Social liberalism
Encyclopedia
Social liberalism is the belief that liberalism
Liberalism
Liberalism is the belief in the importance of liberty and equal rights. Liberals espouse a wide array of views depending on their understanding of these principles, but generally, liberals support ideas such as constitutionalism, liberal democracy, free and fair elections, human rights,...

 should include social justice
Social justice
Social justice generally refers to the idea of creating a society or institution that is based on the principles of equality and solidarity, that understands and values human rights, and that recognizes the dignity of every human being. The term and modern concept of "social justice" was coined by...

. It differs from classical liberalism
Classical liberalism
Classical liberalism is the philosophy committed to the ideal of limited government, constitutionalism, rule of law, due process, and liberty of individuals including freedom of religion, speech, press, assembly, and free markets....

 in that it believes the legitimate role of the state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...

 includes addressing economic and social issues such as unemployment, health care, and education while simultaneously expanding civil rights
Civil rights
Civil and political rights are a class of rights that protect individuals' freedom from unwarranted infringement by governments and private organizations, and ensure one's ability to participate in the civil and political life of the state without discrimination or repression.Civil rights include...

. Under social liberalism, the good of the community
Common good
The common good is a term that can refer to several different concepts. In the popular meaning, the common good describes a specific "good" that is shared and beneficial for all members of a given community...

 is viewed as harmonious with the freedom of the individual. Social liberal policies have been widely adopted in much of the capitalist world, particularly following World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

. Social liberal ideas and parties tend to be considered centrist or centre-left
Centre-left
Centre-left is a political term that describes individuals, political parties or organisations such as think tanks whose ideology lies between the centre and the left on the left-right spectrum...

.

A reaction against social liberalism in the late twentieth century, often called neoliberalism
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...

, led to monetarist
Monetarism
Monetarism is a tendency in economic thought that emphasizes the role of governments in controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over...

 economic policies and a reduction in government provision of services. However, this reaction did not result in a return to classical liberalism
Classical liberalism
Classical liberalism is the philosophy committed to the ideal of limited government, constitutionalism, rule of law, due process, and liberty of individuals including freedom of religion, speech, press, assembly, and free markets....

, as governments continued to provide social services and retained control over economic policy.

The term "social liberalism" is often used interchangeably with "modern liberalism". The Liberal International
Liberal International
Liberal International is a political international federation for liberal parties. Its headquarters is located at 1 Whitehall Place, London, SW1A 2HD within the National Liberal Club. It was founded in Oxford in 1947, and has become the pre-eminent network for liberal parties and for the...

 is the main international organisation of liberal parties, which include, among other liberal variants, social liberal parties. It affirms the following principles: human rights
Human rights
Human rights are "commonly understood as inalienable fundamental rights to which a person is inherently entitled simply because she or he is a human being." Human rights are thus conceived as universal and egalitarian . These rights may exist as natural rights or as legal rights, in both national...

, free and fair elections and multiparty democracy
Multi-party system
A multi-party system is a system in which multiple political parties have the capacity to gain control of government separately or in coalition, e.g.The Conservative-Liberal Democrat coalition in the United Kingdom formed in 2010. The effective number of parties in a multi-party system is normally...

, social justice
Social justice
Social justice generally refers to the idea of creating a society or institution that is based on the principles of equality and solidarity, that understands and values human rights, and that recognizes the dignity of every human being. The term and modern concept of "social justice" was coined by...

, tolerance
Toleration
Toleration is "the practice of deliberately allowing or permitting a thing of which one disapproves. One can meaningfully speak of tolerating, ie of allowing or permitting, only if one is in a position to disallow”. It has also been defined as "to bear or endure" or "to nourish, sustain or preserve"...

, social market economy
Social market economy
The social market economy is the main economic model used in West Germany after World War II. It is based on the economic philosophy of Ordoliberalism from the Freiburg School...

, free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...

, environmental sustainability
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...

 and a strong sense of international solidarity.

United Kingdom

By the end of the nineteenth century, the principles of classical liberalism
Classical liberalism
Classical liberalism is the philosophy committed to the ideal of limited government, constitutionalism, rule of law, due process, and liberty of individuals including freedom of religion, speech, press, assembly, and free markets....

 were challenged by downturns in economic growth, a growing perception of the evils of poverty, unemployment and relative deprivation present within modern industrial cities, and the agitation of organized labour. The ideal of the self-made individual, who through hard work and talent could make his or her place in the world, seemed increasingly implausible. A major political reaction against the changes introduced by industrialization and laissez-faire capitalism came from conservatives concerned about social balance, although socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...

 later became a more important force for change and reform. Some Victorian writers—including Charles Dickens
Charles Dickens
Charles John Huffam Dickens was an English novelist, generally considered the greatest of the Victorian period. Dickens enjoyed a wider popularity and fame than had any previous author during his lifetime, and he remains popular, having been responsible for some of English literature's most iconic...

, Thomas Carlyle
Thomas Carlyle
Thomas Carlyle was a Scottish satirical writer, essayist, historian and teacher during the Victorian era.He called economics "the dismal science", wrote articles for the Edinburgh Encyclopedia, and became a controversial social commentator.Coming from a strict Calvinist family, Carlyle was...

, and Matthew Arnold
Matthew Arnold
Matthew Arnold was a British poet and cultural critic who worked as an inspector of schools. He was the son of Thomas Arnold, the famed headmaster of Rugby School, and brother to both Tom Arnold, literary professor, and William Delafield Arnold, novelist and colonial administrator...

—became early influential critics of social injustice.

John Stuart Mill
John Stuart Mill
John Stuart Mill was a British philosopher, economist and civil servant. An influential contributor to social theory, political theory, and political economy, his conception of liberty justified the freedom of the individual in opposition to unlimited state control. He was a proponent of...

 contributed enormously to liberal thought by combining elements of classical liberalism with what eventually became known as the new liberalism. The new liberals tried to adapt the old language of liberalism to confront these difficult circumstances, which they believed could only be resolved through a broader and more interventionist conception of the state. An equal right to liberty could not be established merely by ensuring that individuals did not physically interfere with each other, or merely by having laws that were impartially formulated and applied. More positive and proactive measures were required to ensure that every individual would have an equal chance of success.

In the late nineteenth century and early twentieth century, a group of British thinkers, known as the New Liberals, made a case against laissez-faire classical liberalism and argued in favor of state intervention in social, economic, and cultural life. The New Liberals, which included intellectuals like T.H. Green
Thomas Hill Green
Thomas Hill Green was an English philosopher, political radical and temperance reformer, and a member of the British idealism movement. Like all the British idealists, Green was influenced by the metaphysical historicism of G.W.F. Hegel...

, L.T. Hobhouse
Leonard Trelawny Hobhouse
Leonard Trelawny Hobhouse was a British liberal politician and sociologist, who has been considered one of the leading and earliest proponents of social liberalism. His works, alongside that of writers such as T.H. Green and John A. Hobson, occupy a seminal position within the canon of New...

, and John A. Hobson
John A. Hobson
John Atkinson Hobson , commonly known as John A. Hobson or J. A. Hobson, was an English economist and critic of imperialism, widely popular as a lecturer and writer.-Life:...

, saw individual liberty as something achievable only under favorable social and economic circumstances. In their view, the poverty, squalor, and ignorance in which many people lived made it impossible for freedom and individuality to flourish. New Liberals believed that these conditions could be ameliorated only through collective action coordinated by a strong, welfare-oriented, and interventionist state.

Ultimately, the Liberal
Liberal Party (UK)
The Liberal Party was one of the two major political parties of the United Kingdom during the 19th and early 20th centuries. It was a third party of negligible importance throughout the latter half of the 20th Century, before merging with the Social Democratic Party in 1988 to form the present day...

 governments of Henry Campbell-Bannerman
Henry Campbell-Bannerman
Sir Henry Campbell-Bannerman GCB was a British Liberal Party politician who served as Prime Minister of the United Kingdom from 1905 to 1908 and Leader of the Liberal Party from 1899 to 1908. He also served as Secretary of State for War twice, in the Cabinets of Gladstone and Rosebery...

 and H.H. Asquith, especially thanks to Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...

 and later Prime Minister, David Lloyd George
David Lloyd George
David Lloyd George, 1st Earl Lloyd-George of Dwyfor OM, PC was a British Liberal politician and statesman...

, established the foundations of the welfare state in the UK before the First World War
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

. The comprehensive welfare state built in the UK after the Second World War, although largely accomplished by the Labour Party
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...

, was significantly designed by two Liberals—John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...

, who laid the economic foundations, and William Beveridge
William Beveridge
William Henry Beveridge, 1st Baron Beveridge KCB was a British economist and social reformer. He is best known for his 1942 report Social Insurance and Allied Services which served as the basis for the post-World War II welfare state put in place by the Labour government elected in 1945.Lord...

, who designed the welfare system.

Germany

In late nineteenth century Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

, left-liberals established trade unions in order to help workers improve working and economic conditions. Leading left-liberals, such as Lujo Brentano
Lujo Brentano
Lujo Brentano was an eminent German economist and social reformer.Lujo Brentano, born in Aschaffenburg into one of the most distinguished German-Catholic intellectual families , attended school in Augsburg and Aschaffenburg...

, established the Social Policy Association in 1873 to promote social reform. The main objectives of the left-liberals were free speech, freedom of assembly, free trade, representative government, equal and secret suffrage, and protection of private property, although they were strongly opposed to the welfare state
Welfare state
A welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those...

, which they called State Socialism
State Socialism
State Socialism was a term introduced to describe Otto von Bismarck's social welfare policies. The term was actually coined by Bismarck's liberal opposition but later accepted by Bismarck...

. Friedrich Naumann, who was an Association member, later established the National Social Union, which attempted to combine bourgeois nationalism with proletarian socialism. The new group advocated, among other things, increased social welfare legislation, the right to strike, and profit-sharing in industry. Although the party was unable to win any seats and soon dissolved, the theories it developed would remain influential in German liberalism.

While some writers describe Germany's left-liberalism as social liberalism, others only apply the term to the policies of the National Social Union. The main left-liberal parties in Germany were the German Progress Party
German Progress Party
The German Progress Party was the first modern political party with a program in Germany, founded by the liberal members of the Prussian Lower House in 6 June, 1861....

 during the German Empire
German Empire
The German Empire refers to Germany during the "Second Reich" period from the unification of Germany and proclamation of Wilhelm I as German Emperor on 18 January 1871, to 1918, when it became a federal republic after defeat in World War I and the abdication of the Emperor, Wilhelm II.The German...

 and the German Democratic Party during the Weimar Republic
Weimar Republic
The Weimar Republic is the name given by historians to the parliamentary republic established in 1919 in Germany to replace the imperial form of government...

. The Free Democratic Party
Free Democratic Party (Germany)
The Free Democratic Party , abbreviated to FDP, is a centre-right classical liberal political party in Germany. It is led by Philipp Rösler and currently serves as the junior coalition partner to the Union in the German federal government...

 represents liberalism in modern Germany. The term left-liberal contrasted these parties with the more conservative liberals, in particular the right-wing of the National Liberal Party
National Liberal Party (Germany)
The National Liberal Party was a German political party which flourished between 1867 and 1918. It was formed by Prussian liberals who put aside their differences with Bismarck over domestic policy due to their support for his highly successful foreign policy, which resulted in the unification of...

, which allied itself with the Conservatives.

France

In France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, social liberal theory was developed in the Third Republic
Third Republic
Third Republic may refer to:* French Third Republic * Third Republic of South Korea * Third and current Democratic Republic of the Congo * Third and current Hellenic Republic of Greece...

 by solidarist thinkers, including Alfred Fouillée and Émile Durkheim
Émile Durkheim
David Émile Durkheim was a French sociologist. He formally established the academic discipline and, with Karl Marx and Max Weber, is commonly cited as the principal architect of modern social science and father of sociology.Much of Durkheim's work was concerned with how societies could maintain...

, who were inspired by sociology
Sociology
Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—which uses various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity...

 and influenced radical politicians like Léon Bourgeois
Léon Bourgeois
-Biography:He was born in Paris, and was trained in law. After holding a subordinate office in the department of public works, he became successively prefect of the Tarn and the Haute-Garonne , and then returned to Paris to enter the ministry of the interior...

. They explained that a greater division of labor caused greater opportunity and individualism, but it also inspired a more complex interdependence. They argued that the individual had a debt to society, promoting progressive taxation to support public works and welfare schemes. However, they wanted the state to coordinate rather than to manage, and they encouraged cooperative insurance schemes among individuals. Their main objective was to remove barriers to social mobility rather than create a welfare state.

United States

In the 1870s and the 1880s, the American economists Richard Ely, John Bates Clark
John Bates Clark
John Bates Clark was an American neoclassical economist. He was one of the pioneers of the marginalist revolution and opponent to the Institutionalist school of economics, and spent most of his career teaching at Columbia University.-Biography:Clark was born and raised in Providence, Rhode...

, and Henry Carter Adams—influenced both by socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...

 and the Evangelical Protestant movement—castigated the conditions caused by industrial factories and expressed sympathy towards labor unions. None, however, developed a systematic political philosophy, and they later abandoned their flirtations with socialist thinking. In 1883, Lester Frank Ward
Lester Frank Ward
Lester F. Ward was an American botanist, paleontologist, and sociologist. He served as the first president of the American Sociological Association.-Biography:...

 published the two-volume Dynamic Sociology and formalized the basic tenets of social liberalism while at the same time attacking the laissez-faire policies advocated by Herbert Spencer
Herbert Spencer
Herbert Spencer was an English philosopher, biologist, sociologist, and prominent classical liberal political theorist of the Victorian era....

 and William Graham Sumner
William Graham Sumner
William Graham Sumner was an American academic and "held the first professorship in sociology" at Yale College. For many years he had a reputation as one of the most influential teachers there. He was a polymath with numerous books and essays on American history, economic history, political...

. The historian Henry Steele Commager
Henry Steele Commager
Henry Steele Commager was an American historian who helped define Modern liberalism in the United States for two generations through his forty books and 700 essays and reviews...

 ranked Ward alongside William James
William James
William James was a pioneering American psychologist and philosopher who was trained as a physician. He wrote influential books on the young science of psychology, educational psychology, psychology of religious experience and mysticism, and on the philosophy of pragmatism...

, John Dewey
John Dewey
John Dewey was an American philosopher, psychologist and educational reformer whose ideas have been influential in education and social reform. Dewey was an important early developer of the philosophy of pragmatism and one of the founders of functional psychology...

, and Oliver Wendell Holmes and called him the father of the modern welfare state. Writing from 1884 until the 1930s, John Dewey
John Dewey
John Dewey was an American philosopher, psychologist and educational reformer whose ideas have been influential in education and social reform. Dewey was an important early developer of the philosophy of pragmatism and one of the founders of functional psychology...

—an educator influenced by Hobhouse, Green, and Ward—advocated socialist methods to achieve liberal goals. Some social liberal ideas were later incorporated into the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...

, which developed as a response to the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

.

Implementation

The welfare state grew gradually and unevenly from the late nineteenth century, but became fully developed following the Second World War, along with the mixed market economy. Also called "embedded liberalism
Embedded liberalism
The term embedded liberalism refers to the economic system which dominated worldwide from the end of World War II to the 1970s. The term itself is credited to John Ruggie, an American political scientist....

", social liberal policies gained broad support across the political spectrum, because they reduced the disruptive and polarizing tendencies in society, without challenging the capitalist economic system. Business accepted social liberalism in the face of widespread dissatisfaction with the boom and bust
Boom and bust
A credit boom-bust cycle is an episode characterized by a sustained increase in several economics indicators followed by a sharp and rapid contraction. Commonly the boom is driven by a rapid expansion of credit to the private sector accompanied with rising prices of commodities and stock market index...

 cycle of the earlier economic system, and because it seemed to them to be a lesser evil than more left-wing modes of government. Social liberalism was characterized by cooperation between big business, government and labor unions. Government was able to assume a strong role because its power had been strengthened by the wartime economy. However the extent to which this occurred varied considerably among Western democracies.

United Kingdom

The first notable implementation of social liberal policies occurred under the Liberal Party in Britain from 1906 until 1914. These initiatives became known as the Liberal reforms
Liberal reforms
The Liberal welfare reforms were acts of social legislation passed by the British Liberal Party after the 1906 General Election. It has been argued that this legislation shows the emergence of the modern welfare state in the UK. They shifted their outlook from a laissez-faire system to a more...

. The main elements included pensions for poor elderly people, health, sickness, and unemployment insurance
National Insurance Act 1911
The National Insurance Act 1911 is an Act of Parliament of the United Kingdom. The Act is often regarded as one of the foundations of modern social welfare in the United Kingdom and forms part of the wider social welfare reforms of the Liberal Government of 1906-1914...

 based on earlier programs in Germany, and the establishment of labour exchanges
Labour Exchanges Act 1909
The Labour Exchanges Act 1909 was an Act of Parliament which saw the creation of Labour Exchanges. The stated purpose was to help the unemployed find employment....

. These changes were accompanied by progressive taxation, particularly in the People's Budget
People's Budget
The 1909 People's Budget was a product of then British Prime Minister H. H. Asquith's Liberal government, introducing many unprecedented taxes on the wealthy and radical social welfare programmes to Britain's political life...

 of 1909. The old system of charity—relying on the Poor laws
English Poor Laws
The English Poor Laws were a system of poor relief which existed in England and Wales that developed out of late-medieval and Tudor-era laws before being codified in 1587–98...

 and supplemented by private charity, public co-operatives, and private insurance companies—was in crisis, giving the state added impetus for reform. The Liberal Party caucus elected in 1906 also contained more professionals, including academics and journalists, sympathetic to social liberalism. The large business owners had mostly deserted the Liberals for the Conservatives, the latter becoming the favorite party for commercial interests. The reforms were regularly opposed by both business interests and trade unions. Liberals most identified with these reforms were the prime minister H. H. Asquith
H. H. Asquith
Herbert Henry Asquith, 1st Earl of Oxford and Asquith, KG, PC, KC served as the Liberal Prime Minister of the United Kingdom from 1908 to 1916...

, John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...

, David Lloyd George
David Lloyd George
David Lloyd George, 1st Earl Lloyd-George of Dwyfor OM, PC was a British Liberal politician and statesman...

 (especially as Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...

), Winston Churchill
Winston Churchill
Sir Winston Leonard Spencer-Churchill, was a predominantly Conservative British politician and statesman known for his leadership of the United Kingdom during the Second World War. He is widely regarded as one of the greatest wartime leaders of the century and served as Prime Minister twice...

 (as President of the Board of Trade) in addition to the civil servant William Beveridge
William Beveridge
William Henry Beveridge, 1st Baron Beveridge KCB was a British economist and social reformer. He is best known for his 1942 report Social Insurance and Allied Services which served as the basis for the post-World War II welfare state put in place by the Labour government elected in 1945.Lord...

.

Germany

Alexander Ruestow, a German economist, first proposed the German version of economic social liberalism. In 1932, speaking at the Social Policy Association, he applied the label "neoliberalism" to this kind of social liberalism, although that term
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...

 now features a different meaning than the one mentioned by Ruestow. Ruestow wanted an alternative to socialism and to the conservative economics developed in the German Empire
German Empire
The German Empire refers to Germany during the "Second Reich" period from the unification of Germany and proclamation of Wilhelm I as German Emperor on 18 January 1871, to 1918, when it became a federal republic after defeat in World War I and the abdication of the Emperor, Wilhelm II.The German...

. In 1938, Ruestow met with a variety of economic thinkers—including the likes of Ludwig von Mises
Ludwig von Mises
Ludwig Heinrich Edler von Mises was an Austrian economist, philosopher, and classical liberal who had a significant influence on the modern Libertarian movement and the "Austrian School" of economic thought.-Biography:-Early life:...

, Friedrich von Hayek, and William Roepke
Wilhelm Röpke
Wilhelm Röpke was Professor of Economics, first in Jena, then in Graz, Marburg, Istanbul and finally in Geneva, and the main spiritual father of the German social market economy, theorising and collaborating to organise the post-World War II economic re-awakening of the then destroyed German...

—to determine how liberalism could be renewed. Ruestow advocated a strong state to enforce free markets and state intervention to correct market failures. However, Mises argued that monopolies and cartels operated because of state intervention and protectionism, and claimed that the only legitimate role for the state was to abolish barriers to market entry. He viewed Ruestow's proposals as negating market freedom and saw them as similar to socialism.

Following the Second World War, "neoliberalism", now usually called ordoliberalism
Ordoliberalism
Ordoliberalism is a school of liberalism that emphasised the need for the state to ensure that the free market produces results close to its theoretical potential . The theory was developed by German economists and legal scholars such as Walter Eucken, Franz Böhm, Hans Grossmann-Doerth and Leonhard...

 or the Social Market Economy
Social market economy
The social market economy is the main economic model used in West Germany after World War II. It is based on the economic philosophy of Ordoliberalism from the Freiburg School...

, was adopted by the West German government under Ludwig Erhard
Ludwig Erhard
Ludwig Wilhelm Erhard was a German politician affiliated with the CDU and Chancellor of West Germany from 1963 until 1966. He is notable for his leading role in German postwar economic reform and economic recovery , particularly in his role as Minister of Economics under Chancellor Konrad Adenauer...

, who was the economics minister and later became the Chancellor. Price controls were lifted and free markets were introduced. While these policies are credited with Germany's post-war economic recovery, the welfare state, which had been established under Bismarck, became increasingly costly.

Rest of Europe

The post-war governments of other countries in Western Europe also followed social liberal policies. These policies were implemented primarily by Christian Democrats and Social Democrats, as liberal parties in Europe declined in strength from their peak in the nineteenth century.

United States

American political discourse resisted this social turn in European liberalism. While the economic policies of the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...

 appeared Keynesian, there was no revision of liberal theory in favor of greater state initiative. America lacked an effective socialist movement; however, New Deal policies often appeared radical and were attacked by the right. The separate development of modern liberalism in the United States is often attributed to American exceptionalism
American exceptionalism
American exceptionalism refers to the theory that the United States is qualitatively different from other countries. In this view, America's exceptionalism stems from its emergence from a revolution, becoming "the first new nation," and developing a uniquely American ideology, based on liberty,...

, which kept mainstream American ideology within a narrow range.

Reversal

Following economic problems in the 1970s, social liberal thought underwent some transformation. Keynesian economic management was seen as interfering with the free market while increased welfare spending that had been funded by higher taxes prompted fears of lower investment, lower consumer spending, and the creation of a "dependency culture." Trade unions often caused high wages and industrial disruption, while full employment was regarded as unsustainable. Writers such as Milton Friedman
Milton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...

 and Samuel Brittan
Samuel Brittan
Sir Samuel Brittan is a British columnist for the Financial Times and an author.At Cambridge he was taught by Peter Bauer and Milton Friedman...

, who were influenced by Friedrich Hayek
Friedrich Hayek
Friedrich August Hayek CH , born in Austria-Hungary as Friedrich August von Hayek, was an economist and philosopher best known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought...

, advocated a reversal of social liberalism. Their policies, which are often called neoliberalism
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...

, had a significant influence on Western politics, most notably on the governments of UK Prime Minister Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...

 and US President Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....

, who pursued policies of deregulation of the economy and reduction in spending on social services.

Part of the reason for the collapse of the social liberal coalition was a challenge in the 1970s from financial interests that could operate independently of national governments. Another cause was the decline of organized labor which had formed part of the coalition but was also a support for left-wing ideologies challenging the liberal consensus. Related to this was the decline of working class consciousness and the growth of the middle class. The push by the United States, which had been least accepting of social liberalism, for trade liberalization further eroded support.

Active social liberal parties and organizations

In Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

, social liberal parties tend to be small or medium-sized centrist
Centrism
In politics, centrism is the ideal or the practice of promoting policies that lie different from the standard political left and political right. Most commonly, this is visualized as part of the one-dimensional political spectrum of left-right politics, with centrism landing in the middle between...

 and center-left
Centre-left
Centre-left is a political term that describes individuals, political parties or organisations such as think tanks whose ideology lies between the centre and the left on the left-right spectrum...

 parties. Examples of successful European social liberal parties, which have participated in government coalitions at national or regional levels, are the Liberal Democrats
Liberal Democrats
The Liberal Democrats are a social liberal political party in the United Kingdom which supports constitutional and electoral reform, progressive taxation, wealth taxation, human rights laws, cultural liberalism, banking reform and civil liberties .The party was formed in 1988 by a merger of the...

 in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, D66
Democrats 66
Democrats 66 is a progressive and social-liberal political party in the Netherlands. D66 was formed in 1966 by a group of politically unaligned, young intellectuals, led by journalist Hans van Mierlo. The party's main objective was to democratise the political system; it proposed to create an...

 in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

, and the Danish Social Liberal Party
Det Radikale Venstre
The Danish Social Liberal Party is a social liberal political party in Denmark. The party is a member of Liberal International and the European Liberal Democrat and Reform Party.-Origin:...

 in Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

. In continental European politics, social liberal parties are integrated in the ALDE
Alliance of Liberals and Democrats for Europe
The Alliance of Liberals and Democrats for Europe is a transnational alliance between two European political parties: the European Liberal Democrat and Reform Party and the European Democratic Party. It has political groups in the European Parliament, the EU Committee of the Regions, the...

 group of the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...

, which is the third biggest group at the parliament and includes both social liberal parties and market liberal parties.

Giving an exhaustive list of social liberal parties worldwide is difficult, largely because political organisations are not always ideologically pure. Party ideologies often change over time. However, the following parties and organisations are usually accepted by peersLiberal International
Liberal International
Liberal International is a political international federation for liberal parties. Its headquarters is located at 1 Whitehall Place, London, SW1A 2HD within the National Liberal Club. It was founded in Oxford in 1947, and has become the pre-eminent network for liberal parties and for the...

, ELDR, CALD, Africa Liberal Network
Africa Liberal Network
The Africa Liberal Network is an organization composed of 27 political parties from 21 African countries, and is an associated organisation of Liberal International, the political family to which Liberal Democratic parties belong...

, RELIAL
Liberal Network for Latin America
The Liberal Network for Latin America is an international network founded in 2003 with the official launch taking place in Costa Rica November, 2004. It includes 45 liberal institutions from 16 Latin American countries.Members of RELIAL include political parties as well as think tanks, foundations...

 or European Liberal Forum
European Liberal Forum
The European Liberal Forum, abbreviated to ELF, political foundation at European level affiliated to the European Liberal Democratic and Reform Party...

or scholars as following social liberalism as a core ideology.
  • Åland: Åland Centre
    Åland Centre
    The Åland Centre is a centrist, agrarian political party in the Åland Islands.At the 2003 elections, the party won 24.1 % of popular votes and 7 out of 30 seats. On the October 21st, 2007, parliamentary elections, the party won 23.5 % of the popular vote and 8 out of 30 seats.- External links :*...

    , Liberals for Åland
    Liberals for Åland
    The Liberals for Åland is a liberal political party of the Åland Islands. The party is an observer at Liberal International. At the 2007 legislative elections, the party won 10 out of 30 seats. The current party leader is Viveka Eriksson.-Elections:...

  • Australia: Australian Democrats
    Australian Democrats
    The Australian Democrats is an Australian political party espousing a socially liberal ideology. It was formed in 1977, by a merger of the Australia Party and the New LM, after principals of those minor parties secured the commitment of former Liberal minister Don Chipp, as a high profile leader...

  • Belgium: Open Flemish Liberals and Democrats
  • Brazil: Brazilian Social Democracy Party
    Brazilian Social Democracy Party
    The Brazilian Social Democracy Party is a centrist political party in Brazil. Originally a centre-left party at the time of its foundation, PSDB moved to the centre after Fernando Henrique Cardoso forged an alliance with the right-wing Liberal...

    .
  • Canada: Liberal Party of Canada
    Liberal Party of Canada
    The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...

  • Chile: Party for Democracy
    Party for Democracy
    The Party for Democracy is a political party in Chile; it is social democratic in its political orientation. It was founded in December 1987 by Ricardo Lagos, who aimed at forming a legal social democratic party . The party continued to function after the defeat of Pinochet...

  • Croatia: Croatian People's Party - Liberal Democrats, Istrian Democratic Assembly
    Istrian Democratic Assembly
    The Istrian Democratic Assembly is a Croatian regional and social liberal political party in Istria. The hyphenated abbreviation IDS-DDI is most commonly used....

  • Denmark: Danish Social Liberal Party
    Det Radikale Venstre
    The Danish Social Liberal Party is a social liberal political party in Denmark. The party is a member of Liberal International and the European Liberal Democrat and Reform Party.-Origin:...

  • Estonia: Estonian Centre Party
    Estonian Centre Party
    The Estonian Centre Party is a centrist, social liberal party in Estonia. Keskerakond is a member of the European Liberal Democrat and Reform Party. It has the largest membership of an Estonian party, with over 12 000 members....

  • Faroe Islands: Self-Government Party
  • Finland: Centre Party
    Centre Party (Finland)
    The Centre Party is a centrist and Nordic agrarian political party in Finland. It is one of the four largest political parties in the country, along with the Social Democratic Party , the National Coalition Party and the True Finns , and currently has 35 seats in the Finnish Parliament...

    , Swedish People's Party
  • France: Left Radical Party
    Left Radical Party
    The Radical Party of the Left is a minor social-liberal, and in opposition to its common understanding of its name, a moderate centre-left political party in France advocating radicalism, secularism to its french extend known as laïcité, progressivism, pro-Europeanism, individual freedom and...

    , Democratic Movement
    Democratic Movement (France)
    The Democratic Movement , MoDem) is a centrist, social liberal and pro-European French political party that was founded by centrist politician François Bayrou to succeed his Union for French Democracy and to contest the 2007 legislative election, after his strong showing in the 2007 presidential...

    , Radical Party
  • Greenland: Democrats
    Democrats (Greenland)
    The Democrats are a liberal and social-liberal, political party in Greenland. At the legislative elections on the fifteenth of November 2005, the party won 22.8% of the popular vote, and seven out of 31 seats, rising from 2002 totals of 15.6% of the popular vote and five out of 31 seats...

  • Iceland: Liberal Party
  • Italy: Alliance for Italy
    Alliance for Italy
    Alliance for Italy is a centrist political party in Italy.The party, which is described in its manifesto as "democratic, liberal, popular" as opposed both to "right-wing populism" and the "social-democratic left, an experience with high and memorable value, yet by now run out", was launched on 11...

    , Italian Radicals
    Italian Radicals
    Italian Radicals is an Italian political party which describes itself as a liberale, liberista e libertario political movement .It was...

    , Italian Republican Party
    Italian Republican Party
    The Italian Republican Party is a liberal political party in Italy.The PRI is party with old roots that originally took a left-wing position, claiming descent from the political position of Giuseppe Mazzini...

  • Japan: Democratic Party of Japan
    Democratic Party of Japan
    The is a political party in Japan founded in 1998 by the merger of several opposition parties. Its socially liberal platform is generally considered center-left in the Japanese political spectrum...

  • Luxembourg: Democratic Party
    Democratic Party (Luxembourg)
    The Democratic Party , abbreviated to DP, is the major liberal political party in Luxembourg. One of the three major parties, the DP sits on the centre-right, holding moderate market liberal views combined with a strong emphasis on civil liberties, human rights, and internationalism.Founded in...

  • Netherlands: Democrats 66
    Democrats 66
    Democrats 66 is a progressive and social-liberal political party in the Netherlands. D66 was formed in 1966 by a group of politically unaligned, young intellectuals, led by journalist Hans van Mierlo. The party's main objective was to democratise the political system; it proposed to create an...

    , GreenLeft
    GreenLeft
    GreenLeft is a green political party operating in the Netherlands.GreenLeft was formed on 1 March 1989 as a merger of four left-wing political parties: the Communist Party of the Netherlands, Pacifist Socialist Party, the Political Party of Radicals and the Evangelical People's Party...

  • Norway: Liberal Party of Norway
  • Paraguay: Authentic Radical Liberal Party
    Authentic Radical Liberal Party
    The Authentic Radical Liberal Party is a liberal party in Paraguay.The party is an observer member of Liberal International. At the last legislative elections, 27 April 2003, the party won 25.7 % of the popular vote and 21 out of 80 seats in the Chamber of Deputies of Paraguay and 24.3 %, leading...

  • Philippines: Liberal Party
    Liberal Party (Philippines)
    The Liberal Party of the Philippines is a liberal party in the Philippines, founded by then senators Senate President Manuel Roxas, Senate President Pro-Tempore Elpidio Quirino, and former 9th Senatorial District Senator Jose Avelino, on November 24, 1945 by a breakaway Liberal group from the...

  • Poland: Democratic Party
    Partia Demokratyczna - demokraci.pl
    The Democratic Party , abbreviated to PD, is a centrist, liberal political party in Poland. It has no members of the Sejm, Senate, or European Parliament....

    , Palikot's Movement
  • Portugal: Movimento Liberal Social
    Liberal Social Movement (Portugal)
    The Liberal Social Movement is a political organisation willing to become a liberal party in Portugal.The Liberal Social Movement was founded in 2005 and has as objective to promote social liberalism in Portugal. The movement is a platform of individuals who believe that the old left/right...

  • Puerto Rico: Popular Democratic Party
    Popular Democratic Party of Puerto Rico
    The Popular Democratic Party of Puerto Rico is a political party that supports Puerto Rico's right to self-determination and sovereignty, through the enhancement of Puerto Rico's current status as a commonwealth....

  • Russia: Russian Democratic Party "Yabloko"
    Yabloko
    The Russian United Democratic Party "Yabloko" The Russian United Democratic Party "Yabloko" The Russian United Democratic Party "Yabloko" (Russian: Росси́йская объединённая демократи́ческая па́ртия «Я́блоко» Rossiyskaya obyedinyonnaya demokraticheskaya partiya "Yabloko"; is a Russian social...

  • Senegal: Senegalese Democratic Party
    Senegalese Democratic Party
    The Senegalese Democratic Party is a political party in Senegal. The party considers itself a liberal party and is a member of the Liberal International. Abdoulaye Wade, Senegal's president, is the party's leader...

  • Serbia: Liberal Democratic Party
  • Slovenia: Liberal Democracy of Slovenia
    Liberal Democracy of Slovenia
    Liberal Democracy of Slovenia is a liberal political party in Slovenia. It is led by Katarina Kresal and is a member of the Liberal International and the European Liberal Democrat and Reform Party...

    , Zares
    Zares
    Zares – Social Liberals is a social-liberal political party in Slovenia. Its president is Gregor Golobič, former Secretary General of the Liberal Democracy of Slovenia and former close advisor to the late Janez Drnovšek, who had previously abandoned active political involvement due to...

  • Spain: Union, Progress and Democracy
    Union, Progress and Democracy
    Union, Progress and Democracy is a Spanish political party founded in September 2007.It is a progressivist party, between social democracy and social liberalism. One of its goals is to build a federal system for Spain and European Union, with clear responsibilities distributed among local...

    , Citizens – Party of the Citizenry
    Citizens – Party of the Citizenry
    The Citizens – Party of the Citizenry is a Spanish political party which describes itself as centre-left and non-nationalist...

  • South Africa: Democratic Alliance
  • Suriname: Democratic Alternative '91
    Democratic Alternative '91
    The Democratic Alternative '91 is a liberal party in Suriname. The party took originally its programme from the programme of the Dutch party Democrats 66....

  • Sweden: Centre Party
    Centre Party (Sweden)
    The Centre Party is a centrist political party in Sweden. The party maintains close ties to rural Sweden and describes itself as "a green social liberal party". The ideology is sometimes called agrarian, but in a European context, the Centre Party can perhaps best be characterized as social...

    , Liberal People's Party
    Liberal People's Party (Sweden)
    The Liberal People's Party is a political party in Sweden. The party advocates social liberalism and is part of the governing centre-right coalition The Alliance, which achieved a majority in the general election of 17 September 2006...

  • Switzerland: Green Liberal Party
    Green Liberal Party of Switzerland
    The Green Liberal Party of Switzerland , abbreviated to glp, is a centrist Green liberal political party in Switzerland. Founded in 2007, the party holds five seats in the Federal Assembly....

  • Tunisia: Social Liberal Party
    Social Liberal Party (Tunisia)
    The Social Liberal Party , abbreviated to PSL, is an opposition liberal political party in Tunisia. It holds eight seats in the Chamber of Deputies, making it the fifth-largest party in the Tunisian parliament...

  • Ukraine: Yulia Tymoshenko Bloc
  • United Kingdom: Liberal Democrats
    Liberal Democrats
    The Liberal Democrats are a social liberal political party in the United Kingdom which supports constitutional and electoral reform, progressive taxation, wealth taxation, human rights laws, cultural liberalism, banking reform and civil liberties .The party was formed in 1988 by a merger of the...

    , Alliance Party of Northern Ireland
    Alliance Party of Northern Ireland
    The Alliance Party of Northern Ireland is a liberal and nonsectarian political party in Northern Ireland. It is Northern Ireland's fifth-largest party overall, with eight seats in the Northern Ireland Assembly and one in the House of Commons....

  • United States: Democratic Party
    Democratic Party (United States)
    The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...


Notable social liberal thinkers

This list presents some notable scholars and politicians who are generally considered as having made significant contributions to the evolution of social liberalism as a political ideology:

Further reading

  • Martin, Keith D. (2010). A Liberal Mandate: Reflections on our Founding Vision and Rants on how we have Failed to Achieve it. Silver Spring, MD: Weit Press. ISBN 978-0-578-04365-4.
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