Classical and Radical Ideas

1
Classical and Radical Ideas

• John Locke.
• Life, times and general ideas.

2
John Locke (1632 1704)

• Personal Background
• likeable
• critical of existing system
• studied and lectured at Oxford University
• worked for the aristocrat Lord Ashley, Earl of
  Shaftsbury.
• worked as economics minister in British
  Government after 1688.
• middle class.

3
John Locke (1632 1704)

• Contemporary Economy
• agricultural capitalism predominated
• though trade was crucially important to British
  economy
• feudal social and political ties still existed in
  some ways and in some places

4
John Locke (1632 1704)

• Political Background
• lived through two major English revolutions and
  participated in one.
• English Revolution led by Oliver Cromwell 1642
  1649.
• Glorious Revolution of 1688. James 2nd
  overthrown by Parliamentary forces who placed
  William of Orange (a Dutch king) on the throne.
• Locke was an activist in this revolution and
  provided much of the theoretical basis for it, as
  well as serving as a government minister.

5
John Locke (1632 1704)

• The new political system
• became known as a constitutional monarchy and
  is the system in the UK today. Political power
  would reside in Parliament. King to have only
  have a residual political role and a symbolic
  role as head of state.
• supporters of this system were known as Whigs
  now called Liberal Democrats.
• opponents of the system called Tories now known
  as Conservatives. They continued to organise
  counter revolution for 50 years or so

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John Locke (1632 1704)

• Famous Writings.
• Essay Concerning Human Understanding. (1690).
• Two Treatise on Government (especially second)
  (1690 but written over previous 25 years)
• Some Considerations of the Consequences of the
  Lowering of Interest and Raising the Value of
  Money (1691)

7
John Locke (1632 1704)

• Economic Ideas
• Predominant ideas in his time were those of the
  Mercantilists aim of economy was to maximise a
  countrys monetary external surplus.
• His MACRO economics and economic policy was
  essentially mercantilist though he had some
  doubts about overriding markets.
• But he saw more clearly and quickly than other
  commentators the importance of
• individual choice
• markets
• private property
• He can thus be considered one of the founders of
  modern micro-economics

8
John Locke (1632 1704)

• Basic Moral and Political Philosophy.
• based on the INDIVIDUAL protestant influence?
  Theological influence?
• revolutionary starting point strongly rejected by
  Tory and conservative thinkers who saw society as
  pre-stratified into layers of natural rulers and
  natural ruled, all held in their place by
  religious or social and political tradition
• if society is just sum total of individuals, how
  does ORDER emerge?
• for Locke it emerges by well defined private
  property rights and the market mechanism.
• it is here that we see the foundations of modern
  economics and a deep insight into how the
  emerging system of capitalism could work or what
  was needed to make it work, including an
  appropriate political system.

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John Locke (1632 1704)

• NATURAL LAW and NATURAL RIGHTS.
• natural law - people are naturally rational self
  interested individuals
• natural rights rights needed to enable
  individuals to PURSUE their rational self
  interest.
• key features of natural rights PRIVATE
  property, market mechanism, right to buy and
  sell, right not to be threatened or coerced in
  pursuit of these rights.

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John Locke (1632 1704)

• Private property and natural resources.
• natural resources, especially land, provided (by
  God?) for the provision of human beings.
• in NATURAL state, resources held IN COMMON, for
  all to use
• should be enough and as good
• problem - what happens as economy develops and
  resources are competed for
• solution (i) private property rights, money and
  market developed
• solution (ii) the political STATE develops to
  invent and safeguard the RULES of private
  property and the market
• note these are not exclusive, each depends on the
  other.
• Locke is now concerned with how the STATE should
  work and how PRIVATE property originated and
  develops.