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Political theory treats a wide range of concerns having to do with normative aspects of the state, power, individuals, and groups. Some political theorists concern themselves with more or less traditional attempts to justify and explain specific regime types, such as liberal democracies, or their underlying philosophies, such as liberalism. Others work on more recondite areas, such as the attempt to ground political and social action in the absence of metaphysical foundations or specific aspects of the history of political thought.

This entry, however, shall focus on several overarching conceptions important in considering political questions within contemporary liberal democracies. With this in mind, we will begin with three major concepts, liberalism, liberty, and consent, and then focus on three areas of specific concern for the student of business, distributive justice, property, and natural or human rights.

Liberalism

Liberalism is the term for the political philosophy that underwrites most contemporary Western societies. Originating in the early modern political thought of Thomas Hobbes (1588–1679) and John Locke (1632–1704), it still provides a philosophical foundation for contemporary political philosophers as different as John Rawls (1921–2002) and Robert Nozick (1938–2002).

Liberalism relies on several key assumptions about human nature, including the following: that human beings are fundamentally rational, that human beings are endowed with inherent “natural” rights antecedent to any social contract or political association, and finally that people are naturally competitive and basically self-interested. These assumptions suggest that people are capable of living freely and determining their own interests, as opposed to being controlled by passions, emotions, or irrationalities. As a result of these basic assumptions, several conclusions follow. The most important of these is that political organization should be oriented to maximizing the individual's ability to pursue whatever idea of the “good life” is desired, provided that it does not interfere with the abilities of others to also pursue their conception of the good life. In this sense, government is considered to be “instrumental” in that it is limited in size and scope to doing what the individual cannot do for himself or herself.

In the “classical” liberalism of John Locke, the government is restricted to the very basic functions of defense, policing, and judicial work and, to a lesser extent, regulation of commerce and public works. All other matters should be left to individuals' own inclinations. Government plays an important role in regulating disputes between individuals, but it should remain to the greatest degree possible neutral on the question of the good life, preferring to prevent infringements on individual rights rather than designating ways of living.

In a more abstract sense, political communities under liberalism are considered to be artificial constructs, designed to guarantee particular rights to individuals while avoiding any unifying conception of the good. Freedom of the individual is paramount under liberalism, and the particular kind of freedom emphasized in liberalism is termed “negative” freedom, or liberty (see below).

The classical liberalism of John Locke described above has its closest present-day American equivalent in the various libertarian philosophies, a prominent example being Robert Nozick's Anarchy, State, and Utopia (1974). Mainstream liberalism today, however, relies on a more expansive notion of the role of the state and its role in assisting individuals toward their conception of the good life. John Rawls perhaps best represents this position, arguing in A Theory of Justice that the state has a responsibility to ensure that all members of the political community have at least some minimal ability to pursue the good life. Rawls's position provides a philosophical basis for the contemporary welfare state.

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