Modern liberalism
Also called: Welfare liberalism · Topic: Equality and Social Justice · NCERT: Class 11, Ch 2 "Freedom"
Meaning
Modern liberalism, also called welfare liberalism, is the later form of liberalism. Classical liberalism wanted only a minimal state. Modern liberalism accepts a welfare state, meaning a state that provides education, health care and social security and acts to reduce social and economic inequality. It still treats individual liberty as the top value. Its view is that people need a basic level of security before freedom can mean anything real to them.
Example
John Maynard Keynes argued that the state should manage the economy. Britain's Beveridge Report (1942) laid the plan for its welfare state. In India, the Nehruvian mixed economy followed the same idea: the public sector and the private sector worked side by side, and the state took responsibility for welfare.
Don't confuse with
- Classical liberalism: classical liberalism wants a minimal state that leaves the economy to the market. Modern liberalism accepts that the state must step in to reduce inequality.
- Neo-liberalism: despite the similar name, neo-liberalism moves back towards a smaller state and free markets.