Classical Liberalism and the Notion of Freedom
Classical liberalism is a philosophy committed to the ideals of limited government, constitutionalism, rule of law, due process, and liberty of individuals. These liberties include freedom of religion, speech, press, assembly, and free markets. Classical liberalism developed over the course of the 1800s in the United States and Britain and drew upon Enlightenment sources (particularly the works of John Locke, Thomas Hobbes, and Adam Smith). It was an intellectual response to the Industrial Revolution and the problems associated with urbanization.
Adam Smith
Adam Smith was a Scottish moral philosopher, pioneer of political economy, and a key figure in the Scottish Enlightenment.
Core Principles
Human Nature
Classical liberalism places a particular emphasis on the sovereignty of the individual and considers property rights an essential component of individual liberty. Later in 19th-century political theory, this would encourage "laissez-faire" public policy that would not heavily interfere in commerce or industry. Most classical liberals argued that humans are calculating, egoistic creatures, motivated solely by pain and pleasure; humans make decisions intended to maximize pleasure and minimize pain, while in the absence of pain or pleasure, they become inert. Hence, classical liberals believed that individuals should be free to pursue their self-interest without societal control or restraint.
Classical liberalism determined that individuals should be free to obtain work from the highest-paying employers. In a free market, labor and capital would therefore receive the greatest possible reward, while production would be organized efficiently to meet consumer demand. Classical liberals also saw poor urban conditions as inevitable, and therefore opposed any income or wealth redistribution.
The Role of Government
Classical liberals agreed with Adam Smith that government had only three essential functions: protection against foreign invaders, protection of citizens from wrongs committed against them by other citizens, and the building and maintaining of public institutions and public works that the private sector could not profitably provide. Classical liberals extended protection of the country to protection of overseas markets through armed intervention. Protection of individuals against wrongs normally meant protection of private property. Public works included a stable currency; standard weights and measures; support of roads, canals, harbors, and railways; and postal and other communications services that facilitated urban and industrial development.
World Peace
Additionally, classical liberals believed that unfettered commerce with other nations would eventually eliminate war and imperial conflicts. Through peaceful, harmonious trade relationships established by private merchants and companies without government interference, mutual national interest and prosperity would derive from commercial exchange rather than imperial territorial acquisition (which liberals saw as the root of all wars). World peace, for classical liberals, was a real possibility if national governments would allow interdependent global commercial relationships to form.