Liberalism: the role of the state in economic life, ideas and problems

As for the ideological liberalism became formalized in the nineteenth century. The social base of this trend was the 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”. Speaking in simple words, liberalism-an ideology that proclaims the introduction of democratic principles in political life. What else is liberalism? The role of the state in the economic life of the country is reduced to almost zero.

The role of the state in the economy

The Protection of public order and security – this is a function of the state provides liberalism. The role of the state in economic life is minimal, it is assumed non-interference. The market is based on free competition. Financial situation, the availability of a livelihood – the problem separately for each person. In the state likewise does not intervene, as in market processes.

As an exception, you can lead a new liberalism. The role of the state in economic life, according to the ideas of neoliberalism, is to prevent the development of monopolies in the market. It is also the responsibility of the state is charged with the support of the poor through special programs.

The Ideology of liberalism

The Basic ideas of liberalism were formulated in the nineteenth century. A key place in liberal ideology is a particular man.

The Main place is the idea that human life – it is absolute and unwavering value. Everyone from birth gets inviolable natural rights such as the right to life, private property and freedom.

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The Most important value, which has people – it's his personal freedom. It can only be restricted by law. Everyone is responsible for their actions and deeds.

Tolerant attitude to religion and moral principles of the individual.

The functions of the state are minimized. Basically his task – the equality of all before the law. The relationship between the state apparatus and society are of a contractual nature. Also provides liberalism the role of government in economic life, by reducing it to a minimum.

The Problem of liberal ideology

The Problems of liberalism largely derive from the principles of this ideology. The reduced role of the state in the economic life of society leads to social stratification of citizens – there are the poor and the super rich. Weak participants of the market process are absorbed, replaced by more strong. In the end, the state has to intervene in these processes. This idea contributed to the new currents of liberal thought-neoliberalism, reviewing some of the basics of classical liberalism. Neoliberalism extends the functions of the state – it prevents the seizure of market monopolies creates social programs to help low-income people, ensure each citizen his right to employment, education, pension and others.

Today, neoliberalism is the basis for the rule of law.