Liberal Economic Ideology

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A Liberal Economic Ideology is a macro-economic ideology that espouses free economic activity (labor is voluntary, capital is mostly in private hands, and production is coordinated in a decentralized way and motivated by profit).




    • QUOTE: Capitalism is a system where the means of production are owned privately and operated for profit. It is a system opened to new ideas, new firms and new owners where decisions on investment, production, trade and pricing are largely determined by market forces. This does not mean that the state has no role in capitalism. On the contrary, the state needs to create the appropriate regulatory and legal framework without which markets will not function properly. Also, the state needs to provide public goods and ensure that there is adequate physical and human infrastructure. Capitalism, also known as “free enterprise”, is …






  1. Ian Adams, Political Ideology Today (Manchester: Manchester University Press, 2001), 20.
  2. Brown, Wendy. Edgework: critical essays on knowledge and politics. Princeton University Press, 2005. p. 39


  • (Wikipedia, 2014) ⇒ Retrieved:2014-10-11.
    • Capitalism is an economic system in which trade, industry, and the means of production are largely or entirely privately owned and operated for profit. [1] [2] Central characteristics of capitalism include capital accumulation, competitive markets and wage labour. [3] In a capitalist economy, the parties to a transaction typically determine the prices at which assets, goods, and services are exchanged. [4] The degree of competition, role of intervention and regulation, and scope of public ownership varies across different models of capitalism.[5] Economists, political economists, and historians have taken different perspectives in their analysis of capitalism and recognized various forms of it in practice. These include laissez-faire capitalism, welfare capitalism, crony capitalism and state capitalism; each highlighting varying degrees rof dependency on markets, public ownership, and inclusion of social policies. The extent to which different markets are free, as well as the rules defining private property, is a matter of politics and policy. Many states have what are termed capitalist mixed economies, referring to a mix between planned and market-driven elements.[6] Capitalism has existed under many forms of government, in many different times, places, and cultures. Following the demise of feudalism, capitalism became the dominant economic system in the Western world. Capitalism was carried across the world by broader processes of globalization such as imperialism and, by the end of the nineteenth century, became the dominant global economic system, in turn intensifying processes of economic and other globalization. Later, in the 20th century, capitalism overcame a challenge by centrally-planned economies and is now the encompassing system worldwide, [7] with the mixed economy being its dominant form in the industrialized Western world. Barry Gills and Paul James write:

      The process remains uneven, but notwithstanding the continuing importance of national and regional economies today, global capitalism is undoubtedly the dominant framework of economics in the world. There are many debates about what this means, but across the political spectrum "capitalism" has become the taken-for-granted way of naming the economic pattern that weaves together the current dominant modes of production and exchange.

      Different economic perspectives emphasize specific elements of capitalism in their preferred definition. Laissez-faire and liberal economists emphasize the degree to which government does not have control over markets and the importance of property rights. Neoclassical and Keynesian macro-economists emphasize the need for government regulation to prevent monopolies and to soften the effects of the boom and bust cycle. Marxian economists emphasize the role of capital accumulation, exploitation and wage labor. Most political economists emphasize private property as well, in addition to power relations, wage labor, class, and the uniqueness of capitalism as a historical formation. Proponents of capitalism argue that it creates more prosperity than any other economic system, and that its benefits are mainly to the ordinary person. [8] Critics of capitalism variously associate it with economic instability, [9] an inability to provide for the well-being of all people, and an unsustainable danger to the natural environment. Socialists maintain that, although capitalism is superior to all previously existing economic systems (such as feudalism or slavery), the contradiction between class interests will only be resolved by advancing into a completely social system of production and distribution in which all persons have an equal relationship to the means of production. [10] The term capitalism, in its modern sense, is often attributed to Karl Marx. In his magnum opus Capital, Marx analysed the “capitalist mode of production” using a method of understanding today known as Marxism. However, Marx himself rarely used the term "capitalism", while it was used twice in the more political interpretations of his work, primarily authored by his collaborator Friedrich Engels. In the 20th century, defenders of the capitalist system often replaced the term capitalism with phrases such as free enterprise and private enterprise and replaced capitalist with rentier and investor in reaction to the negative connotations associated with capitalism.
  1. "Capitalism" Oxford Dictionaries. "capitalism. an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state." Retrieved 4 January 2013.
  2. Chris Jenks. Core Sociological Dichotomies. "Capitalism, as a mode of production, is an economic system of manufacture and exchange which is geared toward the production and sale of commodities within a market for profit, where the manufacture of commodities consists of the use of the formally free labor of workers in exchange for a wage to create commodities in which the manufacturer extracts surplus value from the labor of the workers in terms of the difference between the wages paid to the worker and the value of the commodity produced by him/her to generate that profit." London, England, UK; Thousand Oaks, California, USA; New Delhi, India: SAGE. p. 383.
  3. Heilbroner, Robert L. "capitalism." Durlauf, Steven N.and Lawrence E. Blume, eds., The New Palgrave Dictionary of Economics. 2nd ed. (Palgrave Macmillan, 2008)
  4. "an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market"
  5. Macmillan Dictionary of Modern Economics, 3rd Ed., 1986, p. 54.
  6. Stilwell, Frank. “Political Economy: the Contest of Economic Ideas.” First Edition. Oxford University Press. Melbourne, Australia. 2002.
  7. James Fulcher, Capitalism, A Very Short Introduction, “In one respect there can, however, be little doubt that capitalism has gone global and that is in the elimination of alternative systems.” p. 99, Oxford University Press, 2004, ISBN 978-0-19-280218-7.
  8. Friedman, Milton. Capitalism and Freedom. [Chicago]: University of Chicago, 1962.
  9. Krugman, Paul, Wells, Robin, Economics, Worth Publishers, New York, (2006)
  10. The Rise of Capitalism, 2011. Socialist Standard, no. 1284, August 2011.



  • (Hall et al., 2007) ⇒ Peter A. Hall. (2007). “The Evolution of Varieties of Capitalism in Europe.” In: Beyond Varieties of Capitalism: conflict, contradictions, and complementarities in the European economy








  • (Williamson, 1985) ⇒ Oliver E. Williamson. (1985). “The Economic Institutions of Capitalism." Simon and Schuster.








  • (Hume, 1758) ⇒ David Hume. (1758). “Essays: Moral, political, and literary.".
    • QUOTE: … Let us, therefore, rest contented with asserting, that two opposite vices in a state may be more advantageous than either of them alone; but let us never pronounce vice in itself advantageous. …