[Harucheonja] The Politics of Citizens <3>

Editor's NoteLiberalism values freedom as the highest principle and believes that social institutions should develop in ways that enhance freedom. A common misconception about liberalism begins with the failure to distinguish between 'Freedom' and 'Liberty.' Freedom simply means the absence of restraint or interference, the ability to act according to one's own will. In contrast, Liberty refers to a state where one's actions do not infringe upon the rights of others. In the political realm, freedom is a concept centered on individual liberty within social and legal boundaries, ensuring and expanding the freedom of others. This excerpt is taken from the section summarizing the concept and history of liberalism in the democracy textbook for adults, Political Science for Citizens. The text contains 1,028 characters.

The earliest discourse on liberalism dates back to 17th to 19th century Western Europe. Classical liberalism emphasized natural rights and economic freedom. It held that if individual freedom is maximally guaranteed, a desirable and rational social order would naturally form. The ideal state was considered a night-watchman state that protects individual freedom and property rights in areas such as national defense, diplomacy, and public security. The economic theories of British economists Adam Smith and David Ricardo were actively embraced. It was believed that when government intervention is minimized and market freedom is maximized, social wealth increases. The market operates on the principles of supply and demand, achieving optimal resource allocation and efficiency. However, it faced market failures such as public goods, information asymmetry, imperfect competition, and monopolies.

Social liberalism emerged in the 19th to 20th centuries to overcome the limitations of classical liberalism and address issues like wealth disparity, low wages, and unemployment. It opposed excessive market control and nationalization while supporting a market economy. However, it advocated for a larger government that takes more proactive measures to ensure individual freedom and equal opportunity, agreeing with welfare policies such as minimum wage, pension systems, health insurance, and universal education. Although philosophical critiques question whether individual freedom and social intervention can coexist, it remains one of the ideologies adopted by many countries and political parties today. Its economic foundation is based on the theories of British economist John Maynard Keynes. Keynesian economics holds that increasing government spending can create effective demand, eliminate unemployment, and achieve full employment. However, government failure can occur due to regulatory imperfections and favoritism by those in power, leading to inefficiency.

Neoliberalism arose in response to the stagflation of the 1970s, a period of simultaneous economic stagnation and inflation, challenging Keynesian economics. Neoliberalism advocates for free markets, free trade, tax cuts, deregulation, and labor market flexibility, and was adopted by the governments of Margaret Thatcher in the United Kingdom and Ronald Reagan in the United States. It can be seen as a revival of classical liberalism. However, while classical liberalism opposes government intervention outright, neoliberalism pursues ways for the state to guarantee market order.

－Im Chunhan, Political Science for Citizens, Pakyoungsa, 23,000 KRW