Liberalism was emerging in continental Europe, too, in the writings of Montesquieu and Benjamin Constant in France, Wilhelm von Humboldt in Germany, and others. In the 1820s the representatives of the middle class in the Spanish Cortes, or parliament, came to be called the Liberales. They contended with the Serviles (the servile ones), who represented the nobles and the absolute monarchy. The term Serviles, for those who advocate state power over individuals, unfortunately didn’t stick. But the word “liberal,” for the defenders of liberty and the rule of law, spread rapidly. The Whig Party in England came to be called the Liberal Party. Today we know the philosophy of John Locke, Adam Smith, the American Founders, and John Stuart Mill as liberalism.
The Liberal 19th Century
In both the United States and Europe the century after the American Revolution was marked by the spread of liberalism. The ancient practices of slavery and serfdom were finally ended though some of their unjust structures stubbornly persist. Written constitutions and bills of rights protected liberty and guaranteed the rule of law. Guilds and monopolies were largely eliminated, with all trades thrown open to competition based on merit. Freedom of the press and of religion was greatly expanded, property rights were made more secure, and international trade was freed. After the defeat of Napoleon, Europe enjoyed a century of relative peace.
That liberation of human creativity unleashed astounding scientific and material progress. The Nation magazine, which was then a truly liberal journal, looking back in 1900, wrote, “Freed from the vexatious meddling of governments, men devoted themselves to their natural task, the bettering of their condition, with the wonderful results which surround us.” The technological advances of the liberal 19th century are innumerable: the steam engine, the railroad, the telegraph, the telephone, electricity, the internal combustion engine. Thanks to such innovations and an explosion of entrepreneurship, in Europe and America the great masses of people began to be liberated from the backbreaking toil that had been the natural condition of humankind since time immemorial. Infant mortality fell and life expectancy began to rise to unprecedented levels. A person looking back from 1800 would see a world that for most people had changed little in thousands of years; by 1900 the world was unrecognizable.
The Turn Away from Liberalism
Toward the end of the 19th century, classical liberalism began to give way to new forms of collectivism and state power. That Nation editorial went on to lament that “material comfort has blinded the eyes of the present generation to the cause which made it possible” and that “before [statism] is again repudiated there must be international struggles on a terrific scale.”
From the disastrous World War I on, governments grew in size, scope, and power. Exorbitant taxation, militarism, conscription, censorship, nationalization, and central planning signaled that the era of liberalism, which had so recently supplanted the old order, was now itself supplanted by the era of the megastate.
Through the Progressive Era, World War I, the New Deal, and World War II, there was tremendous enthusiasm for bigger government among American intellectuals. Herbert Croly, the first editor of the New Republic, wrote in The Promise of American Life that that promise would be fulfilled “not by … economic freedom, but by a certain measure of discipline; not by the abundant satisfaction of individual desires, but by a large measure of individual subordination and self‐denial.”
The Changing Meaning of Liberal
Around 1900 even the term “liberal” underwent a change. People who supported big government and wanted to limit and control the free market started calling themselves liberals. The economist Joseph Schumpeter noted, “As a supreme, if unintended, compliment, the enemies of private enterprise have thought it wise to appropriate its label.” Scholars began to refer to the philosophy of individual rights, free markets, and limited government—the philosophy of Locke, Smith, and Mill—as classical liberalism. Some liberals, including F. A. Hayek and Milton Friedman, continued to call themselves liberals. But others came up with a new word, libertarian.
In much of the world even today the advocates of liberty are still called liberals. In South Africa the liberals, such as Helen Suzman, rejected the system of racism and economic privilege known as apartheid in favor of human rights, nonracial policies, and free markets. In China, Russia, and Iran, liberals are those who want to replace totalitarianism in all its aspects with the liberal system of free markets, free speech, and constitutional government. Even in Western Europe, the term liberal still indicates at least a fuzzy version of classical liberalism. German liberals, for instance, usually to be found in the Free Democratic Party, oppose the socialism of the Social Democrats, the corporatism of the Christian Democrats, and the paternalism of both.
For all the growth of government in the past century, liberalism remains the basic operating system of the United States, Europe, and many other parts of the world, even if it is facing attacks. Those countries broadly respect such basic liberal principles as private property, markets, free trade, the rule of law, government by consent of the governed, constitutionalism, free speech, free press, religious freedom, women’s rights, gay rights, peace, and a generally free and open society—but not without plenty of arguments, of course, over the scope of government and the rights of individuals, from taxes and the welfare state to drug prohibition and war. But as Brian Doherty wrote in Radicals for Capitalism, his history of the libertarian movement, we live in a liberal world that runs on a “general belief in property rights and the benefits of liberty.”
America’s Liberal Heritage
And that is certainly true in the United States. The great American historian Bernard Bailyn wrote: