John Locke and Political Economy
John Locke, an influential English philosopher of the 17th century, is widely regarded as one of the founding fathers of modern economics. He promoted the idea of limited government and strong property rights, and was a strong advocate of free trade. Locke argued that people should be free to pursue their own economic self-interest, as long as it does not infringe upon the rights of other individuals or interfere with public order. He also argued for minimal taxation, believing that people should contribute a portion of their income to the government only insofar as necessary. This article will discuss Lockes views on the subjects of the political economy, taxation, and the role of the government.
Locke believed that the state exists for the purpose of protecting life and individual liberty, as well as for its citizens to freely pursue their own economic interests without fear of persecution or unjust taxation. He argued that the government should establish laws to protect people from “the mischiefs of Civil Society” and ensure that individuals are able to pursue their self-interests without infringing upon the rights of others. He wrote that it is the duty of the government to maintain “regular, peaceable and moderate” government, which would encourage economic activity and entrepreneurship.
In regards to taxation, Locke argued that it should be used as sparingly as possible, and that it should only be implemented when it is necessary to fund the government’s operations. In Locke’s view, taxation should be based on the principles of justice, equity and liberty. He wrote that it should be “inviolably observed,” reflecting the idea that the people should be allowed to pursue their own economic interests without fear of excessive or unfair taxation.
In his Second Treatise of Civil Government, Locke argued that the government should not interfere in the economic decisions of its citizens, but should only step in when necessary to protect the public order and ensure that individuals’ rights are respected. Locke believed that the government should stay out of the economic affairs of its citizens, and instead should focus on protecting the rights of its citizens and ensuring that the laws of the state are enforced. He argued that the government should use its power to punish those who break the law and to prevent injustice, but not to enforce regulations or control individuals’ private economic behavior.
In conclusion, John Locke was a significant figure in the development of the political economy, offering his perspective on the role of the state and taxation. He believed that the government should be used to protect its citizens and to protect the public order, but not to interfere in the economic decisions of its citizens. Furthermore, he argued for the limitation of taxation, believing that the government should only impose taxes when it is necessary to fund its necessary functions, such as defense and protection. These ideas formed the basis of modern economics and Locke’s influence can still be felt today.