unit 5 liberalism and capitalism Flashcards
(15 cards)
Techno-economic dimension
Economic basis
Agrarian and commercial revolutions → Industrial revolution
Technological discoveries
Higher productivity → surplus capital: excess of accumulated financial resources that can be reinvested in new industries or enterprises → rural exodus
The right to private property
Freedom of the contracting parties
Free market (little interventionism) but laws in defence of competition
)
Capitalism
Capitalism, as an economic system, is depicted as a system of markets in general equilibrium, supported by government interventions designed to correct for market fail
Invisible hand
Each individual, in pursuing his own selfish good, is led unintentionally, as if by an invisible hand, to promote the best good of all.
Socio-political dimension (9)
Freedom of thought and religion:
Freedom of movement, association, expression, and occupation:
Concept of negative freedom: individuals are free to act as they wish unless they infringe on others’ rights.
Citizenship and equal rights: Promotes equality before the law (e.g., no tax exemptions or privileges based on class).
The social contract: (Thinkers: Locke, Rousseau)
Based on the idea of consent, with governance deriving its legitimacy from the governed.
Separation of powers: Divides governance into branches to prevent tyranny (e.g., legislative, executive, judicial).
Rule of Law: Asserts that everyone, including the government, is subject to the law.
State as a guarantee of security: Ensures peace and order through legitimate authority.
Condemnation of slavery and servitude: Rejects systems that undermine human dignity and freedom.
Cultural dimension (J. Calvin, J. Rockefeller)
Protestant Influence
M. Luther - Work as vocation: The idea that work is a divine calling (“Der Beruf ist die Berufung”).
J. Calvin - Predestination and richness as an indicator: Wealth is seen as a sign of being part of the elect (predestined for salvation).
Religious wars → call for tolerance → pluralism: Conflicts led to the acceptance of different beliefs.
Belief in the Individual
Assuming the individual to be a rational being: Foundation for personal responsibility and decision-making.
Culture of effort, competitiveness, and meritocracy: Success is based on hard work, competition, and talent.
Culture of success → “self-made man” (John Rockefeller): Emphasis on achieving greatness through one’s own efforts and skills.
Reinvesting Profits
Capital → Investment → Profit → Reinvestment: A cycle where profits are reinvested to generate more wealth.
Economic austerity: Advocating for a simple, frugal lifestyle.
Stigmatization of the idle: Disdain for laziness or unproductiveness.
Selfishness or “enlightened self-interest” as a virtue: Acting in one’s own interest is considered beneficial to society when guided by reason.
Consequences of the Liberal Revolutions
Overthrow of the Old Regime:
End of absolute monarchies.
Transition from God as the origin of power to secular narratives.
The bourgeoisie becomes the new ruling class.
Abolition of Serfdom (vassals):
Establishment of the concept of citizenship.
From Gemeinschaft (community) to Gesellschaft (association):
Sociological shift described by F. Tönnies.
Development of capitalism:
Elimination of guild powers.
Adoption of “laissez-faire” policies.
Consolidation of the Centralized State:
Continuity between absolute monarchy and liberal revolutions.
Positive Outcomes
Technological Modernization
Periods of High Economic Growth
Abolition of Serfdom
Political Changes
Partial recognition of individuals’ rights and freedom.
Rule of Law and equality before the law.
Introduction of parliamentary systems.
Restricted State powers.
Division of powers.
Negative Outcomes
- Growing inequality
Large deprived urban areas.
Unhealthy industrial suburbs. - Exploitation of the working class
- Social conflicts
Crackdown on the labour movement. - Democratic deficit
- Economic cycles not avoided
Cyclical capitalist crises.
“End of utopia”: the Great Depression (1929). - Selfish, possessive individualism
Social Darwinism (Reading by H. Spencer).
2.Democratic and Social liberalism (early 20th C. to 1939-45)
Enfranchisement of all citizens… and women
Legalisation of left-wing parties and trade unions
Freedom of expression and freedom of press
In a contract, equality between the parties is necessary (hence, need to protect the weaker party)
( 2.Democratic and Social liberalism) Start of labour laws
Right to strike recognised
Prohibition of child labour
Restrictions of working hours
Labour safety legislation
( 2.Democratic and Social liberalism) Intervention in basic social rights
Creation of state-owned schools
Creation of state-owned hospitals
Welfare policy: “poor laws”
- Neoliberalism
Belief in sustained economic growth as the way to achieve progress
Confidence in free markets to allocate resources most efficiently → laissez-faire economics (tax cuts for the wealthy, deregulation, privatization, outsourcing, competition in public services)
Minimal state intervention in economic and social issues (disempowerment of trade unions)
Commitment to free trade and free movement of capital
Competition as defining characteristic of human relations
- Negative freedom
Negative freedom: Freedom from interference
The extent of my negative freedom is determined by how many possible choices lie open to me
Freedom of speech, freedom of assembly, freedom of press, freedom of movement, freedom of religion, electoral rights
UN Covenant on Civil and Political Rights
- Libertarianism
Emphasis on individual freedoms
Skepticism or opposition to authority and state power
Urge the dissolution of all “coercive” social institutions
Left-wing libertarians: - close to anarchism - seek to abolish capitalism - anti-globalization
Right-wing libertarians (especially after mid-20th c. in US):
* Advocate civil liberties
* Natural law
* Free-market capitalism
* Reversal of welfare state (close to neo-liberals but even more anti-regulation and anti-government)
+ Positive freedom
Positive freedom: Freedom to achieve self-realization
Presence of real opportunities, capabilities approach
Right to education, right to an adequate standard of living, right to health, right to social security, labor rights
UN Covenant on Economic, Social and Cultural Rights
