The relationship of the Economic Liberalism in historical context
Introduction
Economic liberalism entails having a liberal economy where individuals produce goods on their own, make decision on how goods are to be supplied and through which means the goods are to get manufactured and eventually distributed. Such important decisions are to be made regardless of whether the economic system is democratic or dictatorial. Economic systems are distinguished from each other in regard to the capability of individuals to make decisions. In a liberal economy, individuals have the authority to make decisions regarding the market and what is carried out within the market. Economic liberalism means that individuals have the authority to direct the government according to the decisions they have come up with. The individuals however may delegate to the state and give it authority to make some decisions. The individuals have the authority to ask the government to carry out decisions they have come up with. Therefore if the economic is liberal, individuals are entitled to come up with economic decisions and ensure the government follows those decisions. Therefore this paper will discuss economic liberalism and its relationship in the historical context.
In an economic that is liberal; decisions are made by individuals and followed by the government in order to ensure that the market is free (Baldwin, 77). Individuals are able to make decisions that affect the market but cooperatives, nongovernmental organizations, private organizations and unions contribute much to the liberal economy. Individuals rule the entire economy thus the national government does as per the suggestions of the individuals and follow decisions made by the individuals. In the history of liberalism and more so the economic liberalism three groups have been considered which include the government, individuals and the voluntary groups. There should exist a good relationship between the decisions made by individuals that should be followed by the government and voluntary groups. The government however has economic powers which it exercises since it cannot fully support the decisions made by voluntary groups and individuals. Economic liberalism was and is important since it ensures that government alone does not make important economic decisions since it should remain democratic and allow other individuals make important decisions that govern the market (Baldwin, 77). In the period 1500-1800 the government was able to do what people wanted to be done and what it was supposed to do. The economic policy was not limited to the decisions made by the state and individuals since the economic policy is influenced by both decisions made by the state and the individuals too.
The state should do what it is supposed to do that what is right instead of doing what it is able to do which are two different things. The state should do what it is supposed to do since this is what liberalism is all about. The economic policy to be followed should be the one that engages decisions of individuals rather than the government controlling the market. Economic liberalism entails the freedom of the people in ruling their own economy rather than the government coming up with restrictions (Baldwin, 79). Individuals should ensure that they lead a free life and ensure their actions are free from government’s restrictions especially looking at an economic perspective. By 1500 individual decisions had not yet become implemented since the state made major decisions that all people were asked to follow. Most writers saw and wrote about the relationship between economic problems and economic policies since most people thought that economic problems were experienced because of the policies that existed before. People were advocating for a change in economic policies which would in turn deal with the economic problems. The state decisions influenced policies since the state came up with major polices without considering decisions of individuals which was wrong (Baldwin, 77). People wanted a policy whereby they would come up with their own decisions influencing the market and come up with processes of distributing their products without necessarily involving the state.
Most people believe in the economic freedom rather than the political freedom since they believe in free trade as well as nationalism. All people are working hard to ensure they gain riches which happened in that early period 1500-1800. People worked hard to ensure they gained material possession which indicated the wealth of an individual. Individuals worked to ensure they were stable both economically and politically (Baldwin, 78). All people were fighting to gain economic stability since the economic goods were useful in the lives of the individuals. Governments however came up with polices that government and determined possessions of individuals and therefore people were not for the idea of government intervention in their economic ways of life. They wanted to remain free thus have economic freedom to gain whatever they wanted, manufacture goods and distribute the goods and earn wealth. Freedom was important since it ensured that individuals came up with policies that ensured economic freedom was possible and that individuals made their own decisions.
Economic freedom gave rise to some problems such as inequality since individuals owned wealth while some had nothing. This inequality problem would later give rise to some social problems such as crimes since people who did not have anything would later steal from those who had. Equality was encouraged in the 18th century where people believed in wealth more than any other thing (Baldwin, 78). Wealth came hand in hand with power since powerful people were wealthier compared to other people. This made people believed that wealth influenced power and many people worked hard to earn wealth and later become powerful. During this period of 1500-1800 which was well known as the early modern period people believed in wealth and wanted the state to restrict its control on the wealth of individuals. Economic morality was advocated for since people wanted a Christian economy where people acquired wealth in the right manner without getting restrictions from the state. They wanted a policy whereby they would make major economic decisions without including the state.
Conclusion
From the above discussion, it is important to learn that economic freedom was the biggest issue people advocated for in the early modern period. People wanted the government to remain out in matters concerning the economy since the government had full authority in making both political and economic decisions. People advocated for a change in the economic polices where they wanted a free market where trade would be free without the government interfering with the policies. The individuals would decide whether or not to include the state thought the state was allowed to do whatever it was supposed to do. Therefore economic liberalism is was important during the early modern period since it ensured the existence of a free trade and economy.
Work cited
Baldwin, David A. Economic Statecraft. Princeton, N.J: Princeton University Press, 1985. Print.
