Economic Liberalism

Economic liberalism is the greatest economic orientation of thought and practice in the last three centuries and is mostly based on economic liberalization Until the interwar period of the twentieth century is was called economic liberalism and dince then it is known as economic neoliberalism. The fundamental difference between them relate to: the role of economic activities and planning role.

Neoliberalism accepts government's intervention and planning. Economic liberalism has avoided the economic theory to doctrine, and today it is called a current of liberalism. The roots of the orientation is found in utilitarian philosophy developed since the sixteenth century and which is built around the idea of the individual and what is right and appropriate for the individual it is right and appropriate to the state. Utilitarians such as Rene Descartes, Charles Montesquieu, Thomas Reausseua, Jemery Bertha built a philosophy of personal interest and suggested economic organization based on this interest. From the beginning British utilitarians have proposed an individualistic model, and the eastern people a more social individualism, meaning that there is room for government intervention to solve social and economical issues.

One of the central ideas of liberalism is that about the natural order, according to which the universe is governed by the own laws and objectives. The notion of national law and national policy have gained more content over time depending on the historical evolution of ancient and medieval humanity. Until the fifteenth century national law and order were considered to have a divine origin and binding and their compliance leads to prosperity and happiness, and violations to poverty and death.

The attractiveness of liberalism starts from the idea that the nationality people are equal and free and order is a social and economic organization able to ensure equality of individuals. In their opinion the economic order is a natural order when economic organization functions perfectly and ensures the operation of the laws and exclusive economic objectives. Therefore the total settlement is unnecessary and laws are sufficient. The four main principles that economic liberal theory is based on include: the economy is governed by laws and objectives, the economy is based on private property, the economy presents freedom of action in conditions of perfect and free competition on the liberal market.