The Concept of Limited Government
What role should government have in people's lives?
The French and American Revolutions occurred for several reasons. One of the most significant was a reaction to the role government had in the lives of the people. The French government and the British government that ruled the U.S. prior to its independence
were based on a class system; they were governments that taxed their people heavily without allowing them any significant role in return.
Remember that ideologies have both political and economic aspects. Liberalism advocates a greater role for individuals in both the power structure and the economic structure of a nation.
Political Classical Liberalism
The revolutions in France and the United States saw a shift in the power base of these two nations. Instead of political power being held by the monarch and a handful of noblemen, it was invested in citizens who were empowered to influence the actions
of government by voting for representatives. It took longer for this power to be equally shared by all men and women, but this was a start on the road to more power in the hands of the individual. This shift occurred gradually in all nations of Europe
and, over a longer period of time, in most of the world today.
Economic Classical Liberalism
A desire to limit the power of the government in economic affairs of the nation is a key principle of classical liberalism. Adam Smith's idea of the invisible hand led to the development of free markets and encouraged entrepreneurship. Under classical
liberalism, governments taxed less, provided fewer advantages to local businesses and encouraged individuals to own and operate almost all programs and services in a country for their own profit.
Concept of Limited Government
Because many societies like France and United States rid themselves of an absolute monarch, classical liberals supported the notion of limited government involvement both politically and economically. The government's role is only to provide public security
and essential services such as road maintenance and primary education. You will consider the changing role of government in the lives of its citizens in the next unit.
