The Liberal argument has traditionally been applied primarily to the economy, in which it implies that there is no basis for conflict in the marketplace. Because market exchanges are voluntary, and if there are no impediments to trade among individuals, Liberals reason, everyone can be made as well off as possible given existing stocks of goods and services. All participants in the market, in other words, will be at their highest possible level of utility. Neo-classical economists, who are generally Liberals believe firmly in the superiority of the market as the allocator of scarce resources
Liberals therefore believe that the economic role of government should be quite limited. Many forms of government intervention in the economy they argue, intentionally or unintentionally restrict the market and thereby prevent potentially rewarding trades from occurring