One of the most prominent distinctions between classical liberalism and New Deal liberalism is the level of government intervention that exists within a particular society. Ultimately both practices attempt to assist and promote the endeavors and economic prosperity of the individual, but one requires more government aid and assistance than the other. Classical liberalism advocates the idea that the government should remain hands-off during economic exchange, as it coercively hinders an individual's’ freedom of obtaining life, liberty, and property. In addition, the idea of free market is highly favored and accepted within classical liberalism. In contrast, New Deal liberalism believes that increased government spending and regulation is necessary
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World War II became the remedy to solve this economic crisis, developing a conservative opposition to slowly increase, forming the emergence of neoliberalism. Many conservatives believed that the New Deal possessed socialist ideals, serving as an abusive hindrance to a free-market economy. In addition, these individuals criticized this form of liberalism asserting that it undermined the country’s traditional liberal principles of privatization and self-sufficiency. They critiqued Roosevelt’s New Deal policies, claiming that he violated the laws of the Constitution by overstepping his political authority. One example of this was in 1933 when Congress passed the National Recovery Act, allowing the government to balance the economy through planning and replace the existing capitalist system (Kelley 2017). After the war, elite policymakers in the Western world continued to practice these New Deal liberal principles to ensure economic stability and social welfare throughout the world. They developed the Bretton Woods Institutions, in order to improve the balance of payment problems and to provide financial assistance for postwar reconstruction and development in damaged European countries and the Global South. By the early 1970s, this form of liberalism was beginning to face a crisis of “stagflation,” which …show more content…
In addition, both political practices promote the idea of limited regulation, as it hinders individuals from obtaining monetary success. During the emergence of neoliberalism, influential liberals such as Friedrich Hayek and Ludwig von Mises took the ideas of classical liberalism as a way to further express neoliberalism. In Hayek's Road to Serfdom, he proclaimed that centralized planning, also referred to as government intervention, is coercive power that limited the individual of obtaining economic prosperity (42). Furthermore, he noted that a planned government would never produce as much economic output, freedom, and happiness as a free economic system (57). Although Hayek opposed the idea of government intervention, he ultimately discarded the classical liberal idea of free market or laissez faire economics, stating that “the liberal argument does not advocate leaving things just as they are” (Hayek 37). Ludwig Mises possessed similar thoughts on classical liberalism as Hayek, asserting how liberalism allowed all individuals “under favorable conditions” to obtain the freedom and ability to “work their way up from straitened circumstances by their own power” (Mises 2). Within the readings, Mises emphasized the idea that the individual had the freedom to enter a path of their own
World War II became the remedy to solve this economic crisis, developing a conservative opposition to slowly increase, forming the emergence of neoliberalism. Many conservatives believed that the New Deal possessed socialist ideals, serving as an abusive hindrance to a free-market economy. In addition, these individuals criticized this form of liberalism asserting that it undermined the country’s traditional liberal principles of privatization and self-sufficiency. They critiqued Roosevelt’s New Deal policies, claiming that he violated the laws of the Constitution by overstepping his political authority. One example of this was in 1933 when Congress passed the National Recovery Act, allowing the government to balance the economy through planning and replace the existing capitalist system (Kelley 2017). After the war, elite policymakers in the Western world continued to practice these New Deal liberal principles to ensure economic stability and social welfare throughout the world. They developed the Bretton Woods Institutions, in order to improve the balance of payment problems and to provide financial assistance for postwar reconstruction and development in damaged European countries and the Global South. By the early 1970s, this form of liberalism was beginning to face a crisis of “stagflation,” which …show more content…
In addition, both political practices promote the idea of limited regulation, as it hinders individuals from obtaining monetary success. During the emergence of neoliberalism, influential liberals such as Friedrich Hayek and Ludwig von Mises took the ideas of classical liberalism as a way to further express neoliberalism. In Hayek's Road to Serfdom, he proclaimed that centralized planning, also referred to as government intervention, is coercive power that limited the individual of obtaining economic prosperity (42). Furthermore, he noted that a planned government would never produce as much economic output, freedom, and happiness as a free economic system (57). Although Hayek opposed the idea of government intervention, he ultimately discarded the classical liberal idea of free market or laissez faire economics, stating that “the liberal argument does not advocate leaving things just as they are” (Hayek 37). Ludwig Mises possessed similar thoughts on classical liberalism as Hayek, asserting how liberalism allowed all individuals “under favorable conditions” to obtain the freedom and ability to “work their way up from straitened circumstances by their own power” (Mises 2). Within the readings, Mises emphasized the idea that the individual had the freedom to enter a path of their own