Final answer:
The classical view, specifically within classical liberal theory, advocates for individual rights, limited government, and free trade, promoting wealth as freedom to engage in commerce. Strengths include support for personal freedoms, while limits include potential underemphasis on necessary government intervention during economic crises. Classical liberalism contrasts with other ideologies such as Nationalism and Communism.
Step-by-step explanation:
The classical view, as it pertains to liberal theory, advocates for several key principles. Firstly, it defines wealth based on individual liberties, the right to own property and the freedom of enterprise. Wealth is not just a possession of material goods but also the freedom to employ assets profitably and to engage in commerce within a free market. Adam Smith, a pivotal figure in classical economics, posited the idea that there are three levels of analysis in economic activities: the individual, the market, and the state, and that these players' interactions are key determinants of economic progress.
One of the strengths of the classical liberal approach is its support for individual rights, limited government, and free trade. This notion is rooted in the belief that personal freedom should be broad enough to encompass all aspects of human endeavor that do not harm others, as argued by John Stuart Mill. Conversely, some limits of the approach become evident in its resistance to a substantial governmental role in economic regulation, which can become contentious during economic downturns, such as the Great Depression, when more robust government intervention may be deemed necessary.
The classical liberal theory is historically contrasted with ideologies such as Nationalism, Communism, Fascism, and Authoritarianism, promoting significantly different views on individual rights and government's role. Moreover, the classical approach may sometimes be viewed as neglecting the societal need for government-provided social welfare programs which are often championed by modern liberalism.