Economic liberalism

under economic liberalism one understands the application of liberal principles to the range of the economy. At present this is also often called Neoliberalismus.

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philosophical bases

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liberty of the individual

John Stuart Mill


Allgemeinene liberal the principle reads: Everyone has the liberty to do everything what it wants, if it does not hurt the liberty of another. John Stuart Mill formulated it in such a way: “that the only reason, for which mankind unites, individually or is authorized into the freedom of action one of their members to interfere: to protect itself. That the only purpose, over one dessentwillen obligation against the will of a member of a civilized society rightfully exercise may: to prevent the damage of others. “

From it the demands result after freedom of contract freedom of trade free occupation choice free trade [work on

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  • private property
  • John curl
  • liberal
stress the right

to

private property

on the range of the economic actions referred, since only this can ensure the liberty of the particular. Nature-legal reasons of this kind are in beginnings with Hugo Grotius and Samuel Pufendorf and by John curl are out-formulated: The particular possesses property at its body and therefore also at the work of its body. It is also entitled to tear things from the natural state if it worked on these (for example the soil, which someone works on first time). If the object from the natural state tore, it can change the owner then only by donation or exchange. Obligation is hereby impossible. In the tradition of this reason for example the US-American founder fathers Robert Nozick or Ayn edge argue. The idea of the classical liberalism - explicit without nature-legal component - is continued to represent by Jeremy Bentham and John Stuart Mill.

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theoretical bases

Adam Smith


A central concept of the classical liberalism is the invisible hand of the market formulated by Adam Smith: Self-interested striving of humans contributes to well-being of the entire society. After liberal view ensures the market for the most efficient Allokation of resources. A free competition represents thereby the optimal control controlling of the economy. National interferences such as subsidies or protective duties are regarded as competition obstacles.





David Ricardo
David Ricardo

David Ricardo tried to point the advantages out of the free trade with his theory of the Komparative of cost advantages.

The Say theorem designated after Jean Baptiste Say assumes without national interference always a market equilibrium adjusts itself.

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directions

important currents and schools of the economic liberalism:

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restaurant economics principles

  • of normative individualism: Source for politico-economic decisions is the individual preference of the restaurant subjects. Due to aggregation problems individual preferences therefore a criticism of national economic programmes is practiced, if this is derived from general principles (refusal of agenda politics). This principle resembles the principle of the people sovereignty in the liberal political theory.
  • Private property: After liberal view is not it task of the state to become business active. Therefore the privatisation of state enterprises is demanded and/or. Task of state participation, in particular also of national monopolies within the range of the infrastructure (precaution for existence) like telecommunications, traffic, energy or education. The state has to provide however by a competitive policy for functional markets and prevent the formation of monopoly markets and market failure. The priority of private property and private-economical regulation forms in relation to national influence are led away every now and then from a certain aspect to the economic theory of the rights of disposal. So steige the economical prosperity is, the more properties in private hand. With socialist regulation forms come it however inevitably to the so-called Tragik that common land.
  • Free-market economy: After liberal conviction is to decide alone the market, thus offer and demand, on kind, price and quantity of the special and services, since so an optimal Allokation of resources takes place.
  • Stability politics: monetaryistic money supply policy is to guarantee stable prices by a stable currency (macro-economic stability) and by a balanced national budget. From a restrictive money, interest and a budgetary policy follow a rationalisation of the administration, the creation of part-autonomous units and a paging of certain public tasks in the sense of a slim management. It proceeds from the stability of the private sector, instability is above all the national money, credit - and fiscal policy to attribute.
  • Competition: Also with the emergence of monopolies liberals set on the free market and assume the self adjustment mechanisms of the market lead in the long term to a market equilibrium.
  • Deregulierung: Liberals demand a Deregulierung and a liberalisation of the economy in the sense of a reduction of the laws and regulations, as far as they are not really necessarily regarded as exaggerated bureaucratic and, because thereby einzelwirtschaftliche actions were prevented.
  • Free trade: Liberals endorse the globalization in the sense of a promotion of the free trade between the states. The free trade contributes according to estimate of the Neoliberalismus to the promotion of world-wide prosperity . The restriction of the trade by means of more tarifärer (protective duties) and not tarifärer barriers to trade and a promotion of certain industries by the State of (subsidies) however leads after neoliberaler conception to unequal distribution and poverty in the world. So for example developing countries have it heavily to remain competitive in relation to high-subsidized European rural economy. Neoliberale accuse to the industrial nations to demand only from the developing countries free trade not to want to insert these however in the own country. Trailers of the Neoliberalismus demand to diminish all trade barriers to other countries and to prevent the preference of the domestic products by subsidies. Thus, then they maintain, could developing countries fair chances on the world market receive.
  • Tax policy: Usually low control items, approximately in form of a proportional tariff or a differential tariff , are demanded and a simple control system in place of a system of various Einzelbestimmungen. Indirect taxes are preferred in relation to direct taxes. Taxes on the substance and fortunes are likewise rejected as double taxation like trifle taxes, with which the incomes are often hardly higher than the expenditure to their collection. Altogether the lowering is endorsed by taxations of enterprises, particularly since thereby often even an increase of the national tax receipts would go.
  • Social security: Within the range of the social systems liberals endorse private-economically organized solutions in place of as bureaucratically regarded national systems. Thus a more efficient administration of the means of the citizen is to be achieved. The allocation procedure is criticized, since it stands on no solid basis. Instead private precaution is endorsed in the context of the capital covering procedure.
  • Social welfare assistance: Milton Friedman suggested a negative income tax. Afterwards became the tax office each taxpayer, whose income is under a minimum which can be specified, which transfers difference without further examinations. In the concept of the citizen money all taxfinanced social assistance of the state are summarized. Thus it is to be guaranteed that each citizen has a subsistence level, without having to appear at the state as asking plates.
  • Vermachtung: The liberalism criticizes concentration of power in economics (Kartellbildung) and state and turns against group-egoistic („rent seeking “) display of power of lobbyists (e.g. Trade unions and employers' associations).
  • Tariff right: The tariff right is to be loosened to favour of operational agreements with opening clauses. Surface collective agreements do not become fair after liberals view of the individual situation of the enterprises.
  • Economic policy: It is demanded that also in rezessiven phases of the economy no anticyclical are to take place money and fiscal policy measures on the part of the policy. Economic situation programs are straw fires, which harm on a long-term basis more than would use. Subsidies distort the competition after neoliberaler view, prevent innovation and structural change and are therefore to be diminished. Instead an offer-oriented economic policy is pursued, which is to energize the consumption by more favorable products. Means in addition are among other things the lowering of wages, ancillary wages and taxations of enterprises. In accordance with it gives is expected that lower wages lead to higher profits (G), which energize to higher investments (I), what more occupation (B) to create are.
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see also

to Neoklassik

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literature

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