This is where most confusion arises:

Term Core Focus View on Government’s Role

Classical Liberalism

Individual Liberty & Economic Freedom Government should be limited to protecting liberty and order. It is skeptical of state power.

Modern American “Liberalism” Social Justice & Economic Equality Government can and should be an active tool to regulate the economy, provide social safety nets, and promote progressive social goals.

Modern American “Conservatism” Traditional Values & Economic Freedom A coalition that often blends classically liberal economic views with a more traditionalist, religious, and hawkish foreign policy outlook.

In a European context, a “classically liberal” party or newspaper is typically center-right on economic issues and centrist or libertarian on social issues. It is distinct from:

· Social Democrats (who favor a strong welfare state).
· Christian Democrats (who blend center-right economics with traditional social values).
· Populist Nationalists (who often favor protectionism and restrictive social policies).

In short, classical liberalism is the original “liberalism” of the Enlightenment, focused on limiting power to free the individual. This is different from its main descendant in the US, which now uses the word “liberal” to describe a philosophy that uses government power to achieve social goals.