Political Ideologies: Liberalism - Distinguish between economic liberalism and social liberalism

Here is an essay I wrote while studying liberalism in 2009

Robyn, UK

Distinguish between economic liberalism and social liberalism

The abandonment of economic liberalism and the doctrine of laissez-faire occurred because of the increasing complexity of industrial capitalist economies and their inability to guarantee general prosperity if left to their own devices. The Great Depression sparked by the Wall Street Crash of 1929 was the most dramatic demonstration of the failure of the free market.

The UK philosopher T. Green believed the unrestrained pursuit of profit had given rise to new forms of poverty and injustice. The economic liberty of the few had blighted the life chances of the many. Green challenged the classical liberal notion of negative freedom as economic freedom can lead to exploitation. Therefore freedom of choice in the marketplace is an inadequate conception of individual freedom. Green proposed the idea of positive freedom which recognised liberty may also be threatened by social disadvantage and inequality. This is implied a revised view of the state and led to a modern liberal belief in social liberalism.

Economic liberalism reflected the classic liberal belief in a minimal state as Adam Smith argued that the economy works best when left alone by government. Social liberalism on the other hand believes the state possesses a social responsibility to reduce or remove social disadvantages to create more equal life chances, reflecting the modern liberal belief in personal self-development through freedom.

On the other hand, both social liberalism and economic liberalism are rooted in assumptions about egoism and self-interest and both share a preference for self-reliant individuals who take responsibility of their own lives. The difference is that modern liberals recognise that this can only occur if social conditions are conducive to it and social liberalism provides equality of opportunity through welfarism.

The modern liberal belief in social liberalism reflects the modern liberal idea of ‘helping individuals to help themselves’ whereas the classic liberal belief in economic liberalism reflects a belief in egotistical individualism.