Classic liberalism
It was preceded by mercantilism which is a protectionist idea – setting tariffs and such to protect the
economy of the nation. Adam Smith denied this in his 1776 publishment of Wealth of nations, in
which he argued that the wealth of a nation does not lie in the amount of gold and silver it amasses,
but in the amount of goods and services its people produce. The way to do so is not achievable with
protectionism (the government imposes tariffs, …) but to exclude the government from the control
of the economy and let the economy flow freely. Smith argued that an invisible hand takes care of
optimal prices and maximizes welfare. This invisible hand is by the way nothing but the acting of all
the self-interested and rationally thinking economic actors. The market is the most optimal when
everyone pursues what is best for them.
Laissez-faire is an expression of having the government out of the picture with regards to the
economy.
Furthermore, not only did this idea with more freedom appear in economics but in the everyday life.
People wanted more freedom in choosing their religion, they demanded free speech and
independent press.
Classic conservatism
Was established by Edmund Burke as an answer to the radicalism of the French revolutionists. It
agreed with classic liberalism in that economy is better off without government intervention. (free
speech, media as well?)
The distinguishing part is that Burke argued that change in economy and every other field should
come slowly but surely, as the present rules, environment have been forming for a lot of time such as
religion or tradition, and they work. Maybe they are not the best, but good enough because
otherwise they would not have become the pillars of social and economic life.
Burke strongly opposed the idea of French radicalism – change everything in a short amount of time
as everything that there is is wrong – he foreshadowed when the revolution started in 1792 that it
would lead to France fall under military dictatorship. Not long after, Napoleon appeared.
To sum up, the most important message classical conservatism tries to convey is that change is good
but has to come slowly so that it has time to solidify and people also have time to accommodate.
New rules and traditions however have to be built on old, well established rules and traditions that
everybody accepts, otherwise they will not last. So sticking to tradition- religion for ex. Has been
around for a lot of centuries – is important as ‘they work’. The reason they work is that they would
not have come to being if they were not any good.