aoften capitalized: a movement in modern Protestantism emphasizing intellectual liberty and the spiritual and ethical content of Christianity
b: a theory in economics emphasizing individual freedom from restraint and usually based on free competition, the self-regulating market, and the gold standard
c: a political philosophy based on belief in progress, the essential goodness of the human race, and the autonomy of the individual and standing for the protection of political and civil liberties; specifically: such a philosophy that considers government as a crucial instrument for amelioration of social inequities (as those involving race, gender, or class)
dcapitalized: the principles and policies of a Liberal party
Political and economic doctrine that emphasizes the rights and freedoms of the individual and the need to limit the powers of government. Liberalism originated as a defensive reaction to the horrors of the European wars of religion of the 16th century (seeThirty Years' War). Its basic ideas were given formal expression in works by Thomas Hobbes and John Locke, both of whom argued that the power of the sovereign is ultimately justified by the consent of the governed, given in a hypothetical social contract rather than by divine right (seedivine kingship). In the economic realm, liberals in the 19th century urged the end of state interference in the economic life of society. Following Adam Smith, they argued that economic systems based on free markets are more efficient and generate more prosperity than those that are partly state-controlled. In response to the great inequalities of wealth and other social problems created by the Industrial Revolution in Europe and North America, liberals in the late 19th and early 20th centuries advocated limited state intervention in the market and the creation of state-funded social services, such as free public education and health insurance. In the U.S. the New Deal program undertaken by Pres. Franklin D. Roosevelt typified modern liberalism in its vast expansion of the scope of governmental activities and its increased regulation of business. After World War II a further expansion of social welfare programs occurred in Britain, Scandinavia, and the U.S. Economic stagnation beginning in the late 1970s led to a revival of classical liberal positions favouring free markets, especially among political conservatives in Britain and the U.S. Contemporary liberalism remains committed to social reform, including reducing inequality and expanding individual rights. See alsoconservatism; individualism.