
essential‌‌rules‌‌they‌‌wished‌‌to‌‌establish‌‌in‌‌government.‌‌Right‌‌to‌‌vote‌‌for‌‌working‌‌class.‌
c. Socialism‌ ‌socialist‌ ‌ideology‌ ‌included‌ ‌government‌ ‌intervention‌ ‌in‌ ‌the‌ ‌economy,‌ ‌publicly‌
controlled‌‌resources,‌‌PRINCE,‌‌economic‌‌equality‌‌among‌‌citizens‌
i. Utopian‌‌socialism-‌‌‌“New‌‌Lanark”‌‌created‌‌by‌‌Robert‌‌Owen‌
d. Marxism‌‌-Communism/Scientific‌‌Socialism‌Based‌‌on‌‌evolving‌‌class‌‌warfare.‌‌Violent‌‌change‌
is‌ ‌nessecary‌ ‌to‌ ‌bring‌ ‌public‌ ‌property‌ ‌and‌ ‌nationalized‌ ‌industry.‌ ‌Appeased‌ ‌to‌ ‌working‌ ‌class‌
during‌‌the‌‌industrial‌‌age.‌
e. Classical‌ ‌Conservatism‌ Only‌ ‌those‌ ‌educated‌ ‌and‌ ‌understanding‌ ‌should‌ ‌have‌ ‌a‌ ‌say‌ ‌in‌
government.‌‌Tyranny‌‌is‌‌unacceptable,‌‌“general‌‌will‌‌of‌‌the‌‌people”‌‌is‌‌misguided.‌
6. The‌response‌of‌‌the‌‌laissez-faire‌‌capitalists‌‌(and‌‌the‌‌philosophy‌‌of‌‌classical‌‌liberalism)‌‌to‌‌the‌‌protests,‌
unrest,‌‌civil‌‌disobedience,‌‌and‌‌even‌‌revolution‌‌was:‌
a. Welfare‌‌capitalism‌A‌‌classical‌‌liberal‌‌economic‌‌system‌‌with‌‌government‌‌that‌‌grants‌‌protection‌
to‌‌workers‌‌with‌‌min.‌‌wage,‌‌limited‌‌work‌‌hours,‌‌and‌‌features‌‌of‌‌a‌‌social‌‌safety‌‌net.‌Capitalists‌
recognize‌ ‌they‌ ‌need‌ ‌to‌ ‌consider‌ ‌rights‌ ‌of‌ ‌workers.‌ ‌Tried‌ ‌to‌ ‌prevent‌ ‌worker’s‌ ‌unions‌ ‌and‌
government‌‌actions‌‌of‌‌social‌‌programs.‌
i. capitalists‌‌did‌‌not‌‌give‌‌way‌‌easily.‌‌Teddy‌‌Roosevelt‌‌(‌‌a‌‌reformer,‌‌desired‌‌to‌‌“soften‌‌the‌
edges”‌ ‌of‌ ‌laissez-faire‌ ‌capitalism).‌ ‌Mine‌ ‌owners‌ ‌refused‌ ‌to‌‌meet‌‌the‌‌demands‌‌of‌‌their‌
worker‌ ‌unions,‌ ‌so‌ ‌Roosevelt‌ ‌threatened‌ ‌the‌ ‌army‌‌against‌‌the‌‌owners.‌‌Called‌‌a‌‌square‌
deal‌‌“Square‌‌deal”‌

, b. The‌‌Welfare‌‌State‌The‌‌great‌‌depression‌‌moved‌‌welfare‌‌capitalism‌‌into‌‌the‌‌welfare‌‌state.‌‌The‌
existing‌‌political‌‌structure‌‌failed.‌‌Modern‌‌Liberalism‌‌was‌‌needed‌‌by‌‌the‌‌people.‌
c. And‌ ‌Keynsianism‌ ‌(the‌ ‌ideas‌ ‌of‌ ‌John‌‌Maynard‌‌Keynes)‌Classical‌‌Liberal‌‌economics‌‌were‌
based‌ ‌on‌ ‌error.‌ ‌Balance‌ ‌between‌ ‌supply‌ ‌and‌ ‌demand‌ ‌would‌ ‌not‌ ‌necessarily‌ ‌result‌ ‌in‌ ‌full‌
employment.‌‌Periods‌‌of‌‌inflation‌
i. inflationary:‌‌prices‌‌rise,‌‌companies‌‌shut‌‌down,‌
7. Socialist‌ ‌thought‌ ‌ranged‌ ‌from‌ ‌moderate‌ ‌and‌ democratic‌ ‌socialist‌ ‌reform‌ ‌to‌ radical‌ ‌revolutionary‌
Marxism‌.‌ ‌All‌‌socialists‌‌agreed‌‌on‌‌the‌‌following‌‌beliefs‌‌and‌‌values:‌
a. Private‌‌ownership‌‌of‌‌the‌‌means‌‌of‌‌production‌‌permits‌‌exploitation‌
b. The‌‌state‌‌should‌‌direct‌‌the‌‌economy‌‌to‌‌achieve‌‌economic‌‌equality‌‌for‌‌all‌‌citizens‌
c. Society‌‌should‌‌be‌‌classless.‌
8. As‌ ‌seen‌ ‌in‌ ‌point‌ ‌#6‌ ‌above,‌ ‌classical‌ ‌liberals‌ ‌gradually‌ ‌came‌ ‌to‌ ‌see‌ ‌the‌ ‌merits‌ ‌of‌ ‌some‌ ‌of‌ ‌their‌
opponents’‌‌views‌‌and‌‌modified‌‌the‌‌practical‌‌applications‌‌of‌‌some‌‌of‌‌their‌‌values‌‌and‌‌beliefs.‌ ‌Classical‌
liberals‌‌would‌‌not‌‌give‌‌up‌‌their‌‌emphasis‌‌on‌individual‌‌rights,‌‌private‌‌property,‌‌economic‌‌freedom,‌
and‌‌the‌‌rule‌‌of‌‌law‌,‌‌but‌‌maybe‌‌now‌‌they‌‌would‌‌be‌‌willing‌‌to‌‌allow‌‌that‌‌some‌‌collective‌‌rights‌‌were‌
necessary‌‌as‌‌well,‌‌maybe‌‌a‌‌little‌‌government‌‌intervention‌‌was‌‌needed,‌‌maybe‌‌their‌‌needed‌‌to‌‌be‌‌a‌‌few‌
regulations‌‌on‌‌capitalists,‌‌and‌‌maybe‌‌some‌‌people‌‌needed‌‌a‌‌helping‌‌hand.‌


9. Probably‌‌the‌‌most‌‌well‌‌used‌‌response‌‌to‌‌the‌‌abuses‌‌and‌‌weaknesses‌‌of‌‌capitalism‌‌were‌‌the‌‌theories‌‌of‌
John‌‌Maynard‌‌Keynes‌.‌‌One‌‌of‌‌the‌‌first‌‌converts‌‌to‌‌Keynesian‌‌thought‌‌was‌Franklin‌‌D.‌‌Roosevelt‌,‌
the‌ ‌president‌ ‌of‌ ‌the‌ ‌United‌ ‌States‌ ‌during‌ ‌the‌ Great‌ ‌Depression‌.‌ ‌He‌ ‌implemented‌ ‌massive‌ ‌public‌
works‌‌programs‌‌to‌‌put‌‌people‌‌to‌‌work‌‌and‌‌try‌‌to‌‌stimulate‌‌the‌‌economy.‌ ‌He‌‌called‌‌it‌‌the‌New‌‌Deal‌.‌
He‌‌also‌‌introduced‌‌regulation‌‌in‌‌the‌‌banking‌‌system‌‌and‌‌government‌‌intervention‌‌in‌‌the‌‌development‌
of‌‌resources‌‌and‌‌electrical‌‌power.‌ ‌The‌‌New‌‌Deal‌‌represented‌‌the‌‌beginning‌‌of‌‌the‌‌shift‌‌to‌‌the‌welfare‌
state‌ ‌and‌ ‌the‌ mixed‌‌economy‌.‌ ‌By‌‌the‌‌1950’s‌‌and‌‌1960’s,‌‌the‌‌welfare‌‌state‌‌and‌‌the‌‌mixed‌‌economy‌
was‌‌a‌‌reality‌‌in‌‌most‌‌democratic‌‌countries‌‌including‌‌Canada.‌

Some‌‌Questions‌
(put‌‌your‌‌answers‌‌on‌‌the‌‌bottom‌‌of‌‌this‌‌page‌‌and‌‌the‌‌next‌‌page)‌

1. Is‌‌child‌‌labor‌‌like‌‌that‌‌depicted‌‌in‌‌figure‌‌4-1‌‌(P.‌‌128‌‌and‌‌the‌‌top‌‌excerpt‌‌on‌‌P.‌‌129)‌‌still‌‌present‌‌in‌‌the‌
world‌‌today?‌ ‌Where?‌‌Can‌‌you‌‌give‌‌a‌‌few‌‌examples?‌‌_____________________________________‌
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2. How‌‌did‌‌the‌‌Luddites‌‌‌protest‌‌against‌‌the‌‌Industrial‌‌Revolution‌‌and‌‌poor‌‌working‌‌conditions?‌ ‌Why?‌
(P.‌‌131-132)‌‌______________________________________________________________________‌
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