in what three ways does "rule of law" apply to classical liberal economics?

From Internet:

Classical liberalism" is the ideology advocating private property, an uninterupted market economy, the rule of law, constitutional guarantees of freedom of religion and of the press, and international peace based on free trade. Up until around 1900, this ideology was generally known simply as liberalism.

Did you know?

Did you know that the "rule of law" plays a vital role in classical liberal economics in three distinct ways? 1. Predictability and Stability: The rule of law ensures that the legal framework governing economic activities remains consistent and predictable. This stability encourages investors, entrepreneurs, and individuals to engage in economic activities with confidence, as they can reasonably anticipate the legal consequences of their actions. By providing a level playing field and reliable enforcement of contracts, the rule of law promotes economic growth and development. 2. Protection of Property Rights: Classical liberal economics recognizes the fundamental importance of protecting property rights as a means to encourage economic productivity and individual prosperity. The rule of law ensures that property rights are upheld and protected by the legal system, preventing arbitrary seizure or infringement. This protection fosters investment, entrepreneurship, and innovation by guaranteeing that individuals can reap the rewards of their efforts and enjoy the benefits of their property. 3. Limiting Government Interventions: The rule of law ensures that the power of the government is constrained and its interventions in the economy are carefully regulated. By establishing clear limits on the authority of the state, the rule of law helps prevent government abuses and excessive regulations that can hinder economic activity. It promotes a framework where individuals are free to engage in voluntary exchanges and pursue their own economic interests, contributing to greater economic efficiency and societal well-being. Understanding the significance of the rule of law in classical liberal economics highlights its role in fostering economic growth, protecting individual rights, and maintaining a balanced relationship between the state and the economy.