Hayek Quotes of the Day

These passages from The Road to Serfdom are my favourite from Hayek because of the allusion to the need to look at institutional solutions to problems and to be flexible about the relative merits of different institutions.

His metaphor of the gardener tending to his plants is great.

Another excellent metaphor of his of the role of public policy is that of a maintenance squad in a factory making sure everything was working well, although the maintenance squad really didn’t care what the factory was producing.

Karl Smith's avatarModeled Behavior

My Hayek exposure was mostly The Use of Knowledge in Society style stuff. I am just now reading The Road to Serfdom for the first time.

While his analysis of why markets work has always been wonderful, from what I can tell his political economy seems to echo that of a distinctly left-of-center economist by modern standards.

Probably nothing has done so much harm to the [libertarian] cause as the wooden insistence of some [libertarians] on certain rough rules of thumb, above all the principle of laissez-faire.

We must save capitalism from the unconstrained free-market. Is this Hayek or Robert Reich? Hayek makes repeated reference to the fact that it is only competition as a rough principle that is to be supported. Indeed, he goes on to say

The [proper] attitude of the [libertarian] towards society is like that of the gardener who tends a plant and in order to…

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Henry Simons on the fate of democratic socialism

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People say things they later regret and their friends regret they said it at all

There are plenty, now on the left and the right, who in the past, and sometimes too recent past, dabbled in ideologies that did not include an unwavering commitment to democratic government, the rule of law, and peaceful change through the ballot box.

Ex-communists: they are allowed back into polite society and into left-wing political parties often without have to admit and openly repent for being the fools that they were. Some of these ex-communists took a long time and were well past their immature youth to see the foolishness of their ways.

The forgiveness for ex-communists is odd as Hayek in the Road to Serfdom challenged the general view among British academics that fascism was a capitalist reaction against socialism, instead arguing that fascism and socialism had common roots in central economic planning and the power of the state over the individual.

The inter-war communists hated the Fascists because both competed for the working class vote and because ex-comrades such as Mussolini had worked out that co-opting nationalism with anti-big business rhetoric was a sure path into the hearts of the working class, lower-middle class, and small business and greatly increased the chances to seize power quickly and legally with wide support in times of discontent.

The economist Joan Robinson gazed on China and North Korea with “starry eyes”, as Geoffrey Harcourt put it, as well as making some utterly devastating criticisms of Marxian economics at earlier points in her long career. Robinson became more left wing as she aged, and in Economic Management in China (1975), she praised the Cultural Revolution! Her colleagues were quite embarrassed.

Noam Chomsky spoke when he should have listened on Cambodia under Pol Pot.

Orwell’s Proposed Preface to ‘Animal Farm’ is a wonderful dissection of renegade liberal that glorified communist experiments. For Orwell, these intellectuals loved the Stalin’s Soviet Union despite the purges, mocked bourgeois liberty despite their own pleasing bourgeois circumstances, and identified with communists would who have shipped them off to camps straight after the revolution. The renegade liberals excused the Moscow purges because communists were just ‘liberals in a hurry’!

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