I
the fall of the Berlin Wall in 1989
and the rapid collapse of communist regimes throughout Eastern Europe and
the former Soviet Union
surprise most Western scholars
and soviet experts for some however
it confirmed what they had suspected all along
that communism was a vision of society
ultimately doomed to failure one thinker in particular had spent a lifetime
trying to show why communism
couldn't work and why trying to force it to work
would prove disastrous before he was finally vindicated
Friedrich August von hayek was dismissed
ridicule and ignored yet in the end
even defenders have socialism came to concede that he was writing
door markable degree IX personal and professional fortunes
and the intellectual battles and pretty found himself
are also the story of the 20th century
in his 25 books and hundreds of articles
hired articulated an elaborate and inspiring vision love the free society
his insights continue to shape how we think about the social and economic
problems of our time
Liberty fun proudly presents a profile
in Liberty life and booked %uh friedrich
August on higher
good descended from
Austrian nobility Friedrich August von hayek was born in 1899 in Vienna
the heart the austro-hungarian empire and one of the leading intellectual
capital serve Europe I experiments were deeply enmeshed in that world
his father was a doctor and in Daman & Partners
his maternal grandfather had served as president to los tres
statistical Commission I it's two brothers were both become professors and
political scientists
Hansson anatomy and Eric and chemistry
his cousin Ludvig vid in style and would become famous
as a philosopher
IX first intellectual interest was in the sciences
especially bite me as a child he helped his father
categorize help I'm plans in addition to scientific pursuits
he took up photography in the theater and physical interest such as
team sailing and mountain climbing in his teens
higher turned to the study of human learning and behavior
and for a time he considered becoming a psychiatrist
in June 1914
a single occurrence set in motion a series of events that would recast the
world
and the life but young hayek Archduke Ferdinand of Austria Hungary was
assassinated
setting the stage for the war to end all
the
way
on
no World War ones affects with devastating to the old order
the long-standing austro-hungarian down as they are the haps words was out of
power
in russia the romanov dynasty had been destroyed
and communism was the new social order hayek like many young Europeans after
the war was drawn under socialism
for hire the appeals socialism lay in its attempt to solve social
Hills by applying scientific principles to government planning
and control of the economy iraq was ball towards the Fabian variety of socialism
which favored peaceful gradual government interventions
rather than the sweeping and violent revolutions advocated by Marxist
socialist
animals captured Marxist socialism. the country then I counted
socialist minutes marxist title doctrine
form and the Vienna socialists
maxis fam more books than than most other places
doesn't depend higher kantor the University of Vienna
a major center of intellectual activity the war had created poor material
conditions
but the school was still a vibrant and exciting place
it was here at the university that Hayek was first introduced to the Austrian
School of economics
this group of scholars extended the inside so the 18th century economist
Adam Smith regarding the workings of the free market economy
in his classic work The Wealth of Nations
Smith had sought to explain the tremendous growth in commerce that had
taken place in the West
doing the 17th and 18th centuries in opposition to the dominant views of his
day
Smith saw that a prosperous economy arises not from the actions of
governments
but through the voluntary actions are buyers and sellers
in the marketplace in Smith's understanding
no one person or group dictates what the supply and demand of goods will be
rather each person act in his or her own interest
as long as exchanges are allowed to be free involuntary
neither buyer nor seller will trade unless they both stand to gain from the
transaction
according to Smith the ultimate consequence of all these various
exchanges
is approaching and orderly economy Adam Smith was also the first to point out
the fundamental importance all the division of labor as part of a
prosperous economy
through division of labor the particular knowledge and skills of individual men
and women
contribute to the creation of a vast number of goods
this inside continues to be of central importance to our understanding
a well ordered society Smith's inside 3 extended by the Austrian School
economists
beginning with the publication of chrome angers path-breaking book
principles of economics the central point of members work which was
published in 1871
was that the value of any given product is the German
month by the amount of labor that went into making it or by the costs of
production
but by the individual desires are the buyer
and of the seller each consumer determines how much of his property he
is willing to give in exchange for someone else's product or service
likewise eat producer determines how much he or she will accept for their
product or service
trade will only take place if it benefits both parties
intern exchange and only those individuals involved in the exchange
have complete knowledge of the benefits they seek and what they are willing to
give an exchange
this emphasis on the individual and subjective nature of economic
information
which was begun by mango and continued by the Austrian School economists
would prove to be the bedrock a high x homework
the Austrian School convinced tire that there can be order
such as the order that exists in markets without a centralized designer
this idea open the door to his own insights regarding spontaneous order
the division of knowledge and the role of prices
in conveying vital information and the rule of law
these ideas would set him on a collision course with the dominant political
trends at the 20th century
in 1921 hayek received his doctorate in law
and two years later was granted a doctorate in political economy
while at the University of Vienna he had studied philosophy
law and economics it was shortly after taking his formal degree
in political economy that high akhmed Ludvig via meese's
for the first time missus was director of the Austrian chamber of industry
and one of the leaders of the Austrian school's second generation of scholars
he would have a deep influence on high x work
so they came to him was a letter of introduction
perform regionals Mills teacher which is Katniss a promising
Commons museum promising new columns have never seen you have my lectures
when and became became vacant
and South rules meese's book socialism
had a significant impact on high x economic thought
in it meese's attempted to show that in economic terms
a socialist state was technically impossible
meese's argue that since socialism denied a system Obama and Terry
exchangers
the relative prices that provided signals for decision-making were missing
without these signals coordination other activities with then the economy
is impossible
in 1924 hike began attending missus private seminars
these events were considered the center economic debate
Indiana it has come to him s a
young student no comments just swallows his fields completely
as is a as it was I came to him
holiday was NDK crash may have meant to cause
push to my list actually more critical fashion
and to paying for 10 years in close contact with him and miss him conclusion
sure the whole Ince
but whose arguments for Nepal was perfectly convincing feels good stewards
in 1927 hi again missus call founded the Austrian
Institute for business cycle research
the board included prominent economists young hired the institute's director
was beginning to solidify his reputation
as a world-class economist in 1929
hike began his first teaching position at the University of Vienna
that year also saw the publication of his first book
monetary theory and the trade cycle
in this work I expanded on the Austrian schools theories by developing the idea
that the prices of goods and services
including the interest rates are information signals which are vital to
the independent plans have consumers
and producers the main point of Hayek's book was the usually these information
signals make possible harmonious
and spontaneous overall adjustments within the economy
however government intervention in the economy can cause faults or distorted
signals
which can ultimately lead to economic ruin
the core of the argument was simple in a well-ordered economy
prices convey knowledge and for the economy to function properly
that knowledge was not be distorted by government intervention
this basic idea what said hi again direct confrontation with two major
trends and economic thinking
socialism and Keynesianism
for higher economic knowledge is dispersed among individuals
this division of knowledge as it would later be called
makes the central planning desired by socialists
impossible if prices are a wave coordinating the plans have individuals
those plans can only be known by those individuals
then any order provided by central planning
would simply be arbitrary and most likely destructively economic prosperity
high x insides were also directly at odds with government policies designed
to enhance consumption
either through monetary inflation or through government spending
these policies with a very hard John Maynard Keynes
more moderate interventionism
with his first book hi a cadre buff the two most dominant trends and economic
fought
in England higher could come to the attention of Lionel Robbins
who soon to head the prestigious London School of Economics
or LOC the other see was looking for someone
intellectually capable of taking on John Maynard Keynes
at the University of Cambridge
robbins invited hired to come to England and give a series of four lectures
hike literally swept the audience of its feet
and he put forward a view the Great Depression that
seem to be both accurate and complete
higher was invited to become a professor at the LOC
and in 1931 he and his family moved to London
soon hi again robbins by now a good friend
were emulating missus by holding their own private seminars
these lively gatherings attracted many international economists
it was during his time at the LSC that higher clay down the bases for his
larger theory of spontaneous order
working out the implications of his idea that prices are
information signals he began to extend this insight into the workings of
society in general
is the idea that there can be great orderliness
in a society even though there is no one doing the
ordering to achieve this orderliness however
it was essential that prices be allowed to fluctuate without interference
societies cannot be organized
without the signals that come through
a free enterprise system using
prices and profits hike thought that prices and profits
primarily convey information
high x they reopen permission or knowledge was groundbreaking
markets as a system see utilize Asian of knowledge
are which nobody can process as a whole which in this was a market situation
leads people to
a mmm it in each of people whom settled New
me usual facilities which include bank information
all this condensed in abstract signals
and that are all sit a hellhole modern
length and production could you advise own thanks to his mechanism
is he believes the base is not only of my economic but as much
my political views his sim
most important contribution is to extend
the paradigm or idea about the Smiths about the
divisional labor and may keep getting to division all
knowledge you need the market because you need a way in which people can
ken benefit can capitalize on what they know that's different from other people
and in the cut and in the end the corset this capitalizing on their specialized
knowledge
they share this knowledge with other people this linking up the dispersed
nature of knowledge
with the theory of spontaneous order lay at the core of Hayek's distrust of
central planning
in his view no central planner could gather together enough knowledge to
create the same order and richness that occurs spontaneously
in a pre-market if
production had been directed by a central planning agency would they have
directed in the Internet technology which is so revolutionizing human life
hike argued that central planning authorities don't
develop that sort of planning ability that their
inevitably bureaucratic and they prevent the noon the creative in the divers from
emerging
in there what you wanna do is have a society in which individuals are free to
do
as much as what they want whatever they want to do as long as they're not
physically harming someone else
to hayek central control over individual economic decisions
leads inevitably to control over what individuals are allowed to do
and the ideas they are allowed to develop
have to impose on the issue in its tighter
a ninety Kadapa dist he placed a beautiful quote
at the beginning of every chapter of The Road to Serfdom had
and there's a quote by Belloc he placed at the beginning of a chapter
where he says between hunched let me see if memory serves
exact frumpy look the control up the production
love wealth is the control of human life itself just
does command all you with us metric in Dayton trekked in
these insights led high again to a prolonged debate with the socialist
thinkers have his day
a complicated I love that became known as the Socialist calculation debate
on his side higher extended ministers earlier argument that socialism was
technically impossible
both hayek and missus great accomplishment
was to turn the question of socialism from a moral question
to a practical question it wasn't
whether individuals are good enough for socialism
it's a question of whether or not socialism
can practically be the way a society can be organized
higher argued that without really adjusting prices based in private
property
there were no signals for socialist planners to use in calculating
the relative values of goods and services
and there was no information for deciding which production methods were
most efficient
but scholars influenced by socialist ideas were not persuaded by the
arguments have higher core missus
perhaps the most vocal critic of the Austrian School
was Oscar longer a prominent police socialist
according to longer meese's had provided a service to the socialist
by pointing out the need for a more careful system %uh
economic accounting that would guide production resources
in a socialist economy rather than pointing out the impossibility a
socialist calculation
said longer the Austrians had merely pointed to a problem the socials
thinkers but certainly Sol
learns socialists always operated on Steam to
the acid international each
can common society from a bomb
and the what Oscar line it it for example was only two
switch the lead from say King sometime pros and all those
but novel into spots all over days past
into the enlightened economists that could run
and operate the economy from a bomb despite having missed the real point of
Hayek's criticism
longer arguments were persuasive with both academics
and the general public public opinion was firmly on the side of more
government control
over economic life and firmly against
iraq's ideas equally formidable in the arena
both academic and political opinion would be the ideas of John Maynard
Keynes
rather than advocating the complete nationalization of the economy
as the socialist-led gains and his followers contended that the government
should stimulate economic growth through monetary inflation
and through spending on public projects this round directly counter to high x
contention that government intervention
distorts the information conveyed by prices
higher argued that although under Cain's approach
there may be indeed short term stimulation of the economy
prices will no longer transmit accurate information between producers and
consumers
this would result in the wrong things being produced
in the wrong quantities at the wrong time
or what Austrian School economist referred to as Mel investment
the debate between Hayek and Keynes would continue until canes death at the
age is 63 in 1946
and it was a debate that at the time IAC appeared to lose decisively
beginning in the early nineteen thirty's Keynes and Hayek sparred publicly on
how to break the Great Depression that held the world in its grip
a central issue was work role the government should play in attempting to
increase implement
and stabilize the economy for high-tech
it was a matter of letting this system which had been
actively discord noted through government inflation at the money supply
recover naturally artificial intervention
only postponed and aggravated the necessary correction
canes vehemently disagreed Keynes's view was that now was the purpose of
government to
get the economy rolling again to prime the pump
for there to be government work projects for there to be government transfer
payments
whatever could be done to get the economy moving again
underlying these disputes was another point of disagreement between these two
great thinkers
I have concentrated on individual transactions between buyers and sellers
gains however argued that the important figures were economic aggregates
sector's total unemployment and gross national product
higher kill that aggregate figures only hide important economic information
which is necessarily individualized and dispersed
hayek reviewed Keynes's treatise on money which is just coming out
just slamming and then canes responded with a review of
high x own book prices and production which keen's thoroughly demolished
in the Canes debate as in the socialist calculation debate
hired press the notion that government economic planning was inherently doomed
by the knowledge problem no bureaucrat or central planner good ever possess
enough knowledge of the individual needs
the design and efficiently functioning and prospering economy
for higher-tech the myriad calculations government planners would require in
order to address the situation
made complete and current knowledge unachievable
in addition and perhaps more important
the kinds of information necessary for successful planning are impossible to
centralize
this information consists of non-scientific
personal particular knowledge or what higher
called knowledge of time and place
his alternative was the spontaneous order
a free market which efficiently and accurately made these calculations
every day what happens in a modern society
is the absolutely unpredictable result
of millions have individual decisions going on all the time
I think that's a very interesting idea and its
powerful because it's so counter-intuitive
the higher canes debate took a decisive turn in 1936 with the publication of
Cain's famous book
the general theory unemployment interest
and money this work one of the most influential books on economic policy in
the 20th century
defined canes attack on classical liberal economics
but despite its significance higher did not
mount the public counterattack he thought that Cain's latest theory would
not succeed
and he knew of Cain's habit are frequently changing his mind
hike would later admit that his failure to publicly respond to the general
theory
was a serious miscalculation he would not get another opportunity to publicly
debate canes on these issues
the greatest boost the Canes the reviews came in america
where voters turned out the state hoover all the dynamic roosevelt
roosevelt initially gave chains ideas
half-hearted support still hoping to balance america's budgeting
but will economic situation worsening FDR embraced canes ideas
and dramatically expanded the role of government in american life
the late nineteen thirties and early nineteen forties were difficult times
for higher-tech
in addition to losing the popular verdict on his ideas
hayek watched as the clouds have major conflict gathered across Europe
one of the most prolific social forces of the century was about to plunge the
world into its second
global war I it was especially frustrated
by what he saw as his colleagues misperception
what was unfolding external circumstance of environment
made it necessary for me to explain claim to my English colleagues
firmly believe said paid German capital's
started reactions promising
socialist developments said to wear long johns interpretations
to 'em moved an outspoken opponent of the nazis
hired charge that the evils of National Socialism
worlders same variety is the heirs of Marxist socialism.
that resulted from the location of the Liberty and the dehumanization of those
who did not
the the bureaucrats preconceived idea
love what society should look like fascism was not
as the marxist then left does tried to research
the result of capitalism it was it's very
and purposes high XD concerned about the events it is time were leading him to
apply his ideas
to a broader social context world war two had the effective change in high x
focuses interest
and whereas during the nineteen thirties he had been primarily a technical
economist
participate in the technical economic debates have the day
from the nineteen forties on word in his career he lived until 1992 so that's a
half-century
he basically moved into the area of social philosophy
and I think that it's here that his greatest contributions were
in 1944 Hayek was made a Fellow of the British economy
that same year a pivotal event but again propel higher conder the international
stage
the publication in England I V is most famous book
the Road to Serfdom this was a hugely popular broadside in which I
made the claim that even mild government intervention
could ultimately lead to a totalitarian state
higher had grave concerns about communism
and russia's role in the world but he was also targeting socialism closer to
home
there was quite a bit of central planning at that time
you think that's what the Labour government Labour government came in
immediately after the the end to the the
love the European more war against hitter and
much will they wanted to do they wanted to introduce
is a former socialism IX the Ceres
in the Road to Serfdom was simple enough
even piecemeal planning leads to unintended consequences that require
even more planning
and eventually can lead to attempts at central planning
and totalitarianism government errors would be compounded when the same
planners who made them
then tried to set them right leading to even more government intervention
ultimately the people in a society would be made to fit the bureaucrats plan
rather than the other way around a free government goes along and
enforces but a mistake it is made
there's no automatic a fictional independent he made it
crystal clear to anybody who who was willing to
open up their minds that you couldn't possibly
gather enough information in a Central Bureau
to direct a vastly complex economic system
you can barely do it for a simple village economy but at least there
they wouldn't be agree just errors even well-intentioned states would eventually
claim the power to make any decision necessary for the state's well-being
and since morality what at some point be sacrificed to state effectiveness
those who founded easy to make such trade-offs
would ultimately rise to the top this further in danger
Liberty I think people wet in the west
there don't understand his point where
the cost a they thought they have already got
to the worst politicians in the wallet
but def daily pundit China they were really low how
or informs the maturing how the Geo worst
get on the top reaction to the Road to Serfdom was swept
on both sides of the fence one lecturer told an American audience that hayek
statement about state intervention leading inevitably to totalitarianism
was so obviously untrue the higher could not really have mended
many others expressed a different view one washington Post writer has sent
suggested that the book was the first shocked in the intellectual battle
but would turn the tide in favor of conservatism
and many believe it had the ultimate affect higher
hope to accomplish the Road to Serfdom
was not the prediction it was a warning
it it was a warning that the Eve we
embarked on a certain wrote there would be unintended consequences
the Road to Serfdom has been published in more than fifteen languages
and has been inactive Brent somewhere in the world since 1944
although ban behind the Iron Curtain numerous typewritten copies were in
constant circulation
in countries where liberty is not the norm
IX warnings were especially poignant boss hayek
and his critics have net and have never
living under a surf term
a $2,200 Terry G regime bad hayek
has a much better I'm standing up this abyss
kind of society that 11 live under
the book's popularity prove both a blessing and a curse
it did get high x message out has large numbers of the Road to Serfdom were sold
during a frenzied book tour in America
hike became genuinely famous in both the United States and Great Britain has
result
are the Road to Serfdom any became known as the most prominent
classical liberal or libertarian or rented
intellectual or scholar in the world but the enormous popular appeal the Road to
Serfdom
mask a widely-held academic disdain for its author
he had dared to disagree with the prevailing confidence of
academics in socialism and I think that was one of his outstanding
characteristics
was that he was willing to take unpopular views and persevere with them
even when he would be ridiculed in criticized by his
colleagues and peers for doing so I think it's probably one of the
keep best examples a well-reasoned argumentation i've seen
you know n in the 20th century but it was considered unscientific polemic
he'd had such a rough handling I mean he was not widely
welcomed I would ask academics to meet him in some would do so
but some academics academics which are not I would be dead
I occurred known that he would suffer as the result of writing the book
just came in a sacred just a2 end of sync I eat
into Chacin Flushing New Moon DVD
Angeles stated you can pass academic community event largely a similar issues
fr I connection two-story high and yours
wes is a self-taught man a petition stand
gotten even among academics labor was elected
overwhelmingly in the general elections have 1945
and proceeded to move in exactly the opposite direction
to that which I could recommended many industries were nationalized
a vast welfare state was established
on the world stage free-market ideas were rapidly losing ground to Keynesian
theories
this was in part the result of the popular perception that
economic planning during the war at successfully mobilize resources
and could do so in times of peace
hired however argue that equating a peacetime economy you
wartime planning was a fundamental hair
but the tied up academic opinion was solidly against them
higher recognize the need to preserve the ideas of classical liberalism
so he decided to create and International Society of scholars
to encourage renewed exploration into the political economic and cultural
foundations
a free society this gathering became known as
the mount color in society tag
felt like a.m. that the whole world was going socialist
in mediately after world war two
and he felt like there was a desperate need to to at least establish some
connections between those who still held to ask a liberal notions
and so he got the ball player on society organized in 1940 Salem
went that I had to yet dusty said courses some dogs
hayek through this grand assembly or gathering
overcame the isolation of individuals
and United liberal scholars from history political science
economics the and philosophy he could
all of whom felt motivated to defend the free society
it to Sam Capac that the Alan them axe your
Delphi Heights is for police to treat in 1947
the group met in a small town in the Swiss Alps
the first conference lasted ten days
that first meeting and the larger one that followed at the 1949
brought together intellectuals from a world
still devastated by the recent war
this meeting was the first time that Germans had met with american
which since the war that some Hollanders
neverland people had met with german bitch Shin said been in concentration
camps
there were many motional Eve ensure
Xin Jin took place hayek served as president of the month
power in society in till nineteen sixty then as
honorary president until his death
his vision of an ongoing formal gathering of like-minded
intellectuals was realized
in 1955 Anthony Fisher
home hi I could met almost ten years before ask I it for advice on how to
affect change
in the direction of increased freedom
Hayek said to him that he should emphasize
ideas that ideas were far more important and practical political activity
hayek famously said develop politics
that was fish aside if his idea was to go into politics and change things
come klutz I have her
apps option some five branches best trends
whole a synthesized call cell
Kat tied up in government were counting has since been States panama hats and
scarves
as a result of his conversations with IAC Fisher founded the Institute of
Economic Affairs in Britain
Fisher was in session intellectual and he was a simple well it was a
basic practical farmer with dirt under his nails what kinda stuff
and so he eventually got round to a meeting be in a few others and M
putting up a small sum of money to get the IAEA started I mean we were
a child higher absolutely
higher believe that resources should support education
the Institute for Economic Affairs would be the first of many international
think-tanks inspired by iraq
organizations devoted to research and publishing on liberty and free market
economics
in 1950 the University of Chicago offered hired an appointment to the
prestigious Committee on social thought
which he accepted once again he found himself
in 10 the center's a economic thought one of the really interesting things
about hayek
is that he was at the University of Vienna he was at the London School of
Economics who was at the University of Chicago
all tremendously vital place is intellectually
the University of Chicago had taken the risk of burst publishing the Road to
Serfdom
in america and it was considered a center for free market point
the school was also located in the country considered a ball work in the
effort to contain communism
the move to Chicago was a good win for hayek
his appointment to the Committee on social thought at the University of
Chicago
the enabled him to cut back his teaching and to do research in areas
other than the economics he sometimes commented that
an economist who only knows economics really doesn't know very much
he had much more of a holistic approach to knowledge and one that
tried to bring together thoughts from a number of disciplines
announced in chicago the seminar on scientific method and particulars
differences international social sciences
and his attack just some of the most distinguished members of effective
Chicago engine decal for me
and she will night and a few people it s cross just sitting in my 70 discussing
the scientific method
and it was one of the most exciting experiences in my life
the years in Chicago were productive in 1952 hike published a book on knowledge
and the mind
entitled the sensory order hospital
I had published a hutu serfdom in 1944
I wanted to take leave from to solve such as soldiers couldn't myself
a professional college besides both
that I thought I would do something quite different than the term to my
psychological ideas
in the century order as in high-tech social and economic thought
multiple and dispersed connections make the system work
information is spontaneously ordered through specific signals
and trial-and-error learning is an important basis for the brains
performance
an earlier peoples brains different we process information differently
everything we do helps to build up a personal
classifying system that will differ in some respect from somebody else's
so I see this century order as being an important issue that he needed to
address for his
critique of socialism in 1954
hayek tackle jet another field history
it was widely believed that the industrial revolution had impoverished
vast numbers are British Citizens
higher challenge that claim in his introduction to
capitalism and the historians a collection of essays by leading scholars
for hayek the industrial revolution was an example of spontaneous
order in action vast unplanned changes in the economy with the result of an
untold number of individual economic decisions
based on subjective values
hayek believe that an impartial evaluation of the evidence
which show that living standards actually improved
with industrialization contrary to the
sentimental the use of historians to romanticize the pre-industrial a job
agriculture
Hayek was now ready for his most ambitious work to date
in 1955 he visited Cairo
where he lectured on the rule of law these lectures form the basis for what
some consider his best work
the constitution of liberty published in 1960
the don't think dusty for fastened to fly height
I would think the book the constitution of liberty
bass is the modern compendium liberal ideas out
fly high Tc 18 Ste bias
near control nowhere is the importance a free society
for our civilization as well stated its
as in this book at soul %uh the I was Chris Borland C++
PNT simple the for possible to fight
the constitution of liberty is surely the most important word
that was written in this and the past century and
one can likely say the most important work since John Stuart Mill
orange the backside John Stuart Mill
the constitutional liberty recast the long-standing ideas have classical
liberalism
in modern terms hi concludes the constitutional liberty with the word
words that John Stuart Mill used to preface his
work on Liberty a century 24 on Liberty a century before that the
the Grand leading principal toward
which every page in this book
leads is the promotion of human diversity in its richest potential
according to hayek the role of the state is to ensure freedom and human progress
through the rule of law in making this claim
he was careful to define what law is not
the call now Lord made me think through some old law and medicines
it is not the we love the rulers
which is a governing the society about
the metaphysical doctrines behind at the law
which is very good a regulating our daily lives
weekend to make a law we count me in
the county discover loss
for hayek law properly understood is based on precedent
a system of trial and error in which the most effective social principals are
passed down from one generation to the next
he saw some %uh the great traditions are the anglo-american system
to have evolved over generations in terms of
principles such as fair play justice
private property contract many of society's most important laws or rules
are not the products have conscious design according to hayek
a sort of cultural evolution passes along the most effective rules
to be refined over time through custom tradition
and experience his theory above
I'm spontaneous orders is extreme importance
languages it is a spontaneous orders
nobody invented language no authority ever
said the rules for speaking a writing
them hayek at tells us that
law is like God we are living all the time
thanks to the system of rules of conduct
which we have not invented between not to sign military large Donald Rumsfeld
and
people have tried out over the time different strategies to solve problems
and they were able to learn which kind of generalized strategies work better
than others
and these experiences they have condensed in ruth's
these rules of course are interpreted by our parents are
are so are are Anna
authorities they're interpreted by those with whom we interact so they do change
gradually but nevertheless
these rules are are not have our own making its law that creates freedom
by creating a rational framework
within which individuals can leave their life so I think that
hikes underlying idea and political philosophy is
that liberty is the supremacy of law IX understanding of the rule of law
involved to critical points
the first was that society's rules must be general
they must not become specific centralized commands
there's also keeps them from becoming instruments for granting special
privileges
true freedom implies equality under the law
a society in which I can deed was an impersonal and counter
presuppose certain basic goals I and foremost
on everybody was in that territory
iraq was concerned about how democratic governments fail to safeguard this
principle
by confusing law with legislation
they choose nations the sends ought to be confined to
general rules or Latino College Station
largely rentals Commons
addition to particular groups ending privileged to some
to imposing special duties will not lose
hayek second point about the rule of law was that laws should tell individuals
only what they could not
do in order to prevent harm to others
laws should not tell individuals what they must do
these rules and this is the characteristic general rules
they tell people what strategies they are not allowed to employ
India efforts to improve their own situation
but within the remained a all the open space of conceivably actions
they are free to choose whatever they consider most appropriate and more
conducive to their
interests hired did grant that government might need to guarantee a
minimum set up specific protections
in areas such as health care the environment and disaster relief
but he argued the should be privatized whenever possible
the constitutional liberty has taken its place among the great works of classical
liberal theory
certainly means scholarship I have never
before discovered that is absolutely
surpassing the and the
I deres the year especially the ideas
about the the Justice problem
about the problem of spontaneous interaction of ten thousands of people
hold them having completely different value convictions
in Howell we can find people
who are to be confined Ways and Means
to make people with completed different value conviction to live together in
more or less
term peace and freedom
is that was something worth still fascinates me
there's actually for me the quintessence of economics
in the early nineteen sixties hayek unexpectedly received an invitation to
teach in Fryeburg West Germany
Freiberg was the professional home of his old friend
and Mont Pellerin Society member water Oregon
the word died in 1950
Ludwig Erhard another month Pellerin Society member
was soon to become chancellor of west germany
after moving to pry bar higher pressed on with the development of his ideas on
spontaneous order
my 1969 he had almost completed the first volume of law
legislation and liberty this work
which you plan to publish in three volumes was to expand on the concerns he
had addressed
in the constitution of liberty into constitution
Liberty High Boston maine bhi
a tempting do he stayed for hola time
what has the gardens traditional principles the ones to explain but
nineteen central limitless middle intended to do
Rooney it's a time when I packed he finished simple
I discovered sitter named dissension liberalism had no answers to certain
questions
law legislation and liberty was eventually to be a work of sweeping
scope and substantial importance
but before the first volume was furnished hike began to suffer from a
severe depression
years have standing against the academic and political mainstream
were apparently taking their toll even after he finally finished the first
volume in 1973
IX outlook had not improved
the hike was feeling so low that he was literally unable to get up from his bed
and when he talked to Arthur Selden he'd he told me at that time he felt that his
entire
life's work had been a waste then in 1974 very unexpectedly
Hayek was awarded the Nobel Prize in Economics
ironically his call recipient was gonna Myrtle
a socialist thinker from Sweden
the Nobel Prize led to a swift reversal in high x reputation
as one writer noted he quickly went from
goofball to Guru it also seemed to spark a burst the
energy with an hayek resulting in renewed health
and a dramatically increase the intellectual outboard
who say no it wasn't Nobel Prize night
under but the Nobel Prize for tremendous shot in the arm
in 1976 higher completed volume 2
law legislation and liberty when knows if its completion was delivered to a
meeting of them on power in society
during erupted three years later in nineteen seventy-nine
the last of the three volumes was published
I thought very highly of Road to Serfdom
I knew how important it'd been historically
but to lawless station Liberty
mas revelation
I accused one volume each for what he termed
three fundamental insights on the preservation
over society a free individuals the first the Vikes 3 insights was
order without commands this was a further clarification of his concept
dubbed spontaneous order
hayek persisted in combating the misperception that
order is equivalent to a single overarching vision or plan
he argued that order occurs spontaneously in society
because all the plans have individuals are
coordinated through various mechanisms the transmit information such as market
prices
customary practices venues language and tradition
it is very exciting to Transpo whose
what one thinks of as a vast networkers operations
people exchanging money in goods suddenly to discover that this really
has a totally different aspect altogether
and I think that's a brilliant illumination hayek second inside the
address the concept though
social justice for hired the term
social justice was without any clear meaning
and could be used simply to dress up the political buyer so the user
as the standard by which to judge the economy
it was at best useless and at worst
harmful centered obscure the real nature or both
justice and social order any delivered
10 to convict's a distribution the contusion
whose principal sue them just as are ultimately
is a concern rumors and free society hired believed in what he considered
true justice which sprang from the genuine equality of individuals under
the rule of law
distributive equality was another matter
crew justices impartial and impersonal
different conditions among individuals and groups which are not the result of
interference
do not imply a lack of social justice
it's not acts which a free it's human action which
Yahoo trust and to appliance a concept of justice which is an attribute of
human action
to a state of affairs richest open to live with a report about the enabled
this just boxers
the third of high x trilogy have insights
was the democracy did not necessarily equate to Liberty
confusing democracy will liberalism was for him
tragic allusion far more important was a constitutional order that would limit
the power of government to interfere with the spontaneous order of society
to the degree that democracy holes government officials accountable for
their actions
it is an essential part have a functioning political order
by itself however democracy is not the sufficient protection for freedom
that of course is Lou those who will select religions all Kenyans
much religion purchase which
other to terms with the government islands that's a government
is hosts to satisfying
all kinds of special into small to conduct a month old
it's as close as as most majority which
a group as a poem wheels president up the majority
as satisfying article coops in the late nineteen seventies
the world was entering a new era and high x ideas were beginning to have an
influence
the simultaneous high inflation and high unemployment
would seem to be the legacy of Keynesian economics
caused many to begin looking for other answers
in England margaret thatcher was turning the British economy around
largely through reliance on high x theories to
higher code great admiration for missus thatcher
her adoption up his concepts cause some to call hi ok
her mad professor on Sat I am i once
she pulled the constitution of liberty out of her bag placed it on the table
and said this is our program and then extraordinary changes happened in
England
in the nineteen eighties an economic see change occurred in the United States
ronald reagan had come to office with a new approach based in part on high x
ideas
Reagan's administration would bring both inflation and unemployment under control
in 1982 hike was awarded the Order of Merit
by the Austrian government and in 1984
he became a companionable honor a personal award from the Queen of England
high x final book the fatal conceit was published in 1988
in it hike warned his readers against the temptation to assume that social
institutions and inherited practices
can simply be altered or abolished to suit the momentary objectives of
would-be reformers
in 1989 at the age of 90 Friedrich Hayek witness the dismantling of the berlin
wall
the victim old unworkable government economic planning
and increasing pressure for freedom
this was the first step on the road away from serfdom
and the ultimate affirmation of Hayek's ideas about the nature of order
in human society if you are
a good hi Aki en it should have been inevitable
that communism was going to fall because it should have been inevitable that this
terribly inefficient system was going to take some point just grind to a crashing
halt
and nowhere i is high ikaes popular us well respected
as in the East European countries because those people have seen
his sis theories his the they have it at the o2 shows the which gives an accurate
the
account on all that all the all the police states and the
all the conditions the on Underwood centrist economic planning
can be performed and they also see the great promise that the whole salt
for them President George Bush presented the US medal of freedom to hire
in 1991 I X un doctor lawrence higher
accepted Friedrich August von hayek
died in 1992 his life had essentially come full circle
group two distinct half-centuries in which is reputation had risen
then fallen and finally risen again
even more strongly
he had seen the ideas are free markets and human liberty
go from ridicule to being the centerpiece of social thought
this is high x legacy I think that we can
divide the tent this entry into four quarters
the first quarter was dominated by lyndon and Russian Revolution
the second quarter by Hitler National Socialism
under World War the third quarter I'm
was dominated by it came Shin thinking it was really look what locations
but the fourth quarter on the tent this entry was characterised
and dominated in some ways by higher I think the higher
will be perceived in retrospect as the greatest political philosopher
the 20th century hayek have a dollar from I'll manhole times
good