Positive state

If Mill’s differentiation of actions is viewed in the context of classical liberalism and laissez-faire individualism, his admission of other regarding actions is a departure from what Smith, Ricardo, Spencer, or Malthus would argue. This departure provides room for the State to interfere when necessary in the interest of the society. In order to envisage the role of the state, it was important for Mill to realize whether pursuit of individual happiness would result in social happiness. Given the differences in the strength and historical conditions, each individual will gain unequal opportunity. Further, the qualitative aspect of the individual’s life may also require the state’s action. Flowing from his revision to the Utilitarian principle and differentiation of liberty, Mill’s state appears to be a positive and welfare state. His position on the roles and functions of the state may be summarized as follows:

• Mill’s entire thought supports a concept of the state that provides creative functions, atmosphere for freedom of speech and expression, inculcating virtue, and seeks peace and moral development. He also supports prohibitive functions of the state-state interference against social disorder, lawlessness etc³⁹
• Realizing that land, industry and knowledge were restricted to a small minority, Mill supported use of the state to remove obstacles in the way of the individual’s development and to make life tolerable for the masses
• Mill opposed the rights of inheritance and rent earned by landlords. He treated rent as ‘unearned income’ and advocated taxation on the incomes of the landlord. This was to be used for general welfare
• Mill supported compulsory education supported by the state, out of taxation. This was also necessary for moral and intellectual development of the masses
• He supported right of the State to intervene in the economic affairs. He supported legislation in case of children, limiting working hours, control on monopolies, governing wages and compensations
• Mill feels that only representative governments should undertake welfare activities; the state can liberate individual from certain contracts such as slavery; Mill felt that if the given implication of contract is not fully understood by many, there couldn’t be free contract if not subject to state interference
• The State for him is a ‘mutual insurance company’⁴⁰

Mill’s concept of individual self-development is based on positive liberty; his individual is not selfish and profit-seeking, but is self-realizing. Mill’s state is a developmental state. He supports a liberal government and a liberal society. On a whole, Mill provides a basis for a welfare state.