· Classical liberalismoriginated in Great Britain in the eighteenth century. As an ideology, itbecame prominent only in the nineteenth century, that’s why it was called thecentury of classical liberalism. Yet, the initial ideas of liberalism startedforming far before that. It all started during Renaissance in 1400-1600 whenthe awareness of individualism started to grow.
In 1517, the ProtestantRevolution contributed to the development of the ideology, in particular, itwas the starting point of the growing secularism. The Enlightenment in 1700’sstrengthened democratic values. In approximately 1750 Industrial revolutionoccurred in Britain, which changed its economy to a factory-based system. TheRevolution was the origin of the Laissez-Faire Economics, one of the mainconcepts in the classical liberalism. It states that government should notinterfere with economic system, in other words, classical liberalism is characterizedby capitalism with a free market. According to Laissez-Faire Economy,individuals should feel free to make their own decisions, and that people’scompetitiveness will help to improve the state’s wealth and power. It stressesthe importance of human rationality.
Classical Liberalism is an ideology that embracesthe principles of individualism Rule of Law, Rights and Freedoms, PrivateProperty, Economic freedom, Self-interest, and Competition. Liberty essentially means ‘freedom’, thereforeliberalism is an ideology based on freedom. Classical liberalism valuespolitical freedom and a free market economy that has limited governmentintervention within the economy. Modern liberalism is different because itadvocates a greater role for the state in society. · It referred to a reductionof government involvement in the economy· Mercantilism is the ideathat the primary goal of the economy is to strengthen the power and wealth ofthe state.
In order to do so high government regulation is necessary. Laissez-fairereflects the following ideas:· Individuals nee to be given freedom to make theirown decisions. Therefore laissez-faire is contradicting mercantilism. · Individuals’ selfishness and competitiveness willeventually improve their own society