Economic freedom or economic liberty is the ability of people of a society to take economic actions. This is a term used in economic and policy debates as well as in the philosophy of economics. One approach to economic freedom comes from classical liberal and libertarian traditions emphasizing free markets, free trade, private property under free enterprise. Another approach to economic freedom extends the welfare economics study of individual choice, with greater economic freedom coming from a "larger" set of possible choices. Other conceptions of economic freedom include freedom from want and the freedom to engage in collective bargaining; the free market viewpoint defines economic liberty as the freedom to produce and consume any goods and services acquired without the use of force, fraud or theft. This is embodied in the rule of law, property rights and freedom of contract, characterized by external and internal openness of the markets, the protection of property rights and freedom of economic initiative.
There are several indices of economic freedom. Based on these rankings correlative studies have found higher economic growth to be correlated with higher scores on the country rankings. With regards to other measures, such as equality, corruption and social violence and their correlation to economic freedom it has been argued that the economic freedom indices conflate unrelated policies and policy outcomes to conceal negative correlations between economic growth and economic freedom in some subcomponents. According to the free market view, a secure system of private property rights is an essential part of economic freedom; such systems include two main rights: the right to control and benefit from property and the right to transfer property by voluntary means. These rights offer people the possibility of autonomy and self-determination according to their personal values and goals. Economist Milton Friedman sees property rights as "the most basic of human rights and an essential foundation for other human rights."
With property rights protected, people are free to choose the use of their property, earn on it, transfer it to anyone else, as long as they do it on a voluntary basis and do not resort to force, fraud or theft. In such conditions most people can achieve much greater personal freedom and development than under a regime of government coercion. A secure system of property rights reduces uncertainty and encourages investments, creating favorable conditions for an economy to be successful. Empirical evidence suggests that countries with strong property rights systems have economic growth rates twice as high as those of countries with weak property rights systems, that a market system with significant private property rights is an essential condition for democracy. According to Hernando de Soto, much of the poverty in the Third World countries is caused by the lack of Western systems of laws and well-defined and universally recognized property rights. De Soto argues that because of the legal barriers poor people in those countries can not utilize their assets to produce more wealth.
One thinker to question private property was Pierre-Joseph Proudhon, a socialist and anarchist, who argued that property is both theft and freedom. Freedom of contract is the right to choose one's contracting parties and to trade with them on any terms and conditions one sees fit. Contracts permit individuals to create their own enforceable legal rules, adapted to their unique situations. However, not all contracts need to be enforced by the state. For example, in the United States there is a large number of third-party arbitration tribunals which resolve disputes under private commercial law. Negatively understood, freedom of contract is freedom from government interference and from imposed value judgments of fairness; the notion of "freedom of contract" was given one of its most famous legal expressions in 1875 by Sir George Jessel MR: f there is one thing more than another public policy requires it is that men of full age and competent understanding shall have the utmost liberty of contracting, that their contracts when entered into and voluntarily shall be held sacred and shall be enforced by courts of justice.
Therefore, you have this paramount public policy to consider – that you are not to interfere with this freedom of contract. The doctrine of freedom of contract received one of its strongest expressions in the US Supreme Court case of Lochner v New York which struck down legal restrictions on the working hours of bakers. Critics of the classical view of freedom of contract argue that this freedom is illusory when the bargaining power of the parties is unequal, most notably in the case of contracts between employers and workers; as in the case of restrictions on working hours, workers as a group may benefit from legal protections that prevent individuals agreeing to contracts that require long working hours. In its West Coast Hotel Co. v. Parrish decision in 1937, overturning Lochner, the Supreme Court cited an earlier decisions From this point on, the Lochner view of freedom of contract has been rejected by US courts; some free market advocates argue that political and civil liberties have expanded with market-based economies, present empirical evidence to support the claim that economic and political freedoms are linked.
In Capitalism and Freedom, Friedman further developed Friedrich Hayek's argument that economic freedom, while itself an important component of total freedom, is a necessary condition for political freedom. He commented that centralized control of economic activities was always accompanied with political repression. In his view, voluntary character of all transactions in a free
Separation of church and state
The separation of church and state is a philosophic and jurisprudential concept for defining political distance in the relationship between religious organizations and the nation state. Conceptually, the term refers to the creation of a secular state and to disestablishment, the changing of an existing, formal relationship between the church and the state. In a society, the degree of political separation between the church and the civil state is determined by the legal structures and prevalent legal views that define the proper relationship between organized religion and the state; the arm's length principle proposes a relationship wherein the two political entities interact as organizations independent of the authority of the other. The strict application of secular principle of laïcité is used in France, while secular societies, such as Denmark and the United Kingdom, maintain a form of constitutional recognition of an official state religion; the philosophy of the separation of the church from the civil state parallels the philosophies of secularism, disestablishmentarianism, religious liberty, religious pluralism, by way of which the European states assumed some of the social roles of the church, the welfare state, a social shift that produced a culturally secular population and public sphere.
In practice, church–state separation varies from total separation, mandated by the country's political constitution, as in India and Singapore, to a state religion, as in the Maldives. An important contributor to the discussion concerning the proper relationship between Church and state was St. Augustine, who in The City of God, Book XIX, Chapter 17, examined the ideal relationship between the "earthly city" and the "city of God". In this work, Augustine posited that major points of overlap were to be found between the "earthly city" and the "city of God" as people need to live together and get along on earth. Thus, Augustine held that it was the work of the "temporal city" to make it possible for a "heavenly city" to be established on earth. For centuries, monarchs ruled by the idea of divine right. Sometimes this began to be used by a monarch to support the notion that the king ruled both his own kingdom and Church within its boundaries, a theory known as caesaropapism. On the other side was the Catholic doctrine that the Pope, as the Vicar of Christ on earth, should have the ultimate authority over the Church, indirectly over the state.
Moreover, throughout the Middle Ages the Pope claimed the right to depose the Catholic kings of Western Europe and tried to exercise it, sometimes sometimes not, such as was the case with Henry VIII of England and Henry III of Navarre. In the West the issue of the separation of church and state during the medieval period centered on monarchs who ruled in the secular sphere but encroached on the Church's rule of the spiritual sphere; this unresolved contradiction in ultimate control of the Church led to power struggles and crises of leadership, notably in the Investiture Controversy, resolved in the Concordat of Worms in 1122. By this concordat, the Emperor renounced the right to invest ecclesiastics with ring and crosier, the symbols of their spiritual power, guaranteed election by the canons of cathedral or abbey and free consecration. At the beginning of the Protestant Reformation, Martin Luther articulated a doctrine of the two kingdoms. According to James Madison one of the most important modern proponents of the separation of church and state, Luther's doctrine of the two kingdoms marked the beginning of the modern conception of separation of church and state.
Those of the Radical Reformation took Luther's ideas in new direction, most notably in the writings of Michael Sattler, who agreed with Luther that there were two kingdoms, but differed in arguing that these two kingdoms should be separate, hence baptized believers should not vote, serve in public office or participate in any other way with the "kingdom of the world." While there was a diversity of views in the early days of the Radical Reformation, in time Sattler's perspective became the normative position for most Anabaptists in the coming centuries. Anabaptists came to teach that religion should never be compelled by state power, approaching the issue of church-state relations from the position of protecting the church from the state. In the 1530s, Henry VIII, angered by the Pope Clement VII's refusal to annul his marriage to Catherine of Aragon, decided to break with the Church and set himself as ruler of the Church of England; the monarchs of Great Britain have retained ecclesiastical authority in the Church of England since Henry VIII, having the current title, Supreme Governor of the Church of England.
England's ecclesiastical intermixing did not spread however, due to the extensive persecution of Catholics that resulted from Henry's power grab. This led to Nonconformism, English Dissenters, the anti-Catholicism of Oliver Cromwell, the Commonwealth of England, the Penal Laws against Catholics and others who did not adhere to the Church of England. One of the results of the persecution in England was that some people fled Great Britain to be able to worship as they wished – but they did not seek religious freedom, early North American colonies were as intolerant of religious dissent as England; some of these people voluntarily sailed to the American Colonies for this purpose. After the American Colonies famously revolted against George III of the United Kingdom, the Constitution of United States was amended to ban the establishment of
Virtual reality is an interactive computer-generated experience taking place within a simulated environment. It incorporates auditory and visual feedback, but may allow other types of sensory feedback; this immersive environment can be similar to the real world or it can be fantastical. Current VR technology most uses virtual reality headsets or multi-projected environments, sometimes in combination with physical environments or props, to generate realistic images and other sensations that simulate a user's physical presence in a virtual or imaginary environment. A person using virtual reality equipment is able to "look around" the artificial world, move around in it, interact with virtual features or items; the effect is created by VR headsets consisting of a head-mounted display with a small screen in front of the eyes, but can be created through specially designed rooms with multiple large screens. Other forms of VR include augmented reality and mixed reality systems. VR systems that include transmission of vibrations and other sensations to the user through a controller or other devices are known as haptic systems.
This tactile information is known as force feedback in medical, video gaming, military training applications. "Virtual" has had the meaning of "being something in essence or effect, though not or in fact" since the mid-1400s. The term "virtual" has been used in the computer sense of "not physically existing but made to appear by software" since 1959. In 1938, French avant-garde playwright Antonin Artaud described the illusory nature of characters and objects in the theatre as "la réalité virtuelle" in a collection of essays, Le Théâtre et son double; the English translation of this book, published in 1958 as The Theater and its Double, is the earliest published use of the term "virtual reality". The term "artificial reality", coined by Myron Krueger, has been in use since the 1970s; the term "virtual reality" was first used in a science fiction context in The Judas Mandala, a 1982 novel by Damien Broderick. One method by which virtual reality can be realized is simulation-based virtual reality.
Driving simulators, for example, give the driver on board the impression of driving an actual vehicle by predicting vehicular motion caused by driver input and feeding back corresponding visual and audio cues to the driver. With avatar image-based virtual reality, people can join the virtual environment in the form of real video as well as an avatar. One can participate in the 3D distributed virtual environment as form of either a conventional avatar or a real video. A user can select own type of participation based on the system capability. In projector-based virtual reality, modeling of the real environment plays a vital role in various virtual reality applications, such as robot navigation, construction modeling, airplane simulation. Image-based virtual reality system has been gaining popularity in computer graphics and computer vision communities. In generating realistic models, it is essential to register acquired 3D data. Desktop-based virtual reality involves displaying a 3D virtual world on a regular desktop display without use of any specialized positional tracking equipment.
Many modern first-person video games can be used as an example, using various triggers, responsive characters, other such interactive devices to make the user feel as though they are in a virtual world. A common criticism of this form of immersion is that there is no sense of peripheral vision, limiting the user's ability to know what is happening around them. A head-mounted display more immerses the user in a virtual world. A virtual reality headset includes two small high resolution OLED or LCD monitors which provide separate images for each eye for stereoscopic graphics rendering a 3D virtual world, a binaural audio system and rotational real-time head tracking for six degrees of movement, optionally motion controls with haptic feedback for physically interacting within the virtual world in a intuitive way with little to no abstraction. Augmented reality is a type of virtual reality technology that blends what the user sees in their real surroundings with digital content generated by computer software.
The additional software-generated images with the virtual scene enhance how the real surroundings look in some way. AR systems layer virtual information over a camera live feed into a headset or smartglasses or through a mobile device giving the user the ability to view three-dimensional images. Mixed reality is the merging of the real world and virtual worlds to produce new environments and visualizations where physical and digital objects co-exist and interact in real time. A cyberspace is a networked virtual reality. Simulated reality is a hypothetical virtual reality as immersive as the actual reality, it is most to be produced using a brain–computer interface and quantum computing. The exact origins of virtual reality are disputed because of how difficult it has been to formulate a definition for the concept of an alternative existence; the development of perspective in Renaissance Europe created convincing depictions of spaces that did not exist, in what has been referred to as the "multiplying of artificial worlds".
Other elements of virtual reality appeared as early as the 1860s. Antonin Artaud took the view that illusion was not distinct from reality, advocating that spectators at a play should suspend disbelief and regard the drama on stage as reality; the first references to the more modern concept of virtual reality came from science fiction. Morton Heilig wrote in the 1950s of an "Experience Theatre" that could encompass all the sen
Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption. It is the act of creating an output, a good or service which has value and contributes to the utility of individuals. Economic well-being is created in a production process, meaning all economic activities that aim directly or indirectly to satisfy human wants and needs; the degree to which the needs are satisfied is accepted as a measure of economic well-being. In production there are two features, they are improving quality-price-ratio of goods and services and increasing incomes from growing and more efficient market production. The most important forms of production are: market production public production household productionIn order to understand the origin of economic well-being, we must understand these three production processes. All of them produce commodities which contribute to well-being of individuals; the satisfaction of needs originates from the use of the commodities.
The need satisfaction increases when the quality-price-ratio of the commodities improves and more satisfaction is achieved at less cost. Improving the quality-price-ratio of commodities is to a producer an essential way to improve the competitiveness of products but this kind of gains distributed to customers cannot be measured with production data. Improving the competitiveness of products means to the producer lower product prices and therefore losses in incomes which are to compensated with the growth of sales volume. Economic well-being increases due to the growth of incomes that are gained from the growing and more efficient market production. Market production is the only production form which distributes incomes to stakeholders. Public production and household production are financed by the incomes generated in market production, thus market production has a double role in creating well-being, i.e. the role of producing goods and services and the role of creating income. Because of this double role market production is the “primus motor” of economic well-being and therefore here under review.
In principle there are two main activities in an economy and consumption. There are two kinds of actors and consumers. Well-being is made possible by efficient production and by the interaction between producers and consumers. In the interaction, consumers can be identified in two roles. Consumers can be both customers of the suppliers to the producers; the customers’ well-being arises from the commodities they are buying and the suppliers’ well-being is related to the income they receive as compensation for the production inputs they have delivered to the producers. Stakeholders of production are persons, groups or organizations with an interest in a producing company. Economic well-being originates in efficient production and it is distributed through the interaction between the company’s stakeholders; the stakeholders of companies are economic actors. Based on the similarities of their interests, stakeholders can be classified into three groups in order to differentiate their interests and mutual relations.
The three groups are. The interests of these stakeholders and their relations to companies are described below. Our purpose is to establish a framework for further analysis. Customers The customers of a company are consumers, other market producers or producers in the public sector; each of them has their individual production functions. Due to competition, the price-quality-ratios of commodities tend to improve and this brings the benefits of better productivity to customers. Customers get more for less. In households and the public sector this means. For this reason the productivity of customers can increase over time though their incomes remain unchanged. Suppliers The suppliers of companies are producers of materials, energy and services, they all have their individual production functions. The changes in prices or qualities of supplied commodities have an effect on both actors’ production functions. We come to the conclusion that the production functions of the company and its suppliers are in a state of continuous change.
Producer community The incomes are generated for those participating in production, i.e. the labour force and owners. These stakeholders are referred to here as producer communities or, in shorter form, as producers; the producer communities have a common interest in maximizing their incomes. These parties that contribute to production receive increased incomes from the growing and developing production; the well-being gained through commodities stems from the price-quality relations of the commodities. Due to competition and development in the market, the price-quality relations of commodities tend to improve over time; the quality of a commodity goes up and the price goes down over time. This development favourably affects the production functions of customers. Customers get more for less. Consumer customers get more satisfaction at less cost; this type of well-being generation can only be calculated from the production data. The situation is presented in this study; the producer community earns income as compensation for the inputs they have delivered to the production.
When the production grows and becomes more efficient, the income tends to increase. In production this brings about an increased ability to pay salaries and profits; the growth of production and impr
Freedom of the press
Freedom of the press or freedom of the media is the principle that communication and expression through various media, including printed and electronic media published materials, should be considered a right to be exercised freely. Such freedom implies the absence of interference from an overreaching state. With respect to governmental information, any government may distinguish which materials are public or protected from disclosure to the public. State materials are protected due to either of two reasons: the classification of information as sensitive, classified or secret, or the relevance of the information to protecting the national interest. Many governments are subject to sunshine laws or freedom of information legislation that are used to define the ambit of national interest; the United Nations' 1948 Universal Declaration of Human Rights states: "Everyone has the right to freedom of opinion and expression. This philosophy is accompanied by legislation ensuring various degrees of freedom of scientific research and press.
The depth to which these laws are entrenched in a country's legal system can go as far down as its constitution. The concept of freedom of speech is covered by the same laws as freedom of the press, thereby giving equal treatment to spoken and published expression. Sweden was the first country in the world to adopt freedom of the press into its constitution with the Freedom of the Press Act of 1766. Freedom of the press is construed as an absence of interference by outside entities, such as a government or religious organization, rather than as a right for authors to have their works published by other people; this idea was famously summarized by the 20th century American journalist, A. J. Liebling, who wrote, "Freedom of the press is guaranteed only to those who own one". Freedom of the press gives the printer or publisher exclusive control over what the publisher chooses to publish, including the right to refuse to print anything for any reason. If the author cannot reach a voluntary agreement with a publisher to produce the author's work the author must turn to self-publishing.
Beyond legal definitions, several non-governmental organizations use other criteria to judge the level of press freedom around the world. Some create subjective lists, while others are based on quantitative data: Reporters Without Borders considers the number of journalists murdered, expelled or harassed, the existence of a state monopoly on TV and radio, as well as the existence of censorship and self-censorship in the media, the overall independence of media as well as the difficulties that foreign reporters may face to rank countries in levels of press freedom; the Committee to Protect Journalists systematically tracks the number of journalists killed and imprisoned in reprisal for their work. It says it uses the tools of journalism to help journalists by tracking press freedom issues through independent research, fact-finding missions, a network of foreign correspondents, including local working journalists in countries around the world. CPJ shares information on breaking cases with other press freedom organizations worldwide through the International Freedom of Expression Exchange, a global network of more than 119 free expression organizations.
CPJ tracks impunity in cases of journalist murders. CPJ staff applies strict criteria for each case. Freedom House studies the more general political and economic environments of each nation in order to determine whether relationships of dependence exist that limit in practice the level of press freedom that might exist in theory. Panels of experts assess the press freedom score and draft each country summary according to a weighted scoring system that analyzes the political, economic and safety situation for journalists based on a 100-point scale, it categorizes countries as having a free, party free, or not free press. Every year, the Committee to Protect Journalists releases its comprehensive list of all journalists killed in relation to their work, including profiles of each journalist and a database, an annual census of journalists in jail as of midnight on December 1. 2017 was a record year for journalists jailed with 262 journalists behind bars. Turkey and Egypt accounted for more than half of all journalists jailed globally.
Every year, Reporters Without Borders establish a subjective ranking of countries in terms of their freedom of the press. Press Freedom Index list is based on responses to surveys sent to journalists that are members of partner organizations of the RWB, as well as related specialists such as researchers and human rights activists; the survey asks questions about direct attacks on journalists and the media as well as other indirect sources of pressure against the free press, such as non-governmental groups. In 2016, the countries where press was the most free were Finland, Norway and New Zealand, followed by Costa Rica, Sweden and Jamaica; the country with the least degree of press freedom was Eritrea, followed by North Korea, Syria, China and Sudan. The problem with media in India, the world's largest democracy, is enormous. India doesn't have a model for a democratic press; the Canadian Journalists for Free Expression has published a report on India stating that Indian journalists are forced—or feel compelled for the sake of job security—to report in ways th
Liberalism is a political and moral philosophy based on liberty and equal rights. Liberals espouse a wide array of views depending on their understanding of these principles, but they support limited government, individual rights, democracy, gender equality, racial equality, freedom of speech, freedom of the press and freedom of religion. Liberalism became a distinct movement in the Age of Enlightenment, when it became popular among Western philosophers and economists. Liberalism sought to replace the norms of hereditary privilege, state religion, absolute monarchy, the divine right of kings and traditional conservatism with representative democracy and the rule of law. Liberals ended mercantilist policies, royal monopolies and other barriers to trade, instead promoting free markets. Philosopher John Locke is credited with founding liberalism as a distinct tradition, arguing that each man has a natural right to life and property, adding that governments must not violate these rights based on the social contract.
While the British liberal tradition has emphasised expanding democracy, French liberalism has emphasised rejecting authoritarianism and is linked to nation-building. Leaders in the Glorious Revolution of 1688, the American Revolution of 1776 and the French Revolution of 1789 used liberal philosophy to justify the armed overthrow of royal tyranny. Liberalism started to spread especially after the French Revolution; the 19th century saw liberal governments established in nations across Europe and South America, whereas it was well-established alongside republicanism in the United States. In Victorian Britain, it was used to critique the political establishment, appealing to science and reason on behalf of the people. During 19th and early 20th century, liberalism in the Ottoman Empire and Middle East influenced periods of reform such as the Tanzimat and Al-Nahda as well as the rise of secularism, constitutionalism and nationalism; these changes, along with other factors, helped to create a sense of crisis within Islam, which continues to this day, leading to Islamic revivalism.
Before 1920, the main ideological opponent of classical liberalism was conservatism, but liberalism faced major ideological challenges from new opponents: fascism and communism. However, during the 20th century liberal ideas spread further—especially in Western Europe—as liberal democracies found themselves on the winning side in both world wars. In Europe and North America, the establishment of social liberalism became a key component in the expansion of the welfare state. Today, liberal parties continue to wield influence throughout the world. However, liberalism still has challenges to overcome in Asia; the fundamental elements of contemporary society have liberal roots. The early waves of liberalism popularised economic individualism while expanding constitutional government and parliamentary authority. Liberals sought and established a constitutional order that prized important individual freedoms, such as freedom of speech and freedom of association. Waves of modern liberal thought and struggle were influenced by the need to expand civil rights.
Liberals have advocated gender and racial equality in their drive to promote civil rights and a global civil rights movement in the 20th century achieved several objectives towards both goals. Continental European liberalism is divided between moderates and progressives, with the moderates tending to elitism and the progressives supporting the universalisation of fundamental institutions, such as universal suffrage, universal education and the expansion of property rights. Over time, the moderates displaced the progressives as the main guardians of continental European liberalism. Words such as liberal, liberty and libertine all trace their history to the Latin liber, which means "free". One of the first recorded instances of the word liberal occurs in 1375, when it was used to describe the liberal arts in the context of an education desirable for a free-born man; the word's early connection with the classical education of a medieval university soon gave way to a proliferation of different denotations and connotations.
Liberal could refer to "free in bestowing" as early as 1387, "made without stint" in 1433, "freely permitted" in 1530 and "free from restraint"—often as a pejorative remark—in the 16th and the 17th centuries. In 16th century England, liberal could have positive or negative attributes in referring to someone's generosity or indiscretion. In Much Ado About Nothing, William Shakespeare wrote of "a liberal villaine" who "hath confest his vile encounters". With the rise of the Enlightenment, the word acquired decisively more positive undertones, being defined as "free from narrow prejudice" in 1781 and "free from bigotry" in 1823. In 1815, the first use of the word "liberalism" appeared in English. In Spain, the liberales, the first group to use the liberal label in a political context, fought for decades for the implementation of the 1812 Constitution. From 1820 to 1823 during the Trienio Liberal, King Ferdinand VII was compelled by the liberales to swear to uphold the Constitution. By the middle of the 19th century, liberal was used as a politicised term for parties and movements worldwide.
Over time, the meaning of the word liberalism began to diverge in different parts of the world. According to the Encyclopædia Britannica: "In the United States, liberalism is associated with the welfare-state policies of the New Deal programme of the Democratic administration of Pres. Franklin D. Roosevelt, where
Classical liberalism is a political ideology and a branch of liberalism which advocates civil liberties under the rule of law with an emphasis on economic freedom. Related to economic liberalism, it developed in the early 19th century, building on ideas from the previous century as a response to urbanisation and to the Industrial Revolution in Europe and the United States. Notable individuals whose ideas contributed to classical liberalism include John Locke, Jean-Baptiste Say, Thomas Robert Malthus and David Ricardo, it drew on the classical economic ideas espoused by Adam Smith in Book One of The Wealth of Nations and on a belief in natural law and progress. The term classical liberalism has been applied in retrospect to distinguish earlier 19th-century liberalism from social liberalism. Core beliefs of classical liberals included new ideas—which departed from both the older conservative idea of society as a family and from the sociological concept of society as complex set of social networks.
Classical liberals believe that individuals are "egoistic, coldly calculating inert and atomistic" and that society is no more than the sum of its individual members. Classical liberals agreed with Thomas Hobbes that government had been created by individuals to protect themselves from each other and that the purpose of government should be to minimize conflict between individuals that would otherwise arise in a state of nature; these beliefs were complemented by a belief that laborers could be best motivated by financial incentive. This belief led to the passage of the Poor Law Amendment Act 1834, which limited the provision of social assistance, based on the idea that markets are the mechanism that most efficiently leads to wealth. Adopting Thomas Robert Malthus's population theory, they saw poor urban conditions as inevitable, believed population growth would outstrip food production and thus regarded that consequence desirable because starvation would help limit population growth, they opposed any income or wealth redistribution, believing it would be dissipated by the lowest orders.
Drawing on ideas of Adam Smith, classical liberals believed that it is in the common interest that all individuals be able to secure their own economic self-interest. They were critical of what would come to be the idea of the welfare state as interfering in a free market. Despite Smith’s resolute recognition of the importance and value of labor and of laborers, classical liberals selectively criticized labour's group rights being pursued at the expense of individual rights while accepting corporations' rights, which led to inequality of bargaining power. Classical liberals argued that individuals should be free to obtain work from the highest-paying employers while the profit motive would ensure that products that people desired were produced at prices they would pay. In a free market, both labor and capital would receive the greatest possible reward while production would be organized efficiently to meet consumer demand. Classical liberals argued for what they called a minimal state, limited to the following functions: A government to protect individual rights and to provide services that cannot be provided in a free market.
A common national defense to provide protection against foreign invaders. Laws to provide protection for citizens from wrongs committed against them by other citizens, which included protection of private property, enforcement of contracts and common law. Building and maintaining public institutions. Public works that included a stable currency, standard weights and measures and building and upkeep of roads, harbors, railways and postal services. Classical liberals asserted that rights are of a negative nature and therefore stipulate that other individuals and governments are to refrain from interfering with the free market, opposing social liberals who assert that individuals have positive rights, such as the right to vote, the right to an education, the right to health care and the right to a living wage. For society to guarantee positive rights, it requires taxation over and above the minimum needed to enforce negative rights. Core beliefs of classical liberals did not include democracy or government by a majority vote by citizens because "there is nothing in the bare idea of majority rule to show that majorities will always respect the rights of property or maintain rule of law".
For example, James Madison argued for a constitutional republic with protections for individual liberty over a pure democracy, reasoning that in a pure democracy a "common passion or interest will, in every case, be felt by a majority of the whole and there is nothing to check the inducements to sacrifice the weaker party". In the late 19th century, classical liberalism developed into neo-classical liberalism, which argued for government to be as small as possible to allow the exercise of individual freedom. In its most extreme form, neo-classical liberalism advocated social Darwinism. Right-libertarianism is a modern form of neo-classical liberalism. Friedrich Hayek identified two different traditions within classical liberalism, namely the British tradition and the French tradition. Hayek saw the British philosophers Bernard Mandeville, David Hume, Adam Smith, Adam Ferguson, Josiah Tucker and William Paley as representative of a tradition that articulated beliefs in empiricism, the common law and in traditions and institutions which had spontaneously evolved but were imperfectly understood.
The French tradition included Jean-Jacques Rousseau, Marquis de Condorcet, the Encyclopedists and the Physiocrats. This tradition believed in rationalism and sometimes showed hostility to religion. Hayek conceded that the national labels did not correspond to those belonging to each tradition since he saw the