Problem: The liberal political agenda in the United States was confronted with a severe challenge during the First World War. Significant intellectual and political developments occurred as a result of it, and it posed a threat to a number of the fundamental principles of liberalism. Free trade, deregulatory policies for the economy, reduced tax rates, conflict with labor, and a lack of concern for economic inequality. From the beliefs of philosophers such as John Locke, Adam Smith, the Marquis de Lafayette, and the people who established the Constitution of the United States of America, believed in the rationality of human decision-making, individual rights, and the significance of a national state.