AO1: Both classical and modern liberals are united in their support of a free-market economy endorsing competition in business and commerce. AO2: All liberals believe in the productive energy of a free market as the main driver of the economy and the best economic model to ensure prosperity and growth. Nothing drives the economy as much as a free market. AO3: Thus Liberals agree about the free market economy AO1: Both classical and modern liberals support private property and argue that large scale state ownership is unproductive. AO2: All liberals would agree that private property should form the basis of the economy and agree that the state should not have widescale involvement in ownership of industry (Locke). State ownership undermines the free market. AO3: Thus Liberals agree about the limited role of the state in the economy. AO1: Both classical and modern liberals agree that the economy should be designed to enhance individual freedom AO2: All liberals support providing the maximum freedom to the individual via the economy - believing that the individual is the motor which powers the economy. Individual entrepreneurs create wealth which powers economic growth. AO3: Liberals are therefore in agreement over the economic power of the individual

AO1: Modern and classical liberals disagree over how much freedom a free market should enjoy. AO2: Classical Liberals believe that the free market should be unfettered by the state arguing that this undermined the "invisible hand" of demand and supply. Whereas Modern liberals recognise the need for restrictions and regulations on the free market to support vulnerable workers. AO3: Thus it is clear that there are key differences within liberals about the extent of the free market. AO1: Modern and classical liberals disagree over the size and role of the state in the economy. AO2: Classical Liberals seek a minimal state in the economy based on their views of egoistical individualism whereas modern liberals reject this and support an enabling state based on their view of developmental individualism. (Rawls) AO3: Thus it is clear that there are differences within Liberalism over the size and role of the state. AO1: Modern liberalism departs from classical liberals by having a positive view of the role of welfare in the economy AO2: Modern liberals again depart from classical liberals over the provision of welfare. Classical liberals believe that individuals should be self-sufficient and self-reliant based. They recognise freedom in its negative sense - that individual should be left alone. Moreover they reject the notion that individuals should have to pay high taxes to provide welfare. Whereas modern liberals believe that welfare can support individuals to become free - positive freedom - to create a genuine meritocracy. (Rawls). Free individuals are able to develop their skills and talents and fulfil their potential, maximising freedom for all. AO3: Thus it is clear that modern and classical liberals have significantly different views on welfare.