Compare and Contrast Liberalism and Socialism - Essay Example

COMPARE AND CONTRAST LIBERALISM AND SOCIALISM Liberalism and Socialism are two different political ideologies.  Liberalism is derived from a Latin word and it means belief in equal rights for all mankind, plus their liberty by every means (Song 45) while socialism is more related to a society on a whole such as social management and cooperation (Oxford English Dictionary). Socialism is more related to social relations and equal power for all, for example, equal relations in the management of political and economic situations (World Socialist party). The word “socialism” mainly describes an economic system; the system which favors rules within which wealth is equally distributed among the appropriate people who claim to have a share on the wealth or on the resources they consume. Liberalism on the other hand is a philosophy which is linked or associated with ideas like the individual liberty and equality. Liberalism started in the 17th century though some argue that it has roots much earlier than that. Marcus Aurelius, the emperor of Rome recognized a government which gave freedom of speech and equal rights to all its citizens (Antoninus 3). It is often difficult to define liberalism because of its diversity and different forms (Young 24) but liberalism has attracted both, support and criticism from people with various thoughts and ideologies. In Northern America, liberalism most nearly refers to social liberalism in contemporary politics. The Liberal Party is pointed to be a modern-liberal party (Puddington 142). Liberalism in The United States of America traces its history when Franklin Roosevelt was the president of the country. The New Deal  initiated by Franklin Roosevelt influenced many American presidents in the future including John F. Kennedy. Kennedy was a liberal himself and he said, "a liberal is someone who looks ahead and not behind, someone who welcomes new ideas without rigid reactions and someone who cares about the welfare of the people" (Alterman 32). When Barack Obama won the presidential elections in the year 2008, the economic ties led to the re establishment of social liberalism (Wolfe xiv) In the late 20th century, the “post industrial economy” created doubts among many about socialism which was in response to the industrial capitalism. During this era, information technology was given a higher bar than labor and material. Because of the doubt, many politicians adopted a “third way” which would preserve socialism and prevent the class based politics. Politicians who worked towards the promotion of socialism and hence the development of industrial growth includes Tony Blair, Bill Clinton and Wim Kok. (Ball & Dagger). The foremost principle of liberalism is individual freedom. This freedom must be exercised in all phases of life as well as under all political and economic conditions. Socialism on the other hand presses upon an individual’s sociability. It minimizes competition and increases cooperation. Some socialists claim that when humans exploit other humans, the reason for poverty emerges through selfish motives and self interests. Thus, socialism is extremely important for the existence of markets and institutions as it promotes change. With respect to socialism, the role of the government is to make sure that the wealth is being fairly distributed among the masses. Socialism’s most important principle will only be achieved when all the workers of a state will have the same opportunity for economic equality. The relationship between socialism and liberalism is not certain. Socialism began in the 19th century with some strong ideologies and by the writings of Marx. Like liberalism, socialism also broke into many movements after it was found (Grigsby 119). Karl Marx did not accept the fundamental aspects of liberalism and also hoped to erase the differences between an individual and the society (Koerner 9). The allocation of resources used towards the making of useful products is socialism. The commodities or goods are then distributed through the markets (Economic theories). Socialism has many forms such as Fabians, cooperate movement, syndicalism and anarchism. There are many forms of socialism. The main models, which can be found in various permutations, include representations of socialism as (Spicker). Austrian economists were liberalism greatest defenders in the twentieth century. These included Ludwig and Hayek. In the years from 1920s to 1930s, they both engaged themselves over the issue of the feasibility of liberalism versus socialism. They understood the fact that the principles of liberalism did not provide any economic point of view. The principles of liberalism were founded on private property and exchange. As socialism lacked in private ownership, the prices of goods did not indicate the scarcity of resources in terms of socialism. Peter Boetteke and Peter Leeson have said in their article on Liberalism and socialism that liberalism works to the fullest when all the individuals are assumed to be benevolent with each other. This is not all the time applicable because self interested people are not rare in the market. Therefore, some classical economists have shown that even in the case of a society which is populated by self-interested individuals, the market would make sure that the desires of the people or consumers would be met without problem. The promotion of a society even when it is filled with selfish individuals is not hampered. This is illustrated by Smith’s famous invisible-hand postulate. Smith stated in the wealth of nation, “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner but from their regard to their own interest. We address ourselves, not to their humanity but to their self love” (Smith 26–27). Smith understood the fact that even when men are selfish, the economic liberalism proves to be peaceful leading to social cooperation and hence increased productivity (Boetteke & Leeson 100-103) Liberalism which the American founders practiced was more of a conservative style; it had limitations on the people of that time but as the industrial capitalism gradually grew, a good society came into being by assuring the right of people and their freedom. At some most important moments, the liberalism of the progressive party and the “New Deal” era were indeed influenced by socialism. The market needed to be moderated by for economic stability and its efficiency; something which the new dealers understood quite well (Kuttner). In general, if the principles of liberalism are studied, it can be understood that liberalism does not conflict with socialism on a whole. Let me detail this fact out with respect to economic basis. The claims of the Liberal party have always been that of a progressive party in terms of political and social terms. This may be regarded as one of the negativities of liberalism as the party must come into context with socialism. Like liberalism, socialism also aims at the freedom of an individual but then why do people believing in liberalism have often contradicted with socialism? The reason lies in the answer of individual liberty versus liberty of one’s private property. The liberty of private property was cared more than the liberty of an individual. The liberal party struggled for the middle classes and had to fight against those who barracked the free acquisition of wealth of an individual (Bax 67). One of the most prominent philosophers’ includes John Locke. He is mostly associated with his work regarding capitalism. John has pressed upon the fact that men are free by nature and all men have equal rights but in order to ensure stability, peace and security of life and property, they have to transfer some of their rights to their respect governements. He illustrated a state of nature that is a hypothetical illustration which explains how men would function without a state (Tuckness). People who believe in equality and liberty promote socialism and liberalism. Through this, people can attain equal opportunities to prosper and maximize their potentials in a society. If individual liberty or an opportunity to socialize through equal terms is absent, then it would be difficult for industries to develop because there would be no platform for justice. Many socialists point out that capitalism has become obsolete in distributing wealth effectively among the masses (Who). They stress that capitalism concentrates both wealth and power within a small system or society, which in turn produces an unequal opportunity for individuals and industries to develop themselves. (Ball & Dagger). A Socialist, in contrast to a liberalist recognizes the contradiction between individualism in personal property and the individualism which abolishes private property. A socialist realizes that he is merely a puppet of economic forces which are usually beyond his control. Moreover, he also realizes that pure freedom for an individual lies in the freedom of the society as a whole. When certain individuals become selfish and infects the production of goods to the extent that production and distribution of goods ceases in the market, then that is against the principles of socialism (Bax, 71). If we believe in liberalism, then we should recognize our individual liberty in terms of economics, freedom of speech and politics. Individual liberty is very important for the uplift of us as the right to say in a government or a society is essential. Liberty is every body’s basic right and liberalism supports this fact. A profound change in people and their relationships is ought to come in terms of liberalism and socialism. When we work in an organization, we have to shift our self interest to ‘mass interest’ through which we can increase production and bring prosperity to the society on a whole. The changes in people and their relationships are not confined to economics, it is beyond that and covers every aspect of life. As an individual, I think we have a strong role towards our selves, and as well as towards the society we live with. Business organizations and industries have to realize to work for the good and rights of all people and not just for their own self interest. This is the only way through which our economy can prosper and our freedom can be satisfied. We should be more involved in activities related to the interest of the society. Just as we maintain healthy relationships with our families, we should have healthy relations with respect to freedom, economy and politics with others as well to bring about liberalism and socialism to their fullest of abilities. Socialism and liberalism would allow for personal liberty, equal rights and the distribution of wealth by equal means in a society. This will in turn insure a positive development of industries and a n individual. WORKS CITED: Alterman, Eric. Why we are Liberals. 2008. Antoninus, Marcus Aurelius. The Meditations of Marcus Aurelius Antoninus. New York: Oxford University Press. 2008. Ball, Terence & Dagger, Richard. Socialism. Encyclopedia of Britannica. Bax, E.Belfort. Liberalism versus Socialism. Outlooks from a new standpoint. 1891. Boetteke, Peter J & Leeson, Peter T. Liberalism, Socialism, and Robust Political Economy. Journal of Markets and Mortality, Vol 7. 2004. Economic: quantity directed socialism. Retrieved from economictheories.org. Grigsby, Ellen. Analyzing Politics: An Introduction to Political Science. Florence: Cengage Learning. 2008 Jensen, Pamela Grande. Finding a new feminism: rethinking the woman question for liberal democracy. 1996. Koerner, Kirk. Liberalism and its critics. Oxford: Taylor & Francis. 1985 Kuttner, Robert. Liberalism, Socialism and democracy. 2005. Oxford English dictionary. Oxford university press. Puddington, Arch. Freedom in the World: The Annual Survey of Political Rights and Civil Liberties. 2007. Smith, A. An Inquiry into the Nature and Causes of the Wealth of Nations. 1776. Song, Robert. Christianity and Liberal Society. Oxford: Oxford University Press. 2006 Spicker, Paul. The politics of welfare. Tuckness, Alex. Locke's Political Philosophy. The Stanford Encyclopedia of Philosophy (Fall 2011 Edition). Who, Dr. A childish fancy. World Socialist party.2008. Wolfe, Alan. The Future of Liberalism. New York: Random House Inc. 2009 World socialist party U.S. The alternative to capitalism. Read More