Economic Theories of the 19th and Beginning of the 20th Century

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Question 1 Major Points of Classical Liberalism Natural Law and Natural Rights In classical liberalism, individuals believe that there are natural laws. These natural laws may also be considered natural rights. These rights are not created by man, they are discovered. These laws are based upon what is moral and what is not. Thomas Paine described these rights in his book Rights of Man, and how these rights were being violated by the monarchies and hereditary governments. These laws include the idea that all men are created equal. These natural rights were used to help create the Declaration of the Rights of Man and of the Citizen. Private Property This is the idea that individuals can own their own assets. The state should not own any means of production. Everything that can be privately owned should be. Idea of Spontaneous Order This is the idea that order will come naturally. To create order we do not need to plan. This is emphasized in the idea that if individuals work in their self-interest, then the common good will also be benefitting. During the Scottish Enlightenment, philosophers began to develop the idea of the market as a spontaneous order. Adam Ferguson’s “Essay on the History of Civil Society” stressed the importance of spontaneous order in our world. Free Markets Markets that are driven by supply and demand are considered to be free. To be under the influence of supply and demand, government must not intervene. After the industrial revolution, business owners stressed this idea. Adam Smith developed the ideas behind supply and demand. Limited Government Just as classical liberalists did not want government intervention in the market, they do not want it affecting their life in other major ways. As defi... ... middle of paper ... WGBH. (1998). Commanding heights: The battle for the world economy [DVD]. Fielding, J., Christison, M., Harding, C., Meston, J., Smith, T., & Zook, D. (2009). Perspectives on ideology. Don Mills, Ontario: Oxford University Press. Conservative Party of Canada, (2011). Here for canada. Retrieved from website: Kelly, P. (n.d.). Retrieved from Image References BYU-Idaho (n.d.) . The Business Cycle. Retrieved from Perspectives on Ideology (n.d.) . Anticipated Result of Government Intervention. Harper College (n.d.) . The Circular Flow Model of Capitlaism. Retrieved from

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