As initiated Liberalism Today afordable that lets you achieve financial freedom and economic independence

Only the educated are free. Epictetus, Greek philosopher of the Stoic school.

Fear is the result of ignorance. Anonymous.

A bit of history to "know that it is" .- Economic Liberalism.

Economic liberalism is the economic system or economic response conceived and developed during the Enlightenment.

The Enlightenment was a purely European school of thought that developed in France and England since the early eighteenth century to the beginning of the French Revolution, although in some countries continued during the early nineteenth century. The premise was "light all the light of reason."

Economic liberalism was the economic response of this philosophical movement.

This answer was enacted in full by Adam Smith and David Ricardo, and basically calls for minimal obstruction or interference by the state in the economy.



Smith and Ricardo, announced that economic freedom and free enterprise lead to a more egalitarian society and the indefinite increase of prosperity, and in return do otherwise would lead inevitably to the decline of a nation.

The spontaneous order, the natural regulator of the social mechanism, would be generated by the "invisible hand" that leads individuals to follow their particular bias and selfishness, ancestral in the human species, and this would be ultimately responsible for final balance and stabilization of the system. Usually this is summarized in the French phrase Laissez faire, laissez passer (let go, let go), which nevertheless is the motto of physiocracy.

Physiocracy or physiocratic was a school of economic thought in the eighteenth century founded by François Quesnay, Anne Robert Jacques Turgot and Pierre Samuel du Pont de Nemours in France. This alleged economic speculation, fifty years before Smith, the existence of a natural law by which the proper functioning of economic systems, would be secured without government intervention or any other power of the state and also outside intervention would be extremely harmful to systems. Physiocratic theory, was designed based solely on the major agricultural production in a given society.



Historical Background. Feudal System.



In the Middle Ages, society was composed of Mr. Feudal or landowner. In this regime, wealth was constituted by the possession of the land, the serfs tilled the land and yielded an amount to the owner (feudal lord) in exchange for military protection.

The political system capable of supporting this was the absolute monarchy, the king and the nobility had the power in all territories, the vassals who lived in them were served in exchange for protection. In turn, religion (Catholic Church) stated that kings derived their power by divine command and dirimía or solved with this wonderful reason any attempt to delegitimize the issue of power principle.

Then, little by little, there will the bourgeoisie (shopkeepers, artisans, free people), which are those which originate real change to the modern age. It was the bourgeoisie, concentrated in cities, the main star of this historic process. However, the fact that, nevertheless, ruled out any further responsibility of government, caused the appearance in their midst of a movement Examiner feudal nature of society and the dominant state. There was thus, in a lawsuit that lasted centuries and led to a trend of ideological, political and economic freedom dogmatized on the total of the individual and championed the radical limitation of the powers of the state. Moreover, liberalism dimension limitation and sustained permanent purview of the state, argued the defense of free competition in the economic and enunciation of the fundamental rights of individuals, among whom figured prominently freedom of ideas, religious beliefs and the free expression thereof. Liberalism became the philosophy of supporting the bourgeoisie to take control of the state from the last decades of the seventeenth century.

Bastille, Paris, July 14, 1789

Smith also made the labor theory of value, in which the sole source of social wealth and the basis of its economy, is work. According to Smith, and prehistoric societies in establishing the redemption value of things in terms of the effort that would have cost to get them, the fangs of a "saber-toothed tiger" just did not have hunted the same price or exchange value that some birds and some berries. "Work was the first price, the first capital acquisition payment to all things."

Smith came to the conclusion that the whole economic system that allowed the free and natural activity of individuals, would unfold and unfold in a harmonious and responsible.



Economic liberalism and its struggle against autocratic political economic regime.

Voltaire, French lawyer and philosopher, one of the founders of the Enlightenment and Adam Smith's mentor, entrepreneur champions the dignity of the nobility lazy and sluggish in these terms: "the trader hears about so often with scorn and derision of their profession and is foolish enough to be ashamed of it. I do not know, however, who is more useful to a State, a gentleman well dusted with absolute precision that says what time the king rises, or what time you lie down, given air greatness in the role of slave in the antechamber of a minister, or a merchant who enriches his country and his people. "





Liberal ideas had to fight also against mercantilist theories on protection and management scrambling to the economy as a function delegated by the State. During the initial phase of the Industrial Revolution, political liberalism points or details a model state. In this same vein is the economic assumptions define an economic model for the political model.



Adam Smith is also regarded as the founder of the period of so-called classical economists.

Smith's ultimate purpose, like that of the physiocrats and the mercantilists, was to find a way to enrich the state. But in this search process discovers that without enrichment of individuals, each of the components will definitely not social wealth of the state and proposes: "When you work for yourself and get rich, serve the society and the state with more effectively than when working alone for the interest of society as a whole. " (Any parallelism or similarity found among the ideas of Adam Smith with the current thinking of Robert Kiyosaki and Donald Trump on the entrepreneurs, the key idea to obtain financial freedom and economic independence or permanent teaching Clubprivadodeinversion.com, I assure it is no coincidence).

Economic liberalism and political freedom glorifies economically suggests that the market is regulated by free flow, the worker is free to choose their work, labor moves freely, the employment contract is an agreement between employers and employees free. The role of the State submits to preserve the freedom of economic activity freed from any political regulation.

The liberal economic ideas could be summarized as follows: "The state should be limited to maintain order and enforce the parties sign contracts freely. Everything else should be left to the laws of economics. Each individual must work and save to educate their children, to cope with illness and accidents, and to stay in old age and disability. " (I truly believe that Adam, except for the wig, now 235 years later, not be out for anything between us, could be perfectly a website and run a business Internet Business without any trouble or difficulty. I would not hesitate one minute in be its affiliate). Economic liberalism, also considered as an essential factor of development, capital accumulation, which is exalted as the ruler and benefactor of society. Adam Smith writes: "The industrial production of society can only increase in proportion to the increase of its capital." "Every man, provided it does not violate the laws of justice, must be perfectly free to embrace the medium that best seems to find its way of life and their interests, and they can get their products to compete with any other individual human nature. "

ADAM SMITH: The Wealth of Nations (1776).

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