Classical liberalism is a comprehensive philosophy both political and economic ideology that protects the civil liberties and economic freedom by limiting the powers from the government.
In the late 18th century and early 19th century, classical liberalism developed due to the industrial revolution in Europe and urbanization in Europe and the US as a result of social, political, and economic changes.
The classical liberals believed that the government was formed by the people and the main purpose was to minimize conflicts between individuals and to motivate workers through financial incentives.
The classical liberals advocated or believed that the central role of the government was to facilitate economic freedom which allowed every individual to invest, produce, process, create, and maintain wealth and trade freely with others.
Modern liberalism was developed after classic liberalism in England and the United States in the 19th century and early 20th century during the industrialization depression and Great depression.
Modern liberation believed in a mixed economy which would benefit the society both collectively and individually. The economist recommends a mixed economy since it is more stable and people enjoy a free market economy because the government intervenes less when there is a boom.
The government can intervene and command economy when the economy is in recession to prevent a crisis and improve the overall economy by providing social basic programs if the people are in need. The mixed economy systems have balanced the need for citizens and their freedom.
Modern liberal also believed in the rule of law since it protected the security and wellbeing of all the citizens from the authoritarian rule of the monarchs.