"Whilst opposing excessive state power, many liberals today favour greater regulation of the economy.’ Discuss.

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  • Created on: 30-05-18 14:54
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  • ‘Whilst opposing excessive state power, many liberals today favour greater regulation of the economy.’ Discuss.
    • Many liberals today do not want state regulation in the economy
      • Adam Smith advocated for a free market run by free individuals, only controlled by the invisible hand of market forces.
        • Adam Smith Institute is more associated with Conservatism and the New Right
        • "the freer the market, the freer the people"
      • Privatisation of Royal Mail under Nick Clegg coalition
    • Many liberals today favour state regulation of the economy
      • theres considerable support which Neo-Keynesianism enjoys among most contemporary liberals
      • Excessive inequalities arose form capitalism so Lloyd George and Beveridge implemented social liberal policies that involved state intervention such as welfare.
      • John Maynard Keynes wanted to "save capitalism" with a humane version of it in which the govt had a macroeconomic role in providing full employment.
      • Contemporary liberalism appears to be extremely critical of unregulated markets in the light of the banking crisis which began in 2008
        • led to declining consumer confidence and rising unemployment, allied to poor growth prospects.
      • A core liberal value is opposition to excessive state power as, as JS Mill and Locke argued. State intervention limits human innovation and self fulfilment.
      • Greater regulation in the economy is supported by social liberals as they believe capitalism in the 19th century created excessive inequality
      • Classical liberalism is against state intervention in the economy but this is more associated with the New Right now.
    • All liberals today oppose excessive state power because
      • Excessive state power stifles creativity.
      • Therefore supportive of devolution e.g. Scottish Independence Referendum under coalition.
      • Supportive of joining transnational organisations such as the EU and UN in order to hold govt to account and protect civil liberties.
      • Statement is true as social liberalism has dominated contemporaryliberalism, liberals are concerned with rising inequality caused by excessively free markets


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