Early Modern Liberalism

• What was early modern liberalism in the late 19th and early 20th centuries impacted by?

  Developing economy and society, thinkers began going further than Mill to argue that the state should take a more interventionist approach and actively work to mitigate the disparities and social injustices exacerbated by industrialisation and free market capitalism
• Shift to modern liberalism was also driven by the changing political landscape, with near-universal manhood suffrage and the emergence of socialist parties created a new working class electorate
• Liberal politicians recognised the need to appeal to these working class voters, balancing the traditional liberal emphasis on individual rights with growing concerns about social welfare and economic equity
• Who argued that the realities and inequalities of industrialised society challenged the classical liberal notion of individuals as wholly autonomous agents?

  T.H. Green
• T.H. Green argued that true freedom, or liberty, should be understood as more than just the absence of restraint. Instead, it should encompass the capacity to fulfill one’s potential - a concept that would later be termed as positive liberty
• Green and his contemporaries posited that the state had a moral obligation to create conditions that would enable individuals to realise their potential, thereby achieving true freedom. This included advocating for education, healthcare and social safety nets, setting the stage for the development of the welfare state
• In the early 20th century, modern liberalism began to manifest in tangible political and economic policies, marking a shift towards a more interventionist enabling state 


  A significant milestone in this development was the introduction of the People’s Budget in 1908 by the Liberal government under Asquith and Lloyd George.
• What did the 1908 People‘s Budget do?

  Increased taxes on the wealthy to fund social welfare programs that addressed poverty and health issues among the working class, including pensions for the elderly, unemployment and sickness insurance, and significant investments in education and healthcare
• The People’s Budget 1908 was a radical move that laid the foundational elements of the modern welfare state, actualising modern liberal ideals of social justice and supporting those who were disadvantaged
• How did John Maynard Keynes challenge belief in laissez-fare capitalism in 1920s and 1930s?

  He argued that capitalist economies are prone to cycles of boom and bust, leading to periods of mass unemployment and economic instability
• What did Keynes advocate for instead?

  Active state intervention in managing economies, suggesting that governments should regulate interest rates and increase public spending during economic downturns to stimulate demand and mitigate the effects of recessions
• Keynesianism gained significant traction as a response to the Great Depression, especially in the United States, under Roosevelt’s New Deal policies
• What was included in Roosevelt’s New Deal policies?

  Large scale government spending on public works programs, financial reforms, and social security, fundamentally embodying Keynesian principles
• The New Deal policies represented a dramatic shift in the role of the state in economic affairs, moving away from classical liberalism’s, minimal state intervention to a more active role in economic management as espoused by modern liberalism