To What Extent Do Liberals Agree Over The Economy

Question 1

Agreements: role of the state

Answer 1

The state should play a role in protecting individual liberty and property within the economy by creating a stable framework e,g enforcing contracts
But shouldn’t have a very large role in interfering with the economy as it could risk upsetting the balance that society has created.

Question 2

Disagreements: role of the state

Answer 2

Classical: laissez fair economy; free market w no state intervention, state role is to only preserve order - john lock as he supported a limited gov existing primarily to safeguard rights
Modern: Keynesian ; active gov intervention through fiscal policy to manage demand and reduce unemployment

Question 3

Agreements: freedom

Answer 3

All liberals believe that individuals should have economic freedom, ability to make their own choices about work and trade w/o interference essential to liberty

Question 4

Disagreements: freedom

Answer 4

Classical: negative , freedom from the state economically through free markets and low taxes
Modern: positive, freedom to do what u want w gov interference to regulate processes and ensure fair access and opportunity- john Rawls , the state should redistribute resources 4 equality

Question 5

Agreements: rationality

Answer 5

Humans are rational, thinking beings that can make economic descisoons that fit their best interests , justifies trusting people to participate freely in economy

Question 6

Disagreements: rationality

Answer 6

Classical: humans are rational and can make economic descisons independently, market should be free from interference
Modern: also believes in rationality but social conditions e.g poverty can limit ability to be rational so requires state intervention to regulate these conditions
John Stuart mill acts as a bridge between these, favours economic freedom but also acknowledges the idea of needing some state intervention to promote equality and fairness