A bit too advanced for many, I will give a brief summary (synopsis) of each chapter.
Hayek examines how Germany devolved from believing in the liberty Mills wrote about in On Liberty to the sick fascist state of 1944. In so doing, he uncovers some disappointing truths that apply to politics and governments. That these horrors must have some connection to being human is a weight that presses uncomfortably on the modern soul.
This will let you reference a Nobel Prize winner who may have the same opinions as yourself. Coming of age before the Thatcher era, Hayek was influential in rolling back the socialist excesses of the British. Let's hope we can vote out the socialism that led Germany to its perversion. Or is it too late?
1 The Abandoned Road
Free enterprise did not fail, it wasn't tried. In attempts at a greater good, man has worsened his condition; Germany, Russia, Italy, and now England are examples.
This quote, "The attitude of the liberal (read that libertarian today) toward society is like that of a gardener who tends a plant and, in order to create the conditions most favorable to its growth, must know as much as possible about its structure and the way it functions." helps lead me to believe libertarians believe in all government minus failed government.
Hayek points out that for 200 years the freedom of England was spread around the world. Then 1870 to 1944 socialism spread from the East and it was perfected in England. British and American capitalism and freedom became uncool.
2 The Great Utopia
The attempt at making life heavenly through government has created hell instead.
Socialism was to be the equal distribution of wealth but it becomes Stalinism and some consider it worse than fascism. Hayek refutes that communism and fascism are opposites. They are brothers. Brothers of tyranny.
3 Individualism and Collectivism
The good intentions of socialist planning lead to tyrannical governance. Planning becomes central as opposed to laissez faire. This can also be contrasted with the libertarian little platoons where the individual is more important than the collective.
"Atomistic" competition with private property is contrasted with central direction and controlled monopolies. The idea of a middle ground (third way) is just a dream. (Havel wrote on this.)
Hayek quote - "Although competition can bear some admixture of regulation, it cannot be combined with planning to any extent we like without ceasing to operate as an effective guide to production. ...Or, to express it differently, planning and competition can be combined only by planning for competition but not by planning against competition."
The argument of this book is to remember it is against "the planning against competition - the planning which is to be substituted for competition." Today we see a real problem with oil. The monopoly plays with regulations and prices. (Perhaps prices are historically low, but compare it with cars or computers.)
4 The "Inevitability" of Planning
An interesting observation here is that Hayek does not believe in "economy of scale." Nor does he believe that economies of size necessitate a monopoly. What looks to be economy of scale is just an agreement for monopoly as opposed to competition. Screw the planning as it will fail and go with competition for the best results of low price, quality, and availability.
5 Planning and Democracy
The state cannot plan well for the individual. Common goals are not often the same ultimate goals. This is especially true of economic concerns. Socialism is only considered during economic chaos like the hyperinflation of Germany before Hitler.
Liberty is the ultimate end and the means of democracy should be used to achieve liberty.
Planning leads to dictatorship because it is effective at its goal by using suppression of freedom.
6 Planning and the Rule of Law
Governments are limited by the Rule of Law, no ex post facto laws and rich and poor must be treated the same. You can read about Rule by Law but Hayek claims the opposite of Rule of Law is Rule of Status. Advantage goes to the wealthy. Equal execution is more important than the content of the rule.
Central Europe proves that bad governments can detour around rights.
7 Economic Control and Totalitarianism
People hate political dictators but often want an economic dictator. Hayek concludes as the Hilaire Belloc quote, "The control of the production of wealth is the control of life itself."
Planning is no longer considered as productive as the free market but is considered a "more just and equitable distribution of wealth." Socialist offer freedom from economic care but in that they take the power of choice so real freedom is given up to the planners.
8 Who, Whom?
Once the planners take a little control it snowballs until they have full control. At a certain "tipping point" the "rulers" start controlling everything and everyone.
It was not Fascists but socialists who took children at young ages for indoctrination. Same with sports, games, and clubs. Distinguishing greetings and forms of address as well as organizing into "cells" for supervision of private life was all socialist. Uniforms and military party formation were started by socialists.
9 Security and Freedom
Although this chapter ends with the famous Franklin quote, it is out of context. Hayek is speaking of economic security and admits that, "...there can be no doubt that some minimum of food, shelter, and clothing, sufficient to preserve health and the capacity to work, can be assured to everybody." Beyond this "safety net" freedom is sacrificed when a minimum level of income is assured.
When the "planners" regulate activity and people are taught to command for government rather than make filthy profits, the poor are especially hurt and placed at a disadvantage.
10 Why the Worst Get on Top
Hayek gives three reasons:
1) Educated and intelligent have varied views and tastes. Lower moral and intellectual standards find a high degree of uniformity. A dictator will increase these numbers by converting others to his creed.
2) The docile and gullible will support the dictator. A ready-made system can be "drummed into" supporters.
and 3) Negatives of hate the enemy or envy those better off are used to bring unreserved allegiance of huge masses.
Minimize the power of man over man by decentralization. Separation of economic and political aims also gives individual freedom. Power in the individual cannot be complete power. Centralized power looks exactly like slavery.
A useful assistant in the totalitarian state must be prepared to break every moral rule he has known, must commit to the leader, have no ideals or ideas of right and wrong. "The only tastes which are satisfied are the taste for power as such and the pleasure of being obeyed and of being part of a well-functioning and immensely powerful machine to which everything else must give way."
Hayek continues, "...the readiness to do bad things becomes a path to promotion and power."
11 The End of Truth
Truth in politics and science must be collective in a totalitarian society. Only the individual can guide the growth of reason.
12 The Socialist Roots of Naziism
Hayek names some socialist philosophers from around the world other than Germany. Unlike Liberalism (libertarianism),and Democracy derived from individualism and limited government, the individual under socialism is the product of autocracy and militarism.
Begun in 1914, Germany's socialism fought against liberalism after the war. It was a fight against the "enemy" which united socialists and conservatives. Starting with the German Youth Movement, this philosophy spread to intellectuals by the late 20s. "Conservative Socialism" or "Religious Socialism" led to "National socialism."
Hayek was concerned (in 1944) that "conservative socialism" was becoming popular.
13 The Totalitarians in Our Midst
The Nazi horrors may make us overconfident that we could never do that. Yet we have socialists saying the same things Germans did in the 20s and don't see where these thoughts lead.
Monopolies are accepted by people who benefit from them and the rest stay silent. In fact, Britain's Labour party in favor of a planned society is leading the country down the wrong road.
14 Material Conditions and Ideal Ends
Maybe exceptions can be made in time of war but a planned system with destruction of wheat and coffee, the over control of patents, allows the idealist to destroy freedom and ultimately bring down the country.
Collectivism's destruction has been "both inevitable and undeniable." Restraints on selfishness we learn as individuals is unleashed when we become part of a collective. This collective is antimoral as the tolerant and independent individual is sacrificed.
15 The Prospects of International Order
A world federation will not work. Wealthy countries using machines will give dollars per man-hour an advantage over poorer nations. Countries with no "Rule of Law" will be disadvantaged. The "League of Nations" did not work so another federation is not likely to be of much benefit. But we should work against war independently.
16 Conclusion
Hayek explains this book was meant to tell of past mistakes and tell how to escape the troublesome path we appear to be traveling. (The Road to Serfdom) His last sentence is, "The guiding principle that a policy of freedom for the individual is the only truly progressive policy remains as true today as it was in the nineteenth century."
No comments:
Post a Comment