This chapter examines the logic of the Liberal position on social policy. There is abundant evidence that Liberal economists and political philosophers were deeply concerned with the condition of the working classes. In a Liberal society, the basis of any policy regarding social policy is the belief that all persons should live in reasonable comfort within the limits imposed by the state of development of the economy. The only Liberal case for a nationalization of education services would be if education were a natural monopoly, that is to say if the economical size of education unit were so large that competition between schools is bound to be eliminated in the end. The nearest approximation to the ideal Liberal situation would be to make retirement provision compulsory, and perhaps to make the amount of contributions depend on income.