Liberalism: the role of the state in economic life, ideas and problems

As an ideological trend, liberalism began to take shape in the 19th century. The social base of this direction was the representatives of the bourgeoisie and the middle class. There are many definitions of the term "liberalism". The name comes from the Latin word liberalis, which translates as "free." In simple words, liberalism is an ideology that proclaims the introduction of democratic principles into political life. What else does liberalism offer? The role of the state in the economic life of the country is reduced to almost zero.

The role of the state in the economy

Protection of public order and ensuring security - this is the function for which the state provides for liberalism. The role of the state in economic life is minimal, it assumes complete non-interference. The market develops independently, based on free competition. The financial position, the existence of a means of subsistence is a problem for each individual. In this sphere, the state does not interfere in the same way as in the market processes.

As an exception, we can cite a new liberalism. The role of the state in economic life, according to the ideas of neoliberalism, is to prevent the development of monopoly in the market. Also, the state is required to support the poor by means of special programs.

The Ideology of Liberalism

The main ideas of liberalism were formulated in the XIX century. The key place in liberal ideology is taken by a single person.

The main place is occupied by the idea that human life is an absolute and unshakable value. Everyone from the moment of birth receives unshakable, natural rights, such as the right to life, private property and freedom.

The most important value a person has is his personal freedom. It can be limited only by law. Everyone is responsible for their actions and actions.

Tolerant attitude to the confession and moral principles of the individual.

The functions of the state are minimized. Basically, its task is to ensure the equality of all before the law. Relations between the state apparatus and society are of a contractual nature. Also, liberalism does not provide for the role of the state in economic life, reducing it to a minimum.

Problems of liberal ideology

The problems of liberalism largely stem from the very principles of this ideology. Reducing the role of the state in the economic life of society leads to social stratification of citizens - there are low-income segments of the population, as well as super-rich. Weak participants in the market process are absorbed, replaced by stronger ones. As a result, the state has to intervene in these processes. This idea contributed to the emergence of a new trend of liberal thought - neo-liberalism, revising some of the foundations of classical liberalism. Neoliberalism expands the functions of the state - it prevents the monopoly from capturing the market, creates social programs to help poor people, guarantees the provision of every citizen with his rights to work, education, pension and others.

To date, neo-liberalism is the basis for building a rule-of-law state.