Classical liberalism focused on individual freedom and free trade between nations. During the Industrial Revolution, classical liberal values like private property and economic freedom led to growth in capitalism across Europe. However, early industrialization also brought poor working conditions, low wages, child labor and growing inequality that classical liberalism alone did not address. Over time, governments implemented new laws and welfare programs to protect workers' rights and improve living standards, moving toward a modern liberal approach.

2. Impact of Classical liberalism
Classical liberalism puts greater focus on individual freedom.
Several liberals argued that the free exchange of goods between nations could
lead to world peace. The changing economic and social conditions of the 19th
led to a division between neo-classical and social liberals who agreed on the
importance of individual liberty. Classical liberalism stresses the importance of
human rationality, and is an ideology that embraces the principles of
individualism:
 Rule of Law
 Rights and Freedoms
 Private Property
 Economic freedom
 Self-interest
 Competition

3. Industrial Revolution
The era known as the Industrial Revolution was a period in which
fundamental changes occurred in agriculture, textile and metal
manufacture, transportation, economic policies and the social structure in
England(1760-1850).The Industrial Revolution made Liberalism and
capitalism the dominant force in Europe. Economic changes expanded the
middle class and the promise of equal opportunity gave people a chance to
improve their standard of living and achieve material gain. The growth of
business opportunities and explosion of consumer products led to the
belief that capitalism and progress were one and the same.

4. Robber Barons
 Business owners were perceived as greedy because they didn’t share profits
with workers. Classical liberals would disagree, however, and say that they
were simply collecting the financial reward for taking business risks.
 Robber baron is a pejorative term used for a powerful 19th century American
businessman. By the 1890s, the term was typically applied to businessmen
who were viewed as having used questionable practices to amass their
wealth.

5. Income Gap and Cost of living
Income gap comprises disparities in the distribution of economic assets and
income within or between populations or individuals. Income gap varies
between societies and historical periods. Factors that impact Income gap are:
greater inequality in wages and salaries, wealth condensation, taxes, tax
havens, education, computerization/growing technology, racism, gender,
culture, development patterns, innate ability and nepotism. Cost of living is the
cost of maintaining a certain standard of living. Cost of living calculations are
also used to compare the cost of maintaining a certain standard of living in
different geographic areas.

6. Challenges of the working class
Classical liberalism was challenging for workers until governments created
legislation to protect the workers and improve the living conditions in the cities,
life for the new class of workers was demanding. Poor working conditions, low
wages, long hours, crowded living conditions, slums, poor sanitation were
prevalent.

7. Child labour
Child labour refers to the employment of children in any work that deprives
children of their childhood, interferes with their ability to attend regular school,
and that is mentally, physically, socially or morally dangerous and harmful.
During Industrial Revolution, workers, including children, were exploited while
rapid urbanization let to the creation of slums and poor living conditions. In
response, new ideologies competed for popular support. Among them were
socialism and Marxism. Each ideology attacked the new societal structures.

8. Charles Dicken and Industrial
Revolution
Charles Dickens portrayed the Industrial Revolution as a dirty and melancholy
era. In the novel, "Oliver Twist", hard times are expressed through tough labor
and long hours with little pay. The children in the novel symbolized the harsh
child workers of the time. Also, "Hard Times" portrayed the bourgeoisie of the
time as strict, demanding, and arrogant. This displays Dicken's views of the
upper class and their demanding attitude.

9. Evolution of liberalism
Because of the emerging problems in society, governments began putting
restrictions on laissez-faire capitalism. Modern liberalism extents classical
liberalism by widening the scope of every individual's freedom as an
empowerment and transforms the principle of equal liberty into social equality.

10. Factory Acts
The Factory Acts were a series of Acts passed by the Parliament of the United
Kingdom to limit the number of hours worked by women and children first in the
textile industry, then later in all industries.

11. Labour unions
The Industrial Revolution concentrated labour into mills, factories and mines,
thus facilitating labour unions to help advance the interests of working people.
Labour unions are groups of people who try to improve the working conditions
and wages for either a specific group of workers or an entire industry. The
power of a union could demand better terms by withdrawing all labour and
causing a consequent cessation of production. Employers had to decide
between giving in to the union demands at a cost to themselves or suffering the
cost of the lost production. Skilled workers were hard to replace, and these
were the first groups to successfully advance their conditions through this kind
of bargaining.

12. The welfare state
 As voting rights were extended to a wider range of the population in the
1800s, governments had to pass laws and introduce policies and programs
that were in the interests of many different groups if they wanted people to
vote for them. The introduction of government programs (EI, old-age
pensions) resulted in the eventual formation of the welfare state. This is a
society in which government plays a large role in providing for the needs and
common good of its citizens
 Some examples: education, health care, employment and disability
insurance, public housing, social assistance
 Classical liberals argue strongly against creating a welfare state because
they believe that it creates a dependence on government and discourages
innovation and motivation in people
 Supporters of the welfare state disagree and suggest that when people are
healthy, safe, and economically secure, they are better able to be creative
and innovative

13. Evolution of Individual and
Collective Rights
In the late 1800 with the evolution of classical liberalism, the individual rights
were better addressed. individual rights is associated with equality before the
law and protection from the state. Examples of this are the Magna Carta.
With the course of time, as Modern Liberalism evolved, the collective rights
were well pointed

14. Early Feminism
 With the Industrial Revolution, many women worked in factories under the
supervision of men. Many men were threatened by the introduction of
women into the workforce and fought to limit what jobs women could do, and
hours of work and wages for women
 By the mid-1800s many believed that equality should be extended to women
 The suffrage movement is considered the first wave of feminism

15. Protection of Human Rights
 In their pursuit of ensuring basic needs, a decent standard of living,
and safety and security for all people, liberal governments began to
define and identify human rights
 The United Nations (UN) adopted the United Declaration of Human
Rights in 1948. This document contains some of the rights that early
liberal thinkers believed to be essential to the progress of
humankind, including:
 The right to vote
 The right to be treated equally by the law
 The right to liberty and freedom of thought and worship
 The right to own private property
 By the mid to late 20th century, the extension of individual rights and
freedoms to all people regardless of their race, economic status,
sexual orientation, nationality, or gender, became a focus of modern
liberal governments
 Today, human rights violations are monitored around the world and
reported through the UN, the media, and other organizations

16. To what extent did the classical
liberalism meet the needs of
society?
Classical liberalism is not intended to meet the needs of society. It helps the
needs of the individual that in turn benefits society as a whole with a level off
efficiency that no managed system can approach. Classical liberalism is a
decentralized and cooperative system that responds automatically to needs of
society because there is personal incentive to help address the needs of
others.