This chapter describes the history of liberalism as presented by F. A. Hayek, a major propagator of the myth of classical liberalism. Hayek maintained that liberalism was originally the name for a synthesis of the constitutional principles of the old English Whigs and Adam Smith’s principles of political economy, but this is not supported by the history of the English words “liberals” and “liberalism.” Daniel Klein has recently published research on the word “liberal” in eighteenth-century Britain that purports to support Hayek’s history. But Klein fails to link his story to how the words “liberals” and “liberalism” were understood in nineteenth-century England and so fails to vindicate Hayek’s history.