Core Principles of Political and Economic Liberalism

Liberalism

Liberalism is the basis of the bourgeois ideological revolution. It was originally a school of thought which subsequently led to a political, social, and economic alternative to the Old Regime. In practice, it is essentially characterized by the affirmation of individual freedom in politics, economics, thinking, science, and art.

Political Liberalism

The translation of political liberalism involves the application of the general principles of that school of thought to the organization of society and the state. It is based on the following principles:

• Sovereignty: It is not of divine origin; it emanates from the people. The king does not exercise it for himself but for the nation, which may delegate its exercise to the king, provided they swear to abide by this principle. The holder of sovereignty is the citizen.
• The Rule of Law: The king is not the source of law, is not above it, and is obliged to obey and comply with it. He must swear to the Constitution, which is the "law of laws."
• Division of Powers: The separation of legislative, executive, and judiciary powers is the fundamental guarantee of democracy.
  • The executive power is for the king.
  • The legislative power belongs to the Cortes.
  • The judiciary power is for the judges.
• Social Reform: Seignorialism is abolished. The abolition of the estates fosters the emergence of a class society, establishing the equality of all citizens before the law and taxation. In a class society, belonging to any group is not determined by birth, but by the professional category of citizens, their personal merits, or assets held.

Economic Liberalism

Adam Smith was the first theorist of economic liberalism. This economic doctrine is based on capitalism and has the following fundamental principles:

• Economic activity should be free, unlimited, and spontaneous.
• The abolition of the guilds must give way to free production, without limitation of quantity, to freedom in fixing the amount of wages, and to the power to fix hours of work.
• The abolition of monopolies, considering that these attack the free market and the free play of supply and demand.
• Capitalism is the operational form of economic liberalism. It essentially means that the holders of money and the means (capital) organize and run production.