Definition of Liberalism

This article is part of the Basic Liberalism Course -> Module 2: Liberalism and its ethical foundations

Last updated: 2026-05-02

What is liberalism?

Liberalism is the unrestricted respect for the life project of others, based on the "principle of non-aggression", the right to life, liberty, and private property.

Definition given by Alberto Benegas Lynch(h). This definition condenses the totality of the libertarian idea; if you act this way, you can be sure you are acting in a libertarian manner; it is quite simple.

Live and let live.
That no one!, no person (rich or powerful), no company (or multinational), no state or government, takes your life, enslaves you in any possible way, or steals the fruit of your labor.
In liberalism EVERYTHING IS A VOLUNTARY TRANSACTION BETWEEN 2 PARTIES. Without threats, without imposition by force, only free and voluntary decisions.
You begin to lose your rights when you aggress the life, liberty, and private property of others.

Names attributed to liberalism

Libertarianism, liberalism, libertarian, minarchism, anarcho-capitalism, classical liberal, etc. What does each one mean?

The original name was liberalism (19th century) and it was a name that the US left stole (so to speak) at the beginning of the 20th century. Then, in the US, the term libertarian was born to mean something else, and to differentiate (in English) liberal from libertarian; it must be taken into account that in the US, liberals are left-wing and have nothing to do with liberalism. This is not the case in the rest of the world where the words libertarian, liberal, liberalism, libertarianism practically mean the same thing; all are grouped under the liberal or libertarian ideology.

However, within the libertarian ideology itself, there are different branches, some more radical, others more conservative. We summarize them below, from most radical to most conservative:

Explanation in a diagram

David Nolan was a US activist and politician who created this diagram in 1969. The diagram shows where liberalism and the other political ideologies are positioned. As can be seen, liberalism is at the top right, and is the option that offers the most personal and economic freedom.

Nolan Chart

Branches of each ideology

In totalitarianisms we have: Communism, Fascism (or Extreme Nationalism), Religious Theocracy
In the right we have from greater to lesser freedom: Liberal-Conservatism, Traditional Conservatism, Nationalism.
In the left we have from greater to lesser freedom: Social Democracy, Marxism-Leninism, Anarcho-Communism (greater personal freedom, zero economic freedom)
In liberalism, we explain them below

Branches of liberalism

1. Anarcho-capitalism

The most radical ideology, anarcho-capitalism is a philosophy that defends the total abolition of the State and the organization of society through free markets, private property, and voluntary contracts. It proposes that all functions traditionally associated with the State (security, justice, infrastructure) be provided by private companies in a competitive market. Thinkers of this current were/are: Murray Rothbard, David Friedman.

Main characteristics:

Absence of State: There is no government; everything is resolved through voluntary agreements and markets. There are no taxes.
Private property: It is the fundamental pillar. Everything, from roads to courts, can be privatized.
Individual freedom: Maximum individual freedom, as long as it does not violate the property or rights of others.
Non-aggression: Central principle that prohibits the use of force, except in self-defense or defense of property.
Practical example:
- Everything the state offers can be replaced by many insurance companies, and citizens are free to contract the ones with the best reputation.
- The police and armed forces would be replaced by private security agencies contracted by individuals or communities.
- Education, health would also be private (in Argentina this model has existed for years)
- There would be hundreds of insurance companies offering insurance for: disability, retirement, disability before birth, etc. In Argentina, private retirement was successful when it existed under the name AFJP.
- Justice would also be private, in which several companies could issue a verdict; the citizen can choose the justice company with the best reputation. In these cases, justice would be extremely fast and effective.
- Taxes would be ZERO, there are no taxes

2. Minarchism

The term "minarchism" arises from a kind of mockery between "anarchist" and "anarcho-capitalist" theorists; it is a combination of the words mini and anarchism, that is, neither "anarchism" nor "classical liberalism", a "almost" anarchism. The minarchism defends a minimal State, limited exclusively to essential functions in which it is strong: Justice, Security (internal) and Defense (external). Minarchism protects individual rights (life, liberty, property) through the police (within the country), the courts, and military defense (against foreigners). Everything else must be handled by the private sector (especially a free competition of insurance companies). Some thinkers of this branch were: Robert Nozick, Ayn Rand.

Main characteristics:

Limited State: There is a government, but only to guarantee security, justice, and defense against external aggressions. Taxes are extremely low (ideally less than 10% in total).
Private property and markets: Great emphasis on the free market, but with a State that acts as an arbiter to resolve disputes.
Individual freedom: Promotes individual freedom, but accepts a certain degree of state coercion (minimal taxes) to finance basic functions.
Practical example: A minarchist government could maintain an army and a judicial system, but would not intervene in education, health, or economic regulation, unless they affect the life, liberty, and property of citizens.

3. Classical Liberalism

Liberalism (in its classical sense) defends individual freedom, the free market, the rule of law, and limited government, but not necessarily minimal. Unlike anarcho-capitalism and minarchism, classical liberalism may accept a State with broader roles, such as providing public goods or regulating certain aspects of the economy, as long as freedom is preserved. Some thinkers of this branch: John Locke, Adam Smith, Friedrich Hayek.

Main characteristics:

Moderate State: Accepts a government with broader functions than minarchism (e.g., public education, infrastructure, limited regulation). Taxes are not low since the state must be economically supported.
Individual freedom and markets: Defends personal freedom and capitalism, but may tolerate state interventions to correct market failures or guarantee equal opportunities.
Rule of law: Emphasis on clear and just laws that protect individual rights.
Practical example: A liberal government could finance public schools or regulate monopolies, a mostly free market, and would try to reduce taxes to their minimum expression, although it would be difficult because it has to maintain the state.

Comparative table

Aspect	Anarcho-capitalism	Minarchism	Liberalism (classical)
Role of the State	None; everything privatized.	Minimal (security, justice, defense).	Moderate (may include public goods).
Taxes	Do not exist.	Minimal, only for essential functions.	Moderate, to finance public goods.
Individual freedom	Maximum, without state coercion.	High, with minimal state coercion.	High, but with possible state intervention.
Private property	Absolute, everything is privatizable.	Central, protected by the State.	Central, but with possible regulation.
Services provided by the state	None	Security, Justice	The majority

Important

In practice, anarcho-capitalism is theoretical, since there are no pure historical examples; it has never been implemented until now. Minarchism is also more an idea than a reality, although some countries with small governments (like Switzerland in certain aspects) come close. Classical liberalism has influenced systems like those of the United States or the United Kingdom in their origins.

Completing the Nolan diagram with the branches mentioned

Nolan Chart

Note:

Social democracy appears 2 times because it is large in the center-left, and sometimes tends to give more or less individual freedom.
Fascism:
- Although it is different from communism in that it rejects the idea of the "class struggle" and replaces it with "nationalism". It does not seek the total abolition of property, but its total control by the State. In these senses, it nullifies the individual and economic freedom of people.
- For Austrians, the relevant axis is not left-right but interventionism vs. free market. Fascism, Nazism, social democracy, and communism are variants of statist collectivism. The difference is one of degree and rhetoric.

Basic Liberalism Course

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Last updated: 2026-05-02

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