Published in: Economics

Classical Liberalism vs Libertarianism Differences and Similarities

Author Blessing Peter Titus

Published on: March 2, 2023

In this article, we shall discuss the differences and similarities that exist between classical liberalism vs libertarianism. In order to do that effectively, let us have a closer look at both classical liberalism and libertarianism.

At the core of classical liberalism is the belief in individual liberty and personal responsibility. This means that individuals should have the freedom to pursue their own interests and goals, as long as they do not harm others. In other words, individuals are seen as autonomous agents who are best suited to make their own decisions about how to live their lives, rather than having those decisions made for them by the government or other institutions. Classical liberals support free markets, which they see as the most efficient and fair way to allocate resources and create wealth.

They posit that when individuals are free to buy and sell goods and services without interference, the market will naturally adjust based on the market forces of supply and demand. This results in the most efficient allocation of resources which creates a system that enhances economic growth and innovation. Another important aspect of classical liberalism is limited government intervention. Classical liberals believe that the role of government should be minimal, limited to protecting individual rights, enforcing contracts, and maintaining public safety. They believe that excessive government intervention can lead to inefficiency, corruption, and the erosion of individual freedoms.

Classical liberals support the rule of law, which entails that all individuals, including those in power, are subject to the same laws and regulations. This prevents the abuse of power by those in positions of authority and helps ensure that everyone is treated fairly and equally. Prominent advocates of classical liberalism in recent times include Milton Friedman, George Stigler, Friedrich Hayek, Larry Arnhart, Thomas Sowell, and Ludwig von Mises.

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Classical liberals generally believe in a smaller role for government in society, with a focus on protecting individual rights and freedoms. They believe that a limited government is necessary to prevent the abuse of power and ensure that individuals are free to pursue their own interests and happiness. They advocate for free markets and minimal government intervention in the economy, arguing that a laissez-faire approach will create the most efficient and prosperous society. Classical liberals believe that individual initiative and competition are the best means of ensuring economic growth and innovation.

In contrast, modern liberals tend to believe in a larger role for government in society, with a focus on promoting social welfare and ensuring that everyone has access to basic needs such as healthcare, education, and a living wage. They tend to believe that some government intervention in the economy is necessary to promote social welfare and ensure that everyone has access to basic needs. They often support progressive taxation, government regulation of the industry, and labor protections to ensure that workers are treated fairly.

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They believe that government intervention in personal and economic affairs is usually counterproductive and can lead to inefficiency, waste, and abuse. This is because individuals may become dependent on the government for their basic necessities such as food, shelter, education, and healthcare and may lose their self-reliance in the process. In terms of economics, just like classical liberals, libertarians believe in the importance of free markets, which they see as the most efficient way to allocate resources and create wealth. They argue that when individuals are free to buy and sell goods and services without interference, the market will naturally adjust to supply and demand, resulting in the most efficient allocation of resources.

This creates a system of economic growth and innovation that benefits everyone. Similar to classical liberals, libertarians argue that the role of government should be minimal, limited to protecting individual rights, enforcing contracts, and maintaining public safety. Libertarians believe that excessive government intervention can lead to inefficiency, corruption, and the erosion of individual freedoms. In addition, libertarians are strong advocates for civil liberties, including free speech, freedom of religion, and the right to privacy. They argue that these rights are essential to a free and democratic society and that any infringement on them by the government is a violation of individual freedom.

Some libertarians take a non-interventionist stance on foreign policy, arguing that the government should avoid unnecessary military interventions and focus on diplomacy and trade. Libertarianism is an important force in American politics and continues to shape debates over issues such as taxation, regulation, and civil liberties. Various schools of libertarian thought offer diverse views on the function of the government and the private sector. They often call for the dissolution or limitation of coercive social institutions. Scholars differentiate between libertarian views along socialist capitalist lines or left-right wings based on the nature of property and capital.

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Liberals tend to believe in a larger role for government in society, arguing that the government should be involved in areas such as social welfare, public education, and healthcare. They also tend to be more willing to accept limits on civil liberties if they are deemed necessary for the public good. Libertarians, on the other hand, tend to believe in a smaller role for government, arguing that the government should not be involved in any aspect of society beyond the protection of individual rights and the enforcement of contracts. They also tend to take a more absolutist approach, arguing that civil rights should never be infringed upon by the government.

Liberals tend to be more supportive of government intervention in the economy, including policies such as progressive taxation, labor protections, and government regulation of industries. Libertarians, on the other hand, tend to believe that free markets should be allowed to operate without government interference, arguing that government intervention in the economy is often counterproductive and can lead to inefficiency, waste, and abuse.

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Liberal vs libertarian chart

The liberal vs libertarian chart is a way of visualizing the different positions on economic and social issues. It is more generally known as the Nolan chart. The Nolan chart is a two-dimensional graph that was created by American political activist David Nolan in 1969. It is designed to visually represent a political spectrum based on two axes: economic and personal freedom.

This chart above is one example of how the liberal vs libertarian chart can be represented. There are many variations, and different people may have different interpretations of where different political ideologies fall on the chart. Generally, however, the top left quadrant represents liberal or progressive positions, where people believe in more government intervention in the economy, but less government intervention in social issues. The bottom left quadrant represents authoritarian or socialist positions, where people believe in more government intervention in both social and economic issues.

The top right quadrant represents classical liberal or libertarian positions, where people believe in less government intervention in both social and economic issues. The bottom right quadrant represents populist, conservative, or nationalist positions, where people believe in less government intervention in the economy, but more government intervention in social issues. It is important to note that not everyone fits neatly into one of these quadrants, and different people may have different beliefs on different issues. Hence the chart is simply a tool for understanding the range of political beliefs and positions that exist among individuals.

Liberal vs libertarian chart variant

Another variant of the liberal vs libertarian chart which is in more common use recently is as shown above. In this variant, the Nolan chart is rotated by -45 degrees such that it rests on its origin. The interpretation of each quadrant is however similar to the earlier example. The horizontal axis represents economic freedom, with positions ranging from left to right. The left end of the spectrum represents socialism or collectivism, while the right end represents free-market capitalism.

The vertical axis represents personal freedom, with positions ranging from top to bottom. The top end of the spectrum represents anarchy or libertarianism, while the bottom end represents authoritarianism. The Nolan chart is often used by libertarians and other advocates of individual liberty to illustrate the differences between various political ideologies and to show the relationship between economic and personal freedom. It is also used as a tool for political self-identification, allowing individuals to plot their own beliefs on the chart and see where they fit in relation to others.

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Classical liberalism vs libertarianism differences

1. Intellectual roots emergence
2. Scope of government intervention
3. Approach to civil liberties
4. Foreign policy
5. Economic policy

Classical liberalism and libertarianism differ in the ways mentioned above. We shall discuss each one of these ways below.

Intellectual roots and emergence

Classical liberalism has its roots in the Enlightenment era, with philosophers such as John Locke and Adam Smith being among its top proponents. Libertarianism on the other hand emerged in the 20th century as a response to perceived excesses of both liberalism and conservatism and draws on a variety of intellectual traditions including classical liberalism, Austrian economics, and anarchism. This is one difference between classical liberalism and libertarianism.

Furthermore, classical liberalism and libertarianism emerged at different times in the world’s history and for different reasons. The former emerged as a response to the oppression that had become prevalent due to monarchies and theocracies while the latter emerged due to the increasing overreaches of progressivism, bureaucracy, and progressivism

Scope of government intervention

One of the main differences between classical liberalism vs libertarianism is the role of government. Classical liberals generally advocate for a limited government that focuses on protecting individual rights and freedoms. They believe that government has a role to play in enforcing contracts but should not be involved in the economy beyond that. Libertarians, on the other hand, advocate for more limited government intervention, arguing that the government should not interfere in any aspect of the economy or society.

Approach to civil liberties

Although both classical liberals and libertarians are strong advocates for civil liberties such as free speech, freedom of religion, and the right to privacy. They tend to differ in their views on civil liberty to a considerable extent. Under classical liberalism, individuals may be more willing to accept limits on civil liberties if they are deemed necessary for the public good. Conversely, under libertarianism, individuals tend to be more absolutist in their approach, arguing that civil rights should never be infringed upon by the government no matter what. This is thus another difference that exists between classical liberalism and libertarianism.

Foreign policy

Another difference between classical liberalism and libertarianism is their views on foreign policy. Classical liberals tend to take a more interventionist approach to foreign policy, advocating for military intervention in cases where it is deemed necessary to protect national security or advance democratic values. Conversely, libertarians, tend to be non-interventionist, arguing that military interventions are often counterproductive and violate the principle of non-aggression and peaceful resolution of conflicts.

Economic policy

When it comes to economic policies, classical liberals and libertarians have differing views as pertain to government regulations. Classical liberals are generally more willing to accept some level of government regulation to prevent market failures that may occur due to the boom and bust cycles associated with free markets. They also accept regulations that ensure a level playing field for all parties such as the rules and regulations that prevent the emergence of monopolies. Libertarians, on the other hand, tend to be more absolutist in their support of laissez-faire capitalism and may oppose any government intervention in the economy.

Read about: A liberal view on the economy

Table: Summary of the difference between classical liberalism vs libertarianism

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Similarities between classical liberalism and libertarianism

1. Both classical liberalism and libertarianism place a high value on individual liberty and personal responsibility. They both believe that individuals should be free to make their own decisions about how to live their lives, without undue interference from the government or other institutions.
2. Classical liberals and libertarians both advocate for free markets, which they see as the most efficient and fair way to allocate resources and create wealth. They argue that when individuals are free to buy and sell goods and services without interference, the market will naturally adjust to supply and demand, resulting in the most efficient allocation of resources. This, they believe, consequently creates a system of economic growth and innovation that benefits both producers and consumers.
3. Both classical liberalism and libertarianism emphasize the importance of limited government intervention. They argue that the role of government should be minimal, limited to protecting individual rights, enforcing contracts, and maintaining public safety. They believe that excessive government intervention can lead to inefficiency, corruption, and the erosion of individual freedoms.
4. Both emphasize the importance of the rule of law, which means that all individuals, including those in power, are subject to the same laws and regulations. This prevents the abuse of power by those in positions of authority and helps ensure that everyone is treated fairly and equally.
5. Classical liberalism and libertarianism are movements aimed at reducing the influence of powerful centralized authorities such as governments over individuals.

Conclusion

Based on our discussion so far, we can see that classical liberalism vs libertarianism differs in a number of ways including their approach to foreign policy, level of government intervention in society and economy, as well as their approach to civil liberties. These differences have important implications for how each philosophy approaches contemporary political issues and debates. For instance, classical liberals could accept government intervention in the economy provided they believe it is for the greater good of the community, libertarians on the other hand, take on a more absolutist position advocating for a much more limited government role.

The central tenet of both classical liberalism and libertarianism is the reduction of the influence of powerful centralized authorities over people. Additional similarities include an emphasis on individual liberty, free markets, and the rule of law. Hence, although classical liberalism and libertarianism share similarities in their political and economic philosophies and differ in several other ways, it is important to note that both have been influential in shaping modern western democracies and continue to be important intellectual traditions in political and economic thought not only in America but across other continents.

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