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Liberalism and the Industrial Revolution

Setting the Stage: 1815 and the Triumph of Conservatism

The year 1815 is a pivotal point, marking the temporary triumph of
conservatism over liberalism.
This period follows the defeat of Napoleon and the Congress of Vienna, which
established conservative dominance in Europe for approximately a century.

Liberalism Before and After Revolution

Liberalism wasn't new in this period, but its understanding and expression
were evolving.
Conservatism was already present, supported by monarchs and figures like
Edmund Burke.
The American and French Revolutions significantly impacted both ideologies:
Liberalism gained a serious ideological rival.
Conservatives had to confront the potential overthrow of monarchy,
aristocracy, and traditional societal norms.

Core Tenets of Liberalism through Locke's Philosophy

Key figures like John Locke are central to understanding liberalism.

Locke was an English theorist associated with the 1688 Glorious Revolution.

He championed the idea of a Constitutional Monarch with limited power and

the existence of pre-existing natural law and individual rights:

Individual rights to life, liberty, and property are paramount.

Locke envisioned a social contract, formed through reason and sociability, to

create a government serving the public interest.

Property Rights and Critiques of Liberalism

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Framing liberalism solely around Locke's idea of the right to property may be
too reductive.

The right to property is essential for living and flourishing.

Focusing solely on property rights is often a starting point for critiquing

liberalism, arguing that it leads to:

Bourgeois hierarchy
Inequality

Critics argue that liberalism can be greedy, selfish, and individualistic, enabling
unscrupulous behavior and leading to a new aristocracy of the wealthy.

Addressing these issues might require interfering with the right to property.

This disagreement becomes a point of contention between Liberals and the

more radical Socialists.

The Spread and Testing of Liberal Ideas

Liberal ideas, emphasizing individual rights, equality, and freedom, spread
throughout the 18th century.
These ideas became animating principles behind the American and French
Revolutions.
Liberal concepts were tested in the Glorious Revolution of 1688, leading to a
stable dynasty under constitutional monarchs.
The American Revolution, despite challenges, inspired other nations, including
Haiti and South American countries.

The French Revolution: A Stress Test for Liberalism

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The French Revolution faced more difficult circumstances than previous

revolutions due to:

Strong conservative resistance

Monarchical opposition
Internal dissension

Events like the Terror questioned the applicability of liberal ideas and their
potential negative consequences.

By 1790, even moderate liberal ideas faced contentious and challenging

situations.

Liberalism's Spread and the Reaction to It

The principles of Locke and Montesquieu were not widely accepted by existing
states like England and America. Revolutionary France, however, spread these
principles by force, surprisingly winning wars against its neighbors.

Victorious French armies, led by figures like Napoleon, got rid of existing power
structures in conquered territories:

Deposed monarchs
Abolished aristocracy
Instituted new legal codes

These actions swept away many institutions of the ancien régime, the old
monarchical conservative structure.

However, these changes created losers, such as those who had their estates
confiscated or lost hereditary privileges. This led to a strong association in Europe
between liberalism and warfare.

Radical Liberal Ideas and Napoleon

Radical liberal ideas went beyond what was instituted in France, especially after
Napoleon consolidated power.

While Napoleon was overall a liberal figure, he was in the tradition of the
enlightened despot:

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Interested in reform
Open to talents
Abolished aristocracy
Ended the state role for the church

However, he restricted free speech and opposed elections and republics, ultimately
becoming Emperor.

Pamphlets and the Debate in England

In England, a robust debate took place in the 1790s through pamphlets, the era's
version of Twitter. These quickly printed pamphlets responded to recent events,
offering takes and explanations. Thomas Paine's Common Sense attacked England's
relationship with the American colonies.

Edmund Burke, initially a left-leaning figure, surprised many by opposing the

revolution and supporting the monarchy. His book, Reflections on the Revolution in
France, became a foundational statement of conservative views.

Edmund Burke's Conservatism

Burke's conservatism is based on a skepticism of individual wisdom. He argued that
societies are the result of gradual evolution and adaptation, tested over time.

Societies, due to their longevity, have a "seal of approval" demonstrating

that they work.

Burke believed that the default state is disaster, and attempts to change things
drastically can lead back to chaos and anarchy. He criticized idealistic reformers,
arguing that no individual is as wise as society collectively.

Critique of Revolutions
Burke's warnings seem to be borne out by the experience of the 20th century, where
many revolutions had disastrous outcomes. Even when overthrowing bad regimes,
revolutionaries often struggled to establish successful new institutions, resulting in
Bloodshed and chaos.

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Responses to Burke's Reflections on the

Revolution in France

Mary Wollstonecraft's Critique

Mary Wollstonecraft, better known as a feminist author and the author of A
Vindication of the Rights of Women, responded to Burke's Reflections on the
Revolution in France with her pamphlet Vindication of the Rights of Men.

Rejection of Burke's Vision: Wollstonecraft rejected Burke's pessimistic view of

societal change and his defense of hereditary power.
Hereditary Power: Burke defended institutions of hereditary power, where
power is passed down through lineage, including hereditary aristocracy and
monarchy. He believed in hereditary wisdom, where people gain the wisdom to
govern through tradition.
Rational Critique: Wollstonecraft argued that society's institutions should be
subject to rational critique. She believed that it is necessary to observe illogical,
unfair, and dysfunctional aspects of society and change them.
Critique of Inheritance: Wollstonecraft scorned the idea that inheritance of
power and wealth should determine who makes decisions in society, noting the
prevalence of incompetent wealthy individuals.
Vision of Society: Wollstonecraft envisioned a radical, peaceful agrarian
anarchism with cooperative organization and the abolition of hierarchy.

Thomas Paine's Contribution

Thomas Paine also responded to Burke with his book Rights of Men, which was a
huge success.

Similar Visions: Paine shared similar visions with Wollstonecraft.

Radical Wing of Liberalism: Paine developed the radical wing of liberalism,
emphasizing that individuals cannot truly enjoy their rights if they live in
poverty and lack access to wealth or food.
Social Welfare: Both Wollstonecraft and Paine emphasized the importance of
social welfare, including freedom from want and need, as the basis for other
freedoms.

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Impact and Repression

These radical ideas, including the liberation of women, posed a threat to the British
establishment.

Fear of Liberalism: English authorities feared the spread of liberalism and the
overthrow of the monarchy, leading to a crackdown.
Treason and Sedition Acts: Treason and Sedition Acts were passed, resulting
in arrests and censorship.
Shift Away from Liberalism: England, once a liberal nation, regressed from
liberalism due to the perceived dangers of these ideas and the events in France.

Context is Key!
These ideas weren't just academic discussions but deeply concerning issues for both
authors and audiences.

Divergent Visions of Society

The 19th century was characterized by two opposing visions of human society,
embodied in actual states and debated in the public sphere. These visions had strong
disagreements, particularly concerning morality.

The Basis of Morality

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Conservatives: Based their positions on religion, specifically Christian faith,

which provides guidance on how to live and what to value. Key aspects include:
The dangers of sin
The importance of living virtuously
The role of religion in the state and everyday morality
Liberals: Sought to derive morality from rational principles, independent of
religious revelation.
Utilitarianism: A very influential moral framework during this time.

A philosophy that suggests the understanding of human

welfare is rooted in pleasure and the absence of pain.

The goal is to maximize worldwide pleasure and minimize pain,

influencing views on government and the economy.
Classical liberals believed free trade would maximize welfare.

Disagreement Over Pleasure

Christianity traditionally holds a suspicious view of pleasure, emphasizing love of
God over sensual pleasures like food and sex (gluttony and lust).

Liberals were thought to licentiously embrace Hedonism.

Hedonism: The ethical theory that pleasure is the highest good and
proper aim of human life.

This disagreement manifests in differing views on issues like extramarital sex.

Liberals may see it as acceptable between consenting adults if pleasurable, while
conservatives view it as a sin.

Mary Wollstonecraft lived out her liberal principles by having a relationship outside
of marriage, considered radical in the 1790s.

Divergent Views on Government

Purpose of Government

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Liberals: Believe that government is established by a social contract to serve

the common good, typically embodied in a constitution like the US Constitution
and Bill of Rights.
Conservatives:
Do not necessarily accept that the purpose of government is to maximize
utilitarian welfare.
Believe that government should serve the public interest in a religious
context, defending and promoting the one true faith.
See the role of government as trying to get the population to live
according to the one true faith.

Limitations on Rulers
Old Roman idea of the ruler as the source of the law, therefore above the law.
The ruler as being limited by customs, traditions, and the demands of
Christianity, meaning a Christian ruler cannot do unchristian things.

Economic Disagreements
Until radical economists introduced new ideas about markets, the standard view was
that rulers should carefully manage the economy by:

Granting monopolies
Regulating trade
Maximizing exports
Minimizing imports
Concentrating wealth in the country

The prevailing wisdom was that the economy grows under careful and prudent
management, rather than being left to itself.

Freedom of Speech
Liberals advocate for freedom of speech, contrasting with conservatives who view
speech with suspicion due to its potential for falsehood and harm.

Conservatives believe rulers have a duty to guard the souls of their flock, justifying
censorship of dissenting religious or political views. They question the benefit of
allowing criticism of the government, fearing it could lead to chaos and revolution.

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Liberals, however, champion free speech, believing that the truth will prevail in open
discussion, leading to progress and new knowledge.

The marketplace of ideas is the concept that the truth is stronger than
falsehood and will win out in discussion. It suggests that progress and
learning occur by allowing the dissemination of diverse ideas, even those
not widely accepted.

Liberals often cite the example of Galileo to illustrate the dangers of censorship,
arguing that suppressing ideas, even if unpopular, can hinder scientific progress.

Aristocracy
While many liberals advocated for freedom of speech, their views on aristocracy
varied. Figures like Montesquieu and Locke found aristocracy acceptable. Opposition
to hereditary privilege grew with the American and French Revolutions, leading to
calls for its abolishment, including in England.

Progress and Reform

Liberals embraced progress, trusting in reason to guide improvements and reforms,
even advocating for violent revolution if necessary.

Conservatives, conversely, saw the human mind as fallible and emphasized reliance
on the authority of the church, religion, and tradition.

The Triumph of Conservatism

Following Napoleon's defeat in 1815, European powers, under the Congress of
Vienna, sought to restore the old order.

Their aims were to:

Abolish small territories

Reinstate monarchies
Suppress republicanism and liberalism
Establish a conservative dominance

The European powers recognized their shared interests and common threats, forming
alliances to prevent liberal uprisings and maintain stability.

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Suppressing Liberalism
Liberalism was suppressed across Europe. England curtailed freedom of speech
through anti-sedition laws, and republicanism was quashed in France. Emperors
throughout Europe dictated policy, signaling a resounding triumph of conservatism.

Klemens von Metternich, an Austrian diplomat, played a key role in establishing this
new order, aiming to prevent wars between monarchies and suppress liberal
demands.

Concessions and the New Status Quo

Despite their ascendance, monarchies could not completely reverse the changes
brought by the revolution. In France, the monarchy accepted a constitution and a
parliament with real powers.

Tsar Alexander I of Russia saw the victory over Napoleon as a divine defense of
Christianity against secularism, embodying the ideological underpinnings of the new
conservatism.

Divine Monarchy and Social Change

The ideology of divine monarchy posited the monarch as a benevolent father figure,
mirroring God's role to the world. This vision of rulership, heavily promoted by the
Orthodox Church in Tsarist Russia, faced challenges due to societal shifts beneath
the surface.

Social Transformations and Emerging Classes

Even in less rapidly transforming societies like Russia, global social changes exerted
pressure. Aristocrats saw their relative power diminish as the bourgeoisie gained
influence. Urban working-class individuals in factories and trades, influenced by
liberal ideas, grew in number.

Bourgeoisie: the middle class, typically with reference to its perceived

materialistic values or conventional attitudes.

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Influential Ideas and Class Interests

Working Class: More radical ideas, aligned with figures like Walstonecraft and
Paine, resonated with the working class, who prioritized social welfare, job
security, fair trials, and freedom from oppression.
Elite Liberals (Bourgeoisie): Primarily sought liberalism for economic
advantages and political empowerment.
Intelligentsia: Desired openness to talent, freedom of speech, and societal
rationalization.

These popular movements persisted due to the enduring presence and class interests
of these social classes.

Conservative Arguments Against Reform

Conservatives voiced principled objections to democracy, echoing arguments from
figures like Plato:

Democratic politicians are prone to corruption and pandering.

Ordinary people are uneducated and lack political or economic understanding.

While such arguments may not be widely embraced today, they resonated with a
broad audience at the time, including conservative segments of the peasantry and
ordinary people attached to tradition and skeptical of newfangled ideas like equality
and representation.

Growing Social Strain and Conservative Concessions

A growing social strain emerged as more people became deeply unhappy with the
status quo, which remained largely inflexible. Conservatives, facing mounting
pressure, were willing to make certain concessions.

England: Ultimately compromised significantly, leading to universal suffrage

and other liberalizing changes.
Russia, Austria, Prussia/Germany: Largely resisted substantial changes,
particularly after the assassination of one of the Alexanders or Nicholas. These
regimes focused on maintaining the status quo while attempting to modernize
their economies and militaries.

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Political Orientations of Social Classes

It is important to recognize that not all people in each class shared the same political
orientation:

Social Class Political Tendencies

Aristocrats Could be radical (supporting anarchy) or conservative

Merchants/Professionals Could be conservative
Mostly focused on their own lives, seeking more land and
Peasants
less oppression

Emergence of Civil Society

Increased literacy and new technologies facilitated mass communication and the
emergence of a civil society, which is defined as:

a unified space in society where people can participate by writing, reading,

and expressing their opinions.

Political and social engagement became more common, with more people
participating in marches, joining societies, contributing to political discussions, and
distributing pamphlets. Newspapers grew in popularity, and salons became less
aristocratic.

Equality and Social Change

The Rise of an Engaged Citizenry

People are meeting, discussing, and becoming more politically aware.
This is happening organically, not directed by rulers.
This engaged citizenry is ready to act when the circumstances allow.

Strands of Equality in Liberalism

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The concept of equality was a major point of contention.

There were three main strands of equality in liberalism:
Equality between peasants and aristocrats.
Equality between men and women.
Equality between slaves/different races and free people.

The Role of Religious Activism

The push for equality was not limited to secular radicals like Thomas Paine.
It was a broad-based movement involving religious activists as well.
Groups like the Quakers promoted equality and freedom as part of their faith.

Quakers: A denomination with an individualistic, liberal version of

Protestantism.

Resistance to Women's Equality

Equality for women faced the most resistance.
Reforms like women's suffrage happened later, around World War I, while
England abolished slavery earlier in the 19th century.

Abolishing Aristocracy
Desire to abolish aristocracy was contentious, especially to aristocrats.
Aristocrats mostly resisted giving up formal power.

Equality of Opportunity vs. Equality of Outcome

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Liberals had different views on equality:

Right-leaning liberals: focused on equality of opportunity.
Left-leaning liberals: focused on equality of outcome and social welfare.
Criticism arose that liberals were too tied to the status quo and existing
property relationships.
Support for liberalism came from the bourgeoisie, who were content with their
contracts with workers.

Bourgeoisie: The middle class, typically with reference to its

perceived materialistic values or conventional attitudes.

Workers, however, often disagreed, leading to the growth of the labor

movement.
Moderate liberals were comfortable with workers protesting against aristocrats
but less so with calls to redistribute land or nationalize factories.

Disagreements on Women's Rights

Even within the liberal movement, there was disagreement about women's
rights.
James Mill, father of John Stuart Mill, believed liberalism didn't necessitate
equality for women.
He argued that women's interests were included in those of their fathers or
husbands.
John Stuart Mill, however, argued for women's suffrage on the same terms as
men.
Liberals often went to great lengths to avoid accepting the conclusion that
women should have equal rights.

Crackdowns on Liberal Ideas

Despite growing support for liberal ideas, authorities were willing to use force
to suppress them.
The Peterloo Massacre occurred at a rally for suffrage for adult men in
England.

Peterloo Massacre: A brutal suppression of a peaceful protest for

voting rights for all adult men in England.

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Resurgence of Anti-Liberal Ideas

There is a resurgence of anti-democratic and anti-feminist arguments.
Public intellectuals, mostly on the fringes, are advocating for a return to pre-
liberal ideas.

1848 Uprisings and the Spread of Liberalism

Dissatisfaction and Revolt

The bubbling resentment and dissatisfaction with the conservative status quo in
Europe boiled over in 1848. This wave of unrest began with a revolution in France,
which successfully overthrew the restored Bourbon monarchy and briefly established
a republic. News of this revolution spread rapidly across Europe, galvanizing liberals
who had been biding their time.

Key Uprisings
Italy: An attempt to throw off Austrian domination, characterized by liberal
nationalism. The goal was a unified Italian nation where people could freely
express themselves, practice their chosen religion, engage in trade, and have
political representation, unlike under the Austrian Empire.
Austria: Two separate rebellions occurred. One was a liberal political rebellion
in Vienna, driven by students and workers. The other was a nationalist rebellion
in Hungary, seeking a free Hungary.
Russia: Russia did not experience any uprising. Instead, it suppressed the
Hungarian rebellion in Austria.
Poland: Poles attempted to rise up, though parts of Poland were technically
within Russia.
German Provinces: A liberal nationalist assembly attempted to create a unified
German state. They drafted a constitution and offered the position of emperor
to the King of Prussia, who declined.

Outcomes and Concessions

Outside of France, most of these revolutions failed and were suppressed. However, in
some cases, the rebels managed to gain concessions:

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Austria: Some liberalization occurred.

Hungary: Took the first step towards becoming the Austro-Hungarian Empire,
with Hungary gaining a fair amount of autonomy and power for the Hungarian
ethnic group.

The Role of Nationalism

These liberal uprisings were closely tied to nationalism, which motivated people to
fight for the unity and autonomy of their respective nations (Italian, Hungarian,
German). In 1848, nationalism and liberalism often worked together, with many
liberals also being nationalists.

Economic Liberalism and Global Influence

Conservative Monarchs and Economic Reform

Conservative monarchs were in a dilemma: they wanted to maintain the social status
quo while also industrializing to increase wealth and power. They were open to
technocratic reform and some liberal economic and legal reforms, as long as they
didn't threaten the privileges of the nobility.

England's Influence
Classical liberalism became more influential, largely due to the power of England in
the 19th century. After defeating Napoleon, England had a free hand in the world's
oceans and took several major actions:

1. Promoted free access to the seas by fighting against pirates and ensuring
freedom of trade.
2. Used its naval power to push into overseas markets (e.g., Opium Wars and the
opening of China).
3. Used its naval power to destroy the slave trade, regardless of the wishes of
other nations like Brazil, Venezuela, and the United States.

Mercantilism vs. Classical Economics

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The old economic view was mercantilism, which focused on accumulating visible
wealth like gold and silver.

Mercantilism is basically a fairly Common Sense way of thinking about

trade where it's all about accumulating visible wealth like gold and silver.

In contrast, classical economics advocated for free trade and open markets.

Free Trade and Classical Liberalism

Mercantilism and Trade Control

Mercantilists believed in controlling trade to favor domestic production. They aimed
to keep out foreign goods, especially luxuries, to prevent citizens from squandering
their wealth. Tariffs were seen as a way to protect domestic industries. They viewed
trade in competitive terms, with the idea that one party's gain was another's loss.

Classical Liberal Critique of Mercantilism

Classical liberals, like Adam Smith and Ricardo, challenged this view. They argued
that trade is special because it can make both parties wealthier without creating
anything new.

Wealth, according to them, is not just about the amount of stuff in the
world but also about the welfare generated by that stuff.

Different distributions of goods can generate different amounts of welfare.

Example:

Someone in Sri Lanka (Salon) has more cinnamon than needed.

Because there's a surplus, trading it for almost anything makes them better off.
Conversely, someone elsewhere in the world who wants cinnamon benefits
from trading something they value less than cinnamon.

This leads to mutual gains from trade, where everyone wins and the world becomes
wealthier. The only exceptions are trade by force or mistaken trades where someone
doesn't like what they get.

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Free Trade and Preferences

Trade is most efficient when it reflects people's preferences. Allowing people the
freedom to express those preferences through trade maximizes the wealth gains.

Free Trade: People being able to buy and sell precisely what they want as
their preferences dictate.

Classical liberal economists argued that the freer the trade, the wealthier society will
be. It's like a "free lunch" because it reallocates the same goods in a more efficient
way.

Economic Growth and Competition

Free trade and markets facilitate the growth of the economy. When there's an
opportunity to make money, people will take it if they're free to do so.

An opportunity to make money indicates an unmet need in society.

Meeting these needs makes society better off. Entrepreneurs and merchants seeking
profits by meeting unmet needs drive overall societal welfare.

The Invisible Hand

Liberal economists saw free markets as a mechanism to improve overall social
welfare. Adam Smith's Wealth of Nations illustrates this with the concept of the
invisible hand. People selfishly trying to make money inadvertently promote the
public interest.

Invisible Hand: The idea that the selfish pursuit of profit leads to an
overall increase in welfare and can maximize welfare.

As individuals direct their capital to support domestic industry and produce goods of
the greatest value, they increase the annual revenue of society.

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"Every individual necessarily labours to render the annual revenue of the society as
great as he can. He generally, indeed, neither intends to promote the public interest,
nor knows how much he is promoting it... he intends only his own gain, and he is in
this, as in many other cases, led by an invisible hand to promote an end which was no
part of his intention."

Perfect Free Market and Welfare Maximization

Economists demonstrate that a perfect free market allocates goods to maximize
welfare. Prices move to an equilibrium where any change would make people worse
off.

Competition and Productivity

Competition in free markets promotes not just efficient allocation but also capital
investment, leading to productivity increases and growth. This drive to profit and
investment is seen as a key factor behind the Industrial Revolution. In England, free
markets and a stable economic landscape allowed people to direct capital to
productive endeavors, leading to industrialization.

Barriers to Industrialization
Barriers to industrialization in places like Russia, Austria, and the Ottoman Empire
included the lack of free markets and a social structure that didn't reward
entrepreneurship. The Russian aristocracy, for example, lacked entrepreneurial
ambitions.

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