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Western Philosophy
20th-century philosophy
Friedrich Hayek
Name
Friedrich August von Hayek
Birth 1899 May 8 (Vienna, Austria-Hungary)
Death 1992 March 23 (Freiburg, Germany)
School/tradition Old Whig, Classical liberalism and Austrian economics
Main interests Economics, social philosophy, political philosophy, philosophy of mind
Notable ideas Economic calculation problem, Catallaxy, Extended order, Dispersed knowledge, Spontaneous order
Influenced by Bernard Mandeville, David Hume, Adam Ferguson, John Locke, Edmund Burke, Alexis de Tocqueville, Lord Acton, Carl Menger, Eugen von Bohm-Bawerk, Friedrich Wieser, Ludwig von Mises, Max Weber, Karl Popper
Influenced Karl Popper, Konrad Lorenz, Robert Nozick, Israel Kirzner, Murray Rothbard, John Hicks, George Stigler, Ben Reid, Milton Friedman, Michael Novak, Barry Goldwater, Ronald Reagan, Thomas Sowell, Margaret Thatcher, Bruno Leoni, Giovanni Sartori, Dario Antiseri,Atilla Yayla, Bruce Caldwell, John Gray, Jimmy Wales, Ludwig Erhard, Ron Paul, Alan Greenspan
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Friedrich August von Hayek, CH (May 8, 1899 in Vienna – March 23, 1992 in Freiburg) was an Austrian-British economist and political philosopher known for his defence of classical liberalism and free-market capitalism against socialist and collectivist thought in the mid-20th century. Western philosophy is a term that refers to philosophical thinking in the Western or Occidental world, as distinct from Eastern or Oriental philosophies See also [[Analytic philosophy]] and [[Continental philosophy]] The 20th century brought with it upheavals that produced a series of conflicting developments within Philosophy Year 1899 ( MDCCCXCIX) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common Events 589 - Reccared summons the Third Council of Toledo 1450 - Jack Cade's Rebellion: Kentishmen Vienna ( in Wien; see also other names) is the Capital of Austria, and is also one of the nine States of Austria. Year 1992 ( MCMXCII) was a Leap year starting on Wednesday (link will display full 1992 Gregorian calendar) Events 1174 - Jocelin, Abbot of Melrose, is elected Bishop of Glasgow. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. The Whigs (with the Tories) are often described as one of two political parties in England and later the United Kingdom from the late 17th to Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world The Austrian School, also known as the “ Vienna School ” or the “ Psychological School ” is a heterodox school of economics that advocates Economics is the social science that studies the production distribution, and consumption of goods and services. Social philosophy is the philosophical study of questions about social Behavior (typically of Humans. Political philosophy is the study of questions about the City, Government, Politics, Liberty, Justice, Property, Rights Philosophy of mind is the branch of Philosophy that studies the nature of the Mind, Mental events Mental functions mental properties The economic calculation problem is a criticism of Socialist economics. Catallactics is the praxeological theory of the way the Free market system reaches Exchange ratios and Prices It aims to analyse all actions Extended order is an Economics and Sociology concept introduced by Friedrich Hayek. In Economics, dispersed knowledge is information that is dispersed throughout the marketplace and is not in the hands of any single agent See also the closely related articles Emergence and Self-organization. Bernard Mandeville, or Bernard de Mandeville (1670 &ndash 1733 was a Philosopher, political Economist and Satirist. David Hume (26 April 1711 25 August 1776 Scottish Philosopher, Economist, and Historian is an important figure in Western philosophy Adam Ferguson, also known as Ferguson of Raith (20 June 1723 ( O John Locke (29 August 1632 – 28 October 1704 was an English Philosopher. Edmund Burke ( 12 January, 1729 9 July, 1797) was an Irish statesman author orator Political theorist, and John Emerich Edward Dalberg-Acton 1st Baron Acton, KCVO ( 10 January 1834 &ndash 19 June 1902) This article is about the economist not about his son the mathematician Karl Menger. Eugen Ritter von Böhm-Bawerk ( February 12, 1851 in Brno &ndash August 27, 1914 in Vienna) was an Austrian Friedrich Freiherr von Wieser ( July 10, 1851 – July 22, 1926) was an early member of the Austrian School of economics Ludwig Heinrich Edler von Mises (ˈluːtvɪç fɔn ˈmiːzəs ( September 29, 1881 – October 10, 1973) was an Austrian Maximilian Carl Emil Weber (maks 'veːbɐ (21 April 1864 &ndash 14 June 1920 was a German political economist and sociologist who was considered Sir Karl Raimund Popper ( July 28 1902  &ndash September 17 1994) was an Austrian and British Philosopher and a professor Sir Karl Raimund Popper ( July 28 1902  &ndash September 17 1994) was an Austrian and British Philosopher and a professor Konrad Zacharias Lorenz ( November 7, 1903 in Vienna &ndash February 27, 1989 in Vienna) was an Austrian Robert Nozick ( November 16, 1938  &ndash January 23, 2002) was an American Philosopher and Pellegrino University Israel Meir Kirzner ( Yisroel Mayer Kirzner) (born February 13, 1930) is a leading economist in the Austrian School. Murray Newton Rothbard (March 2 1926 – January 7 1995 was an American economist of the Austrian School who helped define modern Libertarianism Sir John Richard Hicks ( April 8, 1904 May 20, 1989) was one of the most important and influential Economists and Religious Inclusivists George Joseph Stigler ( January 17, 1911 December 1, 1991) was a U Ben Reid (born 19 April 1989 is an Australian rules footballer currently playing for Collingwood Football Club in the AFL. Milton Friedman (July 31 1912 November 16 2006 was an American Nobel Laureate Economist and Public intellectual. Michael Novak (born September 9 1933) is an American Catholic philosopher journalist novelist and diplomat Thomas Sowell (born June 30, 1930) is an American Economist, social commentator and author of dozens of books Margaret Hilda Thatcher Baroness Thatcher LG, OM, PC, FRS (born 13 October 1925 Bruno Leoni ( April 26, 1913 – November 21, 1967) was an Italian classical-liberal political philosopher and Giovanni Sartori (born May 13, 1924) is an Italian Political scientist specializing in the study of Comparative politics. Atilla Yayla (born) is a Turkish political thinker and a proponent of Liberal democracy. Bruce Caldwell ( February 8, 1906 - February 15, 1959) is a former Outfielder and First baseman for the Cleveland Indians John N Gray (born April 17, 1948 in South Shields, County Durham, England) is a prominent British Jimmy Donal "Jimbo" Wales (born August 7 1966 is an American Internet entrepreneur known "Erhard" redirects here For the saint of this name see Saint Erhard. Alan Greenspan (born March 6 1926 in New York City) is an American Economist and was from 1987 to 2006 the Chairman of the Federal Reserve of Libertarianism is a term used by a broad spectrum of political philosophies which prioritize individual Liberty and seek to minimize or even abolish the Agorism is an anarchist Political philosophy founded by Samuel Edward Konkin III that holds the ultimate goal as bringing about a society in which Anarcho-capitalism (also known as Free-market anarchism) is an individualist anarchist Political philosophy that advocates the elimination Autarchism (from Greek, "belief in self rule" is a Political philosophy that upholds the principle of Individual liberty, rejects compulsory Christian libertarianism should not be confused with Libertarian Christianity. Geolibertarianism is a Political movement that strives to reconcile Libertarianism and Georgism (or geoism) Green libertarianism is a Political philosophy that has developed in the United States. Individualist anarchism refers to any of several traditions that hold that "individual conscience and the pursuit of self-interest should not be constrained by any collective Left-libertarianism (or left-wing libertarianism) is a term that has been adopted by several different libertarian political movements and theorists Libertarian socialism is a group of political philosophies that aim to create a society without political economic or social hierarchies – a society in which all violent Individualist feminism (sometimes also grouped with libertarian feminism or ifeminism) is a term for feminist ideas which seek to celebrate Free-market anarchism (sometimes called market anarchism) refers to an Individualist anarchist Philosophy that harmonizes the abolition of the state with Market socialism is a term used to denote two different Economic system (s based in Socialism which operate according to Market principles In Civics, minarchism, sometimes called minimal Statism, small government, or limited-government Libertarianism Mutualism, is an Anarchist school of thought, can be traced to the writings of Pierre-Joseph Proudhon that envisioned a society where each person might possess a Neolibertarianism is a political philosophy combining elements of Libertarian and Neoconservative thought that embraces Incrementalism domestically Paleolibertarianism is a school of thought within American Libertarianism founded by Lew Rockwell and Murray Rothbard, and closely associated Right-libertarianism or right libertarianism is a phrase used to either describe non- Collectivist forms of Libertarianism or a variety of different libertarian Voluntaryism is a Philosophy that opposes anything that it sees as unjustifiably invasive and Coercive. Objectivism is a Philosophy developed by Ayn Rand in the 20th century that encompasses positions on Metaphysics, Epistemology, The Austrian School, also known as the “ Vienna School ” or the “ Psychological School ” is a heterodox school of economics that advocates Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world Individualist anarchism refers to any of several traditions that hold that "individual conscience and the pursuit of self-interest should not be constrained by any collective thumb| |Broken Liberty Istanbul Archaeology Museum Civil liberties are freedoms that protect the Individual from the Government. Counter-economics is a term originally coined by Samuel Edward Konkin III, a radical Libertarian activist and theorist who defined it as " the study and/or Decriminalization is the reduction or abolition of criminal penalties in relation to certain acts but regulated permits or fines might still apply (for contrast Economic freedom is freedom to produce trade and consume any goods and services acquired without the use of force fraud or theft A free market is a Market in which property rights are voluntarily exchanged at a price arranged completely by the mutual consent of sellers and buyers Free trade is a system in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions The question of free will Freedom of contract or contractualism is the idea that individuals should be free to bargain among themselves the terms of their own contracts without government interference The homestead principle (or original appropriation) is part of libertarian and anarcho-capitalist Ethics. Humanism is a broad category of ethical philosophies that affirm the dignity and worth of all people based on the ability to determine right and wrong by appealing to universal Methodological individualism is a philosophical method aimed at explaining and understanding broad society-wide developments as the aggregation of decisions by individuals Laissez-faire ( pronunciation: French,; English,) is a French phrase literally meaning Let do (“allow to do” Liberty, the freedom to act or believe without being stopped by unnecessary force A night watchman state, or a minimal state, is a Form of government in Political philosophy where the government's responsibilities are so minimal they The non-aggression principle (also called the non-aggression axiom, anticoercion principle, or zero aggression principle) is a Deontological Nonintervention or non-interventionism is a foreign policy which holds that political rulers should avoid alliances with other nations and avoid all wars not related to direct Property is any physical or virtual entity that is owned by an individual Self-governance is an abstract concept that refers to several scales of Organization. Self-ownership (or sovereignty of the individual, individual sovereignty or individual autonomy) is the moral or natural right (aka Freedom of a person The subjective theory of value (or theory of subjective value) is an economic theory of value that holds that "to possess value an object must be both useful A tax resister resists or refuses payment of a Tax because of opposition to the institution collecting the tax or to some of that institution’s policies The libertarian movement consists of the various individuals and institutions who expound or promote the ideas and causes of Libertarianism. Libertarianism is a Political philosophy that emphasises the Liberty of the individual and seeks to minimize or even abolish the State. Many countries and subnational political entities have libertarian political parties. Libertarian theories of law build upon classical liberal and individualist anarchist doctrines Adherents of different ideologies have criticized Libertarianism for various reasons Civil libertarianism is a strain of political thought that supports Civil liberties, or who emphasizes the supremacy of Individual rights and Personal freedoms For the revolt in Brazil, see Constitutionalist Revolution. The term Constitutionalism is a word with a variety of meanings A libertarian Democrat is a person who subscribes to libertarian philosophy while typically voting for and being involved with the United States Democratic Party. A libertarian Republican (LR is a person who subscribes to libertarian philosophy while typically voting for and being involved with the United States Republican Party Libertarian transhumanism is a Political philosophy synthesizing Libertarianism and Transhumanism. The Order of the Companions of Honour is a British and Commonwealth Order. Events 589 - Reccared summons the Third Council of Toledo 1450 - Jack Cade's Rebellion: Kentishmen Year 1899 ( MDCCCXCIX) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common Vienna ( in Wien; see also other names) is the Capital of Austria, and is also one of the nine States of Austria. Events 1174 - Jocelin, Abbot of Melrose, is elected Bishop of Glasgow. Year 1992 ( MCMXCII) was a Leap year starting on Wednesday (link will display full 1992 Gregorian calendar) Austria (Österreich ( officially the Republic of Austria (Republik Österreich British people, or Britons, are the native inhabitants of Great Britain and their descendants or citizens of the United Kingdom, of the An economist is an expert in the Social science of Economics. Political philosophy is the study of questions about the City, Government, Politics, Liberty, Justice, Property, Rights Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world A free market is a Market in which property rights are voluntarily exchanged at a price arranged completely by the mutual consent of sellers and buyers Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution Collectivism is a term used to describe any moral political or social outlook that stresses human Interdependence and the importance of a Collective, rather than He is considered to be one of the most important economists and political philosophers of the twentieth century. [1] One of the most influential members of the Austrian School of economics, he also made significant contributions in the fields of jurisprudence and cognitive science. The Austrian School, also known as the “ Vienna School ” or the “ Psychological School ” is a heterodox school of economics that advocates Jurisprudence is the Theory and Philosophy of Law. Scholars of jurisprudence or legal philosophers hope to obtain a deeper understanding of the nature Cognitive science may be broadly defined as the multidisciplinary study of mind and behavior He shared the 1974 Nobel Prize in Economics with ideological rival Gunnar Myrdal "for their pioneering work in the theory of money and economic fluctuations and for their penetrating analysis of the interdependence of economic, social and institutional phenomena. The Nobel Memorial Prize in Economic Sciences, officially named The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (Sveriges riksbanks pris i ekonomisk Karl Gunnar Myrdal (6 December 1898 – 17 May 1987 was a Swedish economist politician and Nobel laureate Monetary policy is the process by which the Government, Central bank, or monetary authority of a country controls (i the Supply of Money, The term business cycle or economic cycle refers to the fluctuations of economic activity during its long term growth trend "[2] He also received the U.S. Presidential Medal of Freedom in 1991. The United States of America —commonly referred to as the The Presidential Medal of Freedom is a decoration bestowed by the President of the United States and is along with the equivalent Congressional Gold Medal bestowed [3] He is considered to be one of the major forces of change from the dominant interventionist and Keynesian policies of the first part of the 20th century to the more market friendly, less state controlled and neoliberal policies after the 1980s. Originally coined by its critics and opponents " neoliberalism " is a label referring to the recent reemergence of Economic liberalism or Classical liberalism

Contents

Early Life

Hayek was born in Vienna, Austro-Hungarian Empire, as part of an aristocratic family of prominent intellectuals working in the fields of statistics and biology. Vienna ( in Wien; see also other names) is the Capital of Austria, and is also one of the nine States of Austria. See also Nobility Historically the Austrian nobility (österreichischer His father published a major botanical treatise while working as a doctor in the government's social welfare system. On his mother's side, he was second cousin to the philosopher Ludwig Wittgenstein. When World War I began in 1914, Hayek lied about his age and joined the Austro-Hungarian Army. World War I (abbreviated WWI; also known as the First World War, the Great War, and the War to End All The Austro-Hungarian Army was the ground force of the Austro-Hungarian Dual Monarchy (1867 - 1918 He survived the war without serious injury and was decorated for bravery. After being discharged he decided to pursue an academic career.

Economist

At the University of Vienna, he earned doctorates in law and political science in 1921 and 1923 respectively, and he also studied psychology and economics with a keen interest. The University of Vienna (Universität Wien is a Public university located in Vienna, Austria. A doctorate is an Academic degree that indicates the highest level of academic achievement Psychology (from Greek grc ψῡχή psȳkhē, "breath life soul" and grc -λογία -logia) is an Academic and Initially sympathetic to socialism, Hayek's economic thinking was transformed during his student years in Vienna through attending Ludwig von Mises' private seminars along with Fritz Machlup and other young students. Ludwig Heinrich Edler von Mises (ˈluːtvɪç fɔn ˈmiːzəs ( September 29, 1881 – October 10, 1973) was an Austrian Fritz Machlup ( December 15, 1902 &ndash January 30, 1983) was an Austrian American Economist. He was a student of Friedrich von Wieser. Friedrich Freiherr von Wieser ( July 10, 1851 – July 22, 1926) was an early member of the Austrian School of economics

Hayek worked as a research assistant to Prof. Jeremiah Jenks of New York University from 1923 to 1924. Jeremiah Whipple Jenks PhD LLD (1856&mdash1929 was an American Economist and educator born at Saint Clair Michigan. New York University ( NYU) is a private, Nonsectarian, Coeducational Research University in New York City. He then worked for the Austrian government helping to work out the legal and economic details of the international treaty ending World War I. World War I (abbreviated WWI; also known as the First World War, the Great War, and the War to End All Hayek then set up and became director of the Austrian Institute for Business Cycle Research before joining the faculty of the London School of Economics at the behest of Lionel Robbins in 1931. The London School of Economics and Political Science, more commonly referred to as The London School of Economics or LSE, is a specialist college of the Lionel Charles Robbins Baron Robbins (1898 - 2008 was a British economist and adherent to the Austrian School of Economics. In the 1930s Hayek enjoyed a considerable reputation as a leading economic theorist, but his models were not received well by the followers of John Maynard Keynes and debate between the two schools of thought continues to this day. John Maynard Keynes 1st Baron Keynes CB (ˈkeɪnz "cains" (5 June 1883 &ndash 21 April 1946 was a British Economist whose ideas

Refugee

Unwilling to return to Austria after the Anschluss to Nazi Germany, Hayek became a British citizen in 1938, a status he held for the remainder of his life. The ( German: "link-up" also known as the, was the 1938 Annexation of Austria into Greater Germany by the Nazi

The Road to Serfdom

It was during this time that The Road to Serfdom was written. The Road to Serfdom is a book written by Friedrich Hayek (recipient of the Nobel Memorial Prize in Economic Sciences in 1974 which has significantly The Road to Serfdom is a book written by Friedrich Hayek (recipient of the Nobel Memorial Prize in Economic Sciences in 1974 which has significantly Hayek was concerned about the general view in Britain that Fascism was a capitalist reaction against socialism, and the book was to be the popular edition of the second volume of a treatise entitled "The Abuse and Decline of Reason". Fascism is a totalitarian nationalist and corporatist ideology [4] It was written between 1940-1943 and the title came from the French liberal thinker Alexis de Tocqueville's writings on the "road to servitude". [5] It was first published in Britain by Routledge in March 1944 and was quite popular, leading Hayek to call it "that unobtainable book," also due in part to wartime paper rationing. Routledge is a publisher of non-fiction academic books and journals [6] The book was favorably reviewed by George Orwell among others. Eric Arthur Blair (25 June 1903 – 21 January 1950 who used the Pseudonym George Orwell, was an English writer When it was published in the United States by the University of Chicago in September of that year, it was far more popular than it had been in Britain, though it was not better received by critics. The University of Chicago is a Private university located principally in the Hyde Park neighborhood of Chicago. The American magazine Reader's Digest also published an abridged version in April 1945, enabling The Road to Serfdom to reach a far wider audience than academics. Reader's Digest is a monthly general-interest family Magazine co-founded in 1922 by Lila Bell Wallace and DeWitt Wallace.

In 1950, Hayek left the London School of Economics for the University of Chicago, becoming a professor in the Committee on Social Thought. The London School of Economics and Political Science, more commonly referred to as The London School of Economics or LSE, is a specialist college of the The Committee on Social Thought, one of several PhD -granting committees at the University of Chicago, was started in 1941 by historian John U (Hayek's position was unpaid and he was barred from entering the Economics department because of his Austrian economic views by one member whom he would not name and many speculate was Frank Knight. Frank Hyneman Knight ( November 7, 1885 - April 15, 1972) was an important Economist of the twentieth century For his livelihood he depended on donations from private philanthropists. ) At Chicago, he found himself among other prominent economists, such as Milton Friedman, but, by this time, Hayek had turned his interests towards political philosophy and psychology — although he continued to work on economic issues, and most of his economic notes from this period have yet to be published. An economist is an expert in the Social science of Economics. Milton Friedman (July 31 1912 November 16 2006 was an American Nobel Laureate Economist and Public intellectual. Political philosophy is the study of questions about the City, Government, Politics, Liberty, Justice, Property, Rights Psychology (from Greek grc ψῡχή psȳkhē, "breath life soul" and grc -λογία -logia) is an Academic and

Other Writings

In the aftermath of editing a book on John Stuart Mill's letters and a series of lectures he gave in Cairo in 1955, he intended to write two books on the liberal order, the first volume of this was to be The Constitution of Liberty. John Stuart Mill (20 May 1806 &ndash 8 May 1873 British Philosopher, political economist, civil servant and Member of Parliament, was an influential The Constitution of Liberty is one of the most important books by Austrian economist and Nobel Prize recipient Friedrich A [7] He worked on The Constitution of Liberty for the next four years, completing it in May 1959. It was published in February 1960. Among others, Hayek sent copies of this work to former U. S. President Herbert Hoover and the then Vice President, Richard Nixon, who sympathized with the book's basic arguments. Herbert Clark Hoover (August 10 1874 &ndash October 20 1964 was the thirty-first President of the United States (1929–1933 [8] However Hayek was disappointed by the book's general reception, since it was not as popular as The Road to Serfdom had been fifteen years before.

From 1962, until his retirement in 1968, he was a professor at the University of Freiburg. It was here that most of Law, Legislation and Liberty was written. Law Legislation and Liberty is the 1973 magnum opus in three volumes by Nobel laureate economist and political philosopher Friedrich Hayek. This was not intended for a general audience, and it was published in three volumes in 1973, 1976 and 1979.

Later Life

In 1974, he shared the Nobel Memorial Prize in Economics, causing a revival of interest in the Austrian school of economics. The Nobel Memorial Prize in Economic Sciences, officially named The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (Sveriges riksbanks pris i ekonomisk The Austrian School, also known as the “ Vienna School ” or the “ Psychological School ” is a heterodox school of economics that advocates In 1984, he was appointed as a member of the Order of the Companions of Honour by Queen Elizabeth II of the United Kingdom on the advice of British Prime Minister Margaret Thatcher for his "services to the study of economics. The Order of the Companions of Honour is a British and Commonwealth Order. For the ship see RMS Queen Elizabeth 2 Elizabeth II (Elizabeth Alexandra Mary Context States headed by Elizabeth II The Prime Minister of the United Kingdom of Great Britain and Northern Ireland is the political leader of the United Kingdom Margaret Hilda Thatcher Baroness Thatcher LG, OM, PC, FRS (born 13 October 1925 " Later, he was a visiting professor at the University of Salzburg. The University of Salzburg, or Paris Lodron University ( German Universität Salzburg) after its founder the Prince Archbishop Paris Lodron is located In 1991 George H. W. Bush awarded Hayek with the Presidential Medal of Freedom, one of the two highest civilian awards in the United States, for a "lifetime of looking beyond the horizon". George Herbert Walker Bush (born June 12 1924 served as the forty-first President of the United States from 1989 to 1993 The Presidential Medal of Freedom is a decoration bestowed by the President of the United States and is along with the equivalent Congressional Gold Medal bestowed Hayek died in 1992 in Freiburg, Germany.

Work

The economic calculation problem

Hayek was one of the leading academic critics of collectivism in the 20th century. Collectivism is a term used to describe any moral political or social outlook that stresses human Interdependence and the importance of a Collective, rather than Hayek believed that all forms of collectivism (even those theoretically based on voluntary cooperation) could only be maintained by a central authority of some kind. In his popular book, The Road to Serfdom (1944) and in subsequent works, Hayek claimed that socialism required central economic planning and that such planning in turn had a risk of leading towards totalitarianism, because the central authority would have to be endowed with powers that would have an impact on social life as well, and because the scope of knowledge required for central planning is inherently decentralized. The Road to Serfdom is a book written by Friedrich Hayek (recipient of the Nobel Memorial Prize in Economic Sciences in 1974 which has significantly Totalitarianism (or totalitarian rule) is a concept used to describe Political systems where a State regulates nearly every aspect of public and private

Building on the earlier work of Mises and others, Hayek also argued that, in centrally-planned economies, an individual or a select group of individuals must determine the distribution of resources, but that these planners will never have enough information to carry out this allocation reliably. The efficient exchange and use of resources, Hayek claimed, can be maintained only through the price mechanism in free markets (see economic calculation problem). Price in Economics and Business is the result of an exchange and from that trade we assign a numerical Monetary value to a good, The economic calculation problem is a criticism of Socialist economics. In The Use of Knowledge in Society (1945), Hayek argued that the price mechanism serves to share and synchronize local and personal knowledge, allowing society's members to achieve diverse, complicated ends through a principle of spontaneous self-organization. The Use of Knowledge in Society is a scholarly article written by renowned Austrian-school economist Friedrich Hayek, first published in the September Self-organization is a process of Attraction and repulsion in which the internal organization of a System, normally an open system, increases He used the term catallaxy to describe a "self-organizing system of voluntary co-operation. Catallactics is the praxeological theory of the way the Free market system reaches Exchange ratios and Prices It aims to analyse all actions "

In Hayek's view, the central role of the state should be to maintain the rule of law, with as little arbitrary intervention as possible. The rule of law, in its most basic form is the principle that no one is above the law

Spontaneous order

Hayek viewed the free price system, not as a conscious invention (that which is intentionally designed by man), but as spontaneous order, or what is referred to as "that which is the result of human action but not of human design". A free price system or free price mechanism (informally called the price system or the price mechanism) is an economic system where prices are set by the Thus, Hayek put the price mechanism on the same level as, for example, language. Such thinking led him to speculate on how the human brain could accommodate this evolved behavior. In The Sensory Order (1952), he proposed, independently of Donald Hebb, the connectionist hypothesis that forms the basis of the technology of neural networks and of much of modern neurophysiology¹. Donald Olding Hebb ( July 22, 1904 &ndash August 20, 1985) was a Canadian Psychologist who was influential in the area of Neuropsychology Connectionism is an approach in the fields of Artificial intelligence, Cognitive psychology / Cognitive science, Neuroscience and Philosophy Traditionally the term neural network had been used to refer to a network or circuit of biological neurons. Neurophysiology (from Greek grc νεῦρον neuron, "nerve" grc φύσις physis, "nature origin" and grc -λογία

Hayek attributed the birth of civilization to private property in his book The Fatal Conceit (1988). Property is any physical or virtual entity that is owned by an individual According to him, price signals are the only possible way to let each economic decision maker communicate tacit knowledge or dispersed knowledge to each other, in order to solve the economic calculation problem. A price signal is message sent to consumers and producers in the form of a price charged for a Commodity; this is seen as indicating a signal for producers to increase supplies The concept of tacit knowing comes from scientist and philosopher Michael Polanyi. In Economics, dispersed knowledge is information that is dispersed throughout the marketplace and is not in the hands of any single agent The economic calculation problem is a criticism of Socialist economics.

The business cycle

Capital, money, and the business cycle are prominent topics in Hayek's early contributions to economics. In Economics, capital or capital Goods or real capital refers to items of extensive value The term business cycle or economic cycle refers to the fluctuations of economic activity during its long term growth trend Mises had earlier explained monetary and banking theory in his Theory of Money and Credit (1912), applying the marginal utility principle to the value of money and then proposing a new theory of industrial fluctuations based on the concepts of the British Currency School and the ideas of the Swedish economist Knut Wicksell. Ludwig Heinrich Edler von Mises (ˈluːtvɪç fɔn ˈmiːzəs ( September 29, 1881 – October 10, 1973) was an Austrian The Theory of Money and Credit is an economics book written by Ludwig von Mises, originally published in German as Theorie des Geldes und der Umlaufsmittel In Economics, the marginal utility of a good or of a service is the Utility of the specific use to which an agent would put a given increase The British Currency School was a group of British economists active in the 1840s and 1850s who argued that the excessive issuing of Banknotes was a major cause of Price Johan Gustaf Knut Wicksell ( December 20, 1851 in Stockholm &ndash May 3, 1926 in Stocksund) was a Swedish Hayek used this body of work as a starting point for his own interpretation of the business cycle, which defended what later became known as the "Austrian Theory of the Business Cycle". The Austrian business cycle theory is the Austrian School 's explanation of the phenomenon of Business cycles (or " Credit cycles quot In his Prices and Production (1931) and The Pure Theory of Capital (1941), he explained the origin of the business cycle in terms of central bank credit expansion and its transmission over time in terms of capital misallocation caused by artificially low interest rates. A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states Interest is a fee paid on borrowed capital Assets lent include Money, Shares, Consumer goods through Hire purchase, major assets

This business cycle theory was criticised when published by Keynes, Sraffa and then Kaldor[9]. John Maynard Keynes 1st Baron Keynes CB (ˈkeɪnz "cains" (5 June 1883 &ndash 21 April 1946 was a British Economist whose ideas Piero Sraffa (1898-1983 was an influential Italian Economist whose book Production of Commodities by Means of Commodities is taken as founding the Nicholas Kaldor Baron Kaldor ( Budapest, 12 May 1908 - Papworth Everard, Cambridgeshire, 30 September 1986) was one of the foremost Since then, the "Austrian business cycle theory" has been criticized by advocates of rational expectations and other components of neoclassical economics, who point to the neutrality of money and to the real business cycle theory as providing a sounder understanding of the phenomenon. Rational expectations is an assumption used in many contemporary macroeconomic models, and also in other areas of contemporary Economics and Game theory Neoclassical economics is a term variously used for approaches to Economics focusing on the determination of prices outputs and income distributions in markets In Economics, neutrality of money is the idea that a change in the stock of Money affects only nominal variables in the economy such as Prices Real Business Cycle Theory (or RBC Theory is a class of Macroeconomic models in which Business cycle fluctuations to a large extent can be accounted for Hayek, in his 1939 book Profits, Interest and Investment, distanced himself from a position held by other theorists of the Austrian School, such as Mises and later Rothbard, in beginning to shun the wholly monetary theory of the business cycle in favor of an understanding based more on profits than on interest rates. The Austrian School, also known as the “ Vienna School ” or the “ Psychological School ” is a heterodox school of economics that advocates Murray Newton Rothbard (March 2 1926 – January 7 1995 was an American economist of the Austrian School who helped define modern Libertarianism Hayek explicitly notes that most of the more accurate explanations of the business cycle place more emphasis on real instead of nominal variables. He also notes that this model of the business cycle cannot be wholly reconciled with any specific "Austrian" theory.

Social and political philosophy

In the latter half of his career Hayek made a number of contributions to social and political philosophy, which he based on his views on the limits of human knowledge[10], and the idea of spontaneous order in social institutions. Social philosophy is the philosophical study of questions about social Behavior (typically of Humans. Political philosophy is the study of questions about the City, Government, Politics, Liberty, Justice, Property, Rights He argues in favor of a society organized around a market order, in which the apparatus of state is employed almost, though not entirely, exclusively to enforce the legal order (comprised of abstract rules, and not particular commands) necessary for a market of free individuals to function. These ideas were informed by a moral philosophy derived from epistemological concerns regarding the inherent limits of human knowledge. Epistemology (from Greek επιστήμη - episteme, "knowledge" + λόγος, " Logos " or theory of knowledge

In his philosophy of science, which has much in common with that of his good friend Karl Popper, Hayek was highly critical of what he termed scientism: a false understanding of the methods of science that has been mistakenly forced upon the social sciences, but that is contrary to the practices of genuine science. Philosophy of science is the study of assumptions foundations and implications of Science. Sir Karl Raimund Popper ( July 28 1902  &ndash September 17 1994) was an Austrian and British Philosopher and a professor The term scientism can be used as a neutral term to describe the view that Natural science has authority over all other interpretations of life such as philosophical Usually scientism involves combining the philosophers' ancient demand for demonstrative justification with the associationists' false view that all scientific explanations are simple two-variable linear relationships. Hayek points out that much of science involves the explanation of complex multi-variable and non-linear phenomena, and that the social science of economics and undesigned order compares favorably with such complex sciences as Darwinian biology. These ideas were developed in The Counter-Revolution of Science: Studies in the Abuse of Reason, 1952 and in some of Hayek's later essays in the philosophy of science such as "Degrees of Explanation" and "The Theory of Complex Phenomena".

In The Sensory Order: An Inquiry into the Foundations of Theoretical Psychology (1952), Hayek independently developed a "Hebbian learning" model of learning and memory — an idea which he first conceived in 1920, prior to his study of economics. Hebbian theory describes a basic mechanism for Synaptic plasticity wherein an increase in synaptic efficacy arises from the Presynaptic cell's repeated Hayek's expansion of the "Hebbian synapse" construction into a global brain theory has received continued attention in neuroscience, cognitive science, computer science, behavioral science, and evolutionary psychology. Cognitive science may be broadly defined as the multidisciplinary study of mind and behavior Evolutionary psychology ( EP) attempts to explain mental and psychological traits such as Memory, Perception,

Hayek and conservatism

Hayek attracted new attention in the 1980s and 1990s with the rise of conservative governments in the United States and the United Kingdom. The United States of America —commonly referred to as the The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located Margaret Thatcher, the Conservative British prime minister from 1979 to 1990, was an outspoken dévotée of Hayek's writings. Margaret Hilda Thatcher Baroness Thatcher LG, OM, PC, FRS (born 13 October 1925 Shortly after Thatcher became Leader of the party, she “reached into her briefcase and took out a book. It was Friedrich von Hayek's The Constitution of Liberty. The Constitution of Liberty is one of the most important books by Austrian economist and Nobel Prize recipient Friedrich A Interrupting [the speaker], she held the book up for all of us to see. ‘This’, she said sternly, ‘is what we believe’, and banged Hayek down on the table. ”[11] After winning the 1979 election, Thatcher appointed Keith Joseph, the director of the Hayekian Centre for Policy Studies, as her secretary of state for industry in an effort to redirect parliament’s economic strategies. Keith Sinjohn Joseph Baron Joseph, CH, PC ( 17 January 1918 &ndash 10 December 1994) was a British Barrister Likewise, some of Ronald Reagan’s economic advisers were friends of Hayek. [12]

Hayek wrote an essay titled Why I Am Not a Conservative[13] (included as an appendix to The Constitution of Liberty), in which he disparaged conservatism for its inability to adapt to changing human realities or to offer a positive political program. Conservatism is a term used to describe political philosophies that favour Tradition, where tradition refers to various religious cultural or nationally defined His criticism was aimed primarily at European-style conservatism, which has often opposed capitalism as a threat to social stability and traditional values. Hayek identified himself as a classical liberal, but noted that in the United States it had become almost impossible to use "liberal" in its original definition, and the term "libertarian" has been used instead. Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world Libertarianism is a term used by a broad spectrum of political philosophies which prioritize individual Liberty and seek to minimize or even abolish the However, for his part Hayek found this term "singularly unattractive" and offered the term “Old Whig” (a phrase borrowed from Edmund Burke) instead. The Whigs (with the Tories) are often described as one of two political parties in England and later the United Kingdom from the late 17th to Edmund Burke ( 12 January, 1729 9 July, 1797) was an Irish statesman author orator Political theorist, and In his later life he said: "I am becoming a Burkean Whig". [14]

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By 1947, Hayek was an organizer of the Mont Pelerin Society, a group of classical liberals who sought to oppose what they saw as socialism in various areas. Liberalism is a broad array of related ideas and theories of Government that consider individual Liberty to be the most important political goal Politics Politics is the process by which groups of people make decisions Liberalism is a broad array of related ideas and theories of Government that consider individual Liberty to be the most important political goal This is a partial list of individual contributions to liberal political theory on a worldwide scale Modern liberalism in the United States, also referred to as American liberalism, is a political ideology that seeks to use the power of the state to effect change upon society Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world Conservative liberalism is a variant of Liberalism, combining liberal values and policies with conservative stances or more simply representing the right-wing National liberalism is a variant of liberalism combining Nationalism with some liberal policies especially regarding Economic liberalism Economic liberalism is the Economic component of Classical liberalism. Libertarianism is a term used by a broad spectrum of political philosophies which prioritize individual Liberty and seek to minimize or even abolish the Originally coined by its critics and opponents " neoliberalism " is a label referring to the recent reemergence of Economic liberalism or Classical liberalism Ordoliberalism (also called German neoliberalism) is a school of Liberalism emphasizing the need for the state to ensure that the Free market produces results Paleoliberalism is a term that has at least a few distinct meanings all relating to Liberalism. Social liberalism, also called new liberalism (as it was originally termed high liberalism radical liberalism, modern liberalism, or Cultural liberalism is a liberal view of society that stresses the freedom of individuals from cultural norms Political freedom is the absence of interference with the sovereignty of an individual by the use of coercion or aggression Individual rights refer to the Rights of Individuals in contrast with Group rights. Laissez-faire ( pronunciation: French,; English,) is a French phrase literally meaning Let do (“allow to do” The term "liberal" in "liberal democracy" does not imply that the government of such a democracy must follow the political ideology of Liberal neutrality is the idea that the liberal state should not promote any particular 'conception of the good' The concept of negative liberty refers to freedom from interference by other people ||-||} Positive liberty refers to the opportunity and ability to act to fulfill one's own potential as opposed to Negative liberty, which refers to freedom from Liberty, the freedom to act or believe without being stopped by unnecessary force A free market is a Market in which property rights are voluntarily exchanged at a price arranged completely by the mutual consent of sellers and buyers Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where A mixed economy is an Economic system that incorporates aspects of more than one economic system The open society is a concept originally developed by philosopher Henri Bergson. Popular sovereignty or the sovereignty of the people is the belief that the legitimacy of the State is created by the will or consent of its people, who A right is a legal or moral Entitlement or Permission. Rights are of vital importance in theories of Justice and deontological ethics John Locke (29 August 1632 – 28 October 1704 was an English Philosopher. John Stuart Mill (20 May 1806 &ndash 8 May 1873 British Philosopher, political economist, civil servant and Member of Parliament, was an influential Friedrich August von Hayek CH ( May 8, 1899 March 23, 1992) was an Austrian British Economist Milton Friedman (July 31 1912 November 16 2006 was an American Nobel Laureate Economist and Public intellectual. Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world John Rawls ( February 21, 1921  &ndash November 24, 2002) was an American Philosopher, a Professor of This article gives information on liberalism in diverse countries around the world A general overview and comprehensive discussion of this topic may be found in the article Liberalism. Liberalism in the United States is a broad political and philosophical mindset favoring individual Liberty, and opposing restrictions on liberty whether they come from Liberal International is a Political international for liberal parties. The International Federation of Liberal Youth ( IFLRY) is an international liberal youth organization The European Liberal Democrat and Reform Party (founded in 1993 is a liberal party, mainly active in the European Union, composed of 55 national parties from across The Alliance of Liberals and Democrats for Europe ( French: Alliance des Démocrates et des Libéraux pour l'Europe) is an alliance between two European political parties European Liberal Youth (LYMEC - Liberal and Radical Youth Movement of the European Community is an international organisation of Liberal youth movements - mostly the youth The Council of Asian Liberals and Democrats is a regional organization of liberal and democratic political parties in Asia The Africa Liberal Network (ALN is an organization composed of 16 political parties from 14 African nations and is an associated organisation of Liberal The Liberal Network for Latin America ( Red Liberal de América Latina RELIAL) is an international network founded in 2003 with the official launch taking place in Costa Rica The Mont Pelerin Society is an international organization composed of economists, intellectuals business leaders and others who favour Classical liberalism; the He was also instrumental in the founding of the Institute of Economic Affairs, the free-market think tank that inspired Thatcherism. The Institute of Economic Affairs ( IEA) styles itself the UK's pre-eminent Free-market Think-tank, founded in 1955 Thatcherism is the system of political thought attributed to the governments of Margaret Thatcher, British Prime Minister from 1979 to 1990 In his speech at the 1974 Nobel Prize banquet, Hayek, whose work emphasized the fallibility of individual knowledge about economic and social arrangements, expressed his misgivings about promoting the perception of economics as a strict science on par with physics, chemistry, or medicine (the academic disciplines recognized by the original Nobel Prizes).

While there is some dispute as to the matter of influence, Hayek had a long standing and close friendship with philosopher of science Karl Popper, also from Vienna. Sir Karl Raimund Popper ( July 28 1902  &ndash September 17 1994) was an Austrian and British Philosopher and a professor In a letter to Hayek in 1944, Popper stated, "I think I have learnt more from you than from any other living thinker, except perhaps Alfred Tarski. Alfred Tarski ( January 14, 1901, Warsaw, Russian ruled Poland – October 26, 1983, Berkeley California " (See Hacohen, 2000). Popper dedicated his Conjectures and Refutations to Hayek. For his part, Hayek dedicated a collection of papers, Studies in Philosophy, Politics, and Economics, to Popper, and in 1982 said, ". . . ever since his Logik der Forschung first came out in 1934, I have been a complete adherent to his general theory of methodology. " (See Weimer and Palermo, 1982). Popper also participated in the inaugural meeting of the Mont Pelerin Society. Their friendship and mutual admiration, however, do not change the fact that there are important differences between their ideas (See Birner, 2001).

Having heavily influenced Margaret Thatcher's economic approach, and some of Ronald Reagan's economic advisors, in the 1990s Hayek became one of the most-respected economists in Eastern Europe.

Hayek's greatest intellectual debt was to Carl Menger, who pioneered an approach to social explanation similar to that developed in Britain by Bernard Mandeville and the Scottish moral philosophers. He had a wide-reaching influence on contemporary economics, politics, philosophy, sociology, psychology and anthropology. For example, Hayek's discussion in The Road to Serfdom (1944) about truth, falsehood and the use of language influenced some later opponents of postmodernism (e. The Road to Serfdom is a book written by Friedrich Hayek (recipient of the Nobel Memorial Prize in Economic Sciences in 1974 which has significantly Postmodernism literally means 'after the modernist movement' While " Modern " itself refers to something "related to the present" the movement of modernism g. , Wolin 2004).

Even after his death, Hayek's intellectual presence was noticeable, especially in the universities where he had taught: the London School of Economics, the University of Chicago, and the University of Freiburg. A number of tributes resulted, many posthumous. A student-run group at the LSE Hayek Society, was established in his honor. The LSE ( London School of Economics) Hayek Society supports Classical liberalism, Free market economics and Free trade. At Oxford University, there is also a Hayek Society. The University of Oxford (informally "Oxford University" or simply "Oxford" located in the city of Oxford, Oxfordshire, England is the The Cato Institute named its lower level auditorium after Hayek, who had been a Distinguished Senior Fellow at Cato during his later years. The Cato Institute is a Libertarian Think tank headquartered in Washington D Also, the auditorium of the school of economics in Universidad Francisco Marroquín in Guatemala is named after him. Universidad Francisco Marroquín ("Francisco Marroquín University" is a private secular university in Guatemala City, Guatemala that was founded in 1971 Guatemala (República de Guatemala) is a country in Central America bordered by Mexico to the north and west the Pacific Ocean to the southwest

Hayek was cited many times in the recent BBC TV series The Trap. The Trap What Happened to Our Dream of Freedom is a BBC Documentary series by English filmmaker Adam Curtis, well known for

Criticism of Hayek

Richard Posner has criticized Hayek's legal theory. Richard Allen Posner (born January 11 1939 in New York City) is currently a judge on the United States Court of Appeals for the Seventh Circuit in Chicago Posner defended cost-benefit judicial decision-making that has no place in Hayek's theory.

In his 1944 book review, George Orwell called The Road to Serfdom "an eloquent defence of laissez-faire capitalism" and praised Hayek's criticism of contemporary left-wing and conservative thought. Eric Arthur Blair (25 June 1903 – 21 January 1950 who used the Pseudonym George Orwell, was an English writer [15]

He then expressed the following opinion of Hayek's solutions: "But he does not see, or will not admit, that a return to 'free' competition means for the great mass of people a tyranny probably worse, because more irresponsible, than that of the State. The trouble with competitions is that somebody wins them. Professor Hayek denies that free capitalism necessarily leads to monopoly. "

The problem in summary was: "Capitalism leads to dole queues, the scramble for markets, and war. "

Selected bibliography

See also: List of books by Friedrich Hayek

1) Rules and Order, 1973
2) The Mirage of Social Justice, 1976
3) The Political Order of a Free People, 1979

Notes

  1. ^ Edward Feser (edt), The Cambridge Companion to Hayek, Cambridge University Press (2007), ISBN 0521849772, p. 13
  2. ^ Bank of Sweden (1974). The Nobel Memorial Prize in Economic Sciences, officially named The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (Sveriges riksbanks pris i ekonomisk The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1974.
  3. ^ George H. W. Bush (1991-11-18). George Herbert Walker Bush (born June 12 1924 served as the forty-first President of the United States from 1989 to 1993 Year 1991 ( MCMXCI) was a Common year starting on Tuesday (link will display full calendar of the Gregorian Calendar. Events 326 - The old St Peter's Basilica is consecrated 1302 - Pope Boniface VIII issues the Papal bull Remarks on Presenting the Presidential Medal of Freedom Awards.
  4. ^ Alan Ebenstein, Friedrich Hayek. A Biography (New York: Palgrave, 2001), p. 107.
  5. ^ Ibid. , p. 116.
  6. ^ Ibid. , p. 128.
  7. ^ Ibid. , p. 195.
  8. ^ Ibid. , p. 203.
  9. ^ http://www.economyprofessor.com/theorists/friedrichhayek.php
  10. ^ The Use of Knowledge in Society
  11. ^ John Ranelagh, Thatcher's People: An Insider's Account of the Politics, the Power, and the Personalities (HarperCollins, 1991), p. ix.
  12. ^ Muller, Jerry Z. The Mind and the Market. Anchor Books, New York. 2003.
  13. ^ Why I Am Not a Conservative
  14. ^ E. H. H. Green, Ideologies of Conservatism. Conservative Political Ideas in the Twentieth Century (Oxford: Oxford University Press, 2004), p. 259.
  15. ^ Orwell, George "The Road to Serfdom by F. A. Hayek, The Mirror of the Past by K. Zilliacus", London, 1944
  16. ^ Liberty - The Fatal Deceit

Bibliography

See also

External links

Persondata
NAME Hayek, Friedrich August von
ALTERNATIVE NAMES
SHORT DESCRIPTION Austrian, later British, economist and political philosopher; Nobel Memorial Prize winner; professor; Austrian school member; supported free markets and liberal democracy; anti-Marxist
DATE OF BIRTH May 8, 1899(1899-05-08)
PLACE OF BIRTH Vienna, Austria-Hungary (now Austria)
DATE OF DEATH March 23, 1992
PLACE OF DEATH Freiburg, Baden-Württemberg, Germany

Israel Meir Kirzner ( Yisroel Mayer Kirzner) (born February 13, 1930) is a leading economist in the Austrian School. Events 589 - Reccared summons the Third Council of Toledo 1450 - Jack Cade's Rebellion: Kentishmen Year 1899 ( MDCCCXCIX) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common Vienna ( in Wien; see also other names) is the Capital of Austria, and is also one of the nine States of Austria. Austria (Österreich ( officially the Republic of Austria (Republik Österreich Events 1174 - Jocelin, Abbot of Melrose, is elected Bishop of Glasgow. Year 1992 ( MCMXCII) was a Leap year starting on Wednesday (link will display full 1992 Gregorian calendar) Baden-Württemberg is one of the 16 states ( Bundesländer) of the Federal Republic of Germany. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe.
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