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Video: Liberalism: the role of the state in economic life, ideas and problems
2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:43
As an ideological trend, liberalism began to take shape in the 19th century. The social base of this direction were representatives of the bourgeoisie and the middle class. There are many definitions of the term "liberalism". The name comes from the Latin word liberalis, which translates as "free". In simple terms, liberalism is an ideology proclaiming the introduction of democratic principles into political life. What else does liberalism offer? The role of the state in the economic life of the country is reduced to almost nothing.
The role of the state in the economy
Protection of public order and security - this is the function for the state provides for liberalism. The role of the state in economic life is minimal, it assumes complete non-intervention. The market develops independently, based on free competition. The financial situation, the availability of means of subsistence is a problem for each person separately. The state does not interfere in this area in the same way as it does in market processes.
As an exception, we can cite the new liberalism. The role of the state in economic life, according to the ideas of neoliberalism, is to prevent the development of monopoly in the market. It is also the responsibility of the state to support the poor with the help of special programs.
Ideology of liberalism
The main ideas of liberalism were formulated in the 19th century. The individual person occupies a key place in the liberal ideology.
The main place is occupied by the idea that human life is an absolute and unshakable value. Every person from the moment of birth receives inviolable, natural rights, such as the right to life, private property and freedom.
The most important value that a person has is his personal freedom. It can only be limited by law. Everyone is responsible for their own actions and deeds.
Tolerant attitude towards religion and moral principles of the individual.
The functions of the state are reduced to a minimum. Basically, its task is to ensure the equality of all before the law. Relations between the state apparatus and society are of a contractual nature. Liberalism also does not provide for the role of the state in economic life, reducing it to a minimum.
Problems of liberal ideology
The problems of liberalism largely stem from the very principles of this ideology. Reducing the role of the state in the economic life of society leads to social stratification of citizens - the poor appear, as well assuper rich. Weak participants in the market process are absorbed, forced out by stronger ones. As a result, the state has to intervene in these processes. This idea contributed to the emergence of a new trend of liberal thought - neoliberalism, revising some of the foundations of classical liberalism. Neoliberalism expands the functions of the state - it prevents monopolies from capturing the market, creates social programs to help the poor, guarantees that every citizen is provided with his rights to work, education, pension and others.
Today, neoliberalism is the basis for building the rule of law.
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