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''The Road to Serfdom'' ( German: ''Der Weg zur Knechtschaft'') is a book written between 1940 and 1943 by Austrian-British
economist An economist is a professional and practitioner in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this field there are ...
and philosopher
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian–British economist, legal theorist and philosopher who is best known for his defense of classical liberalism. Haye ...
. Since its publication in 1944, ''The Road to Serfdom'' has been popular among
liberal Liberal or liberalism may refer to: Politics * a supporter of liberalism ** Liberalism by country * an adherent of a Liberal Party * Liberalism (international relations) * Sexually liberal feminism * Social liberalism Arts, entertainment and m ...
(especially classical) and
conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization in ...
thinkers, and remains referenced in modern discourse. It has been translated into more than 20 languages and sold over two million copies (as of 2010). The book was first published in Britain by
Routledge Routledge () is a British multinational publisher. It was founded in 1836 by George Routledge, and specialises in providing academic books, journals and online resources in the fields of the humanities, behavioural science, education, law ...
in March 1944, during
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
, and was quite popular, leading Hayek to call it "that unobtainable book", also due in part to wartime paper rationing. It was published in the United States by the
University of Chicago Press The University of Chicago Press is the largest and one of the oldest university presses in the United States. It is operated by the University of Chicago and publishes a wide variety of academic titles, including ''The Chicago Manual of Style'', ...
in September 1944 and achieved great popularity. At the arrangement of editor
Max Eastman Max Forrester Eastman (January 4, 1883 – March 25, 1969) was an American writer on literature, philosophy and society, a poet and a prominent political activist. Moving to New York City for graduate school, Eastman became involved with radical ...
, the American magazine ''
Reader's Digest ''Reader's Digest'' is an American general-interest family magazine, published ten times a year. Formerly based in Chappaqua, New York, it is now headquartered in midtown Manhattan. The magazine was founded in 1922 by DeWitt Wallace and his wif ...
'' published an abridged version in April 1945, enabling ''The Road to Serfdom'' to reach a wider non-academic audience. ''The Road to Serfdom'' was to be the popular edition of the second volume of Hayek's treatise entitled "The Abuse and Decline of Reason", and the title was inspired by the writings of the 19th century French classical liberal thinker
Alexis de Tocqueville Alexis Charles Henri Clérel, comte de Tocqueville (; 29 July 180516 April 1859), colloquially known as Tocqueville (), was a French aristocrat, diplomat, political scientist, political philosopher and historian. He is best known for his wor ...
on the "road to servitude". In the book, Hayek of the danger of
tyranny A tyrant (), in the modern English usage of the word, is an absolute ruler who is unrestrained by law, or one who has usurped a legitimate ruler's sovereignty. Often portrayed as cruel, tyrants may defend their positions by resorting to ...
that inevitably results from government control of economic decision-making through
central planning A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, pa ...
." He further argues that the abandonment of
individualism Individualism is the moral stance, political philosophy, ideology and social outlook that emphasizes the intrinsic worth of the individual. Individualists promote the exercise of one's goals and desires and to value independence and self-reli ...
and
classical liberalism Classical liberalism is a political tradition and a branch of liberalism that advocates free market and laissez-faire economics; civil liberties under the rule of law with especial emphasis on individual autonomy, limited government, econo ...
inevitably leads to a loss of freedom, the creation of an oppressive society, the tyranny of a
dictator A dictator is a political leader who possesses absolute power. A dictatorship is a state ruled by one dictator or by a small clique. The word originated as the title of a Roman dictator elected by the Roman Senate to rule the republic in tim ...
, and the
serfdom Serfdom was the status of many peasants under feudalism, specifically relating to manorialism, and similar systems. It was a condition of debt bondage and indentured servitude with similarities to and differences from slavery, which deve ...
of the individual. Hayek challenged the view, popular among British Marxists, that
fascism Fascism is a far-right, authoritarian, ultra-nationalist political ideology and movement,: "extreme militaristic nationalism, contempt for electoral democracy and political and cultural liberalism, a belief in natural social hierarchy an ...
(including
Nazism Nazism ( ; german: Nazismus), the common name in English for National Socialism (german: Nationalsozialismus, ), is the far-right totalitarian political ideology and practices associated with Adolf Hitler and the Nazi Party (NSDAP) i ...
) was a
capitalist Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, priva ...
reaction against
socialism Socialism is a left-wing Economic ideology, economic philosophy and Political movement, movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to Private prop ...
. He argued that fascism, Nazism and state-socialism had common roots in central economic planning and empowering the state over the individual. Initially written as a response to the
report A report is a document that presents information in an organized format for a specific audience and purpose. Although summaries of reports may be delivered orally, complete reports are almost always in the form of written documents. Usage In ...
written by
William Beveridge William Henry Beveridge, 1st Baron Beveridge, (5 March 1879 – 16 March 1963) was a British economist and Liberal politician who was a progressive and social reformer who played a central role in designing the British welfare state. His 19 ...
, the
Liberal Liberal or liberalism may refer to: Politics * a supporter of liberalism ** Liberalism by country * an adherent of a Liberal Party * Liberalism (international relations) * Sexually liberal feminism * Social liberalism Arts, entertainment and m ...
politician and dean of the
London School of Economics The London School of Economics and Political Science (LSE) is a public university, public research university located in London, England and a constituent college of the federal University of London. Founded in 1895 by Fabian Society members Sidn ...
where Hayek worked at the time, the book made a significant impact on 20th-century political discourse, especially American
conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization in ...
and libertarian economic and political debate, being often cited today by commentators. Subject to much attention, the ideas advocated in ''The Road to Serfdom'' have been criticized and defended by many academics since the book was published.


Publication

While a professor at the
London School of Economics The London School of Economics and Political Science (LSE) is a public university, public research university located in London, England and a constituent college of the federal University of London. Founded in 1895 by Fabian Society members Sidn ...
in the early 1930s – in the era of the Great Depression, the rise of autocracies in
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eig ...
,
Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
and
Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
, and
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
– Hayek wrote a memo to
William Beveridge William Henry Beveridge, 1st Baron Beveridge, (5 March 1879 – 16 March 1963) was a British economist and Liberal politician who was a progressive and social reformer who played a central role in designing the British welfare state. His 19 ...
, then the director there, to dispute the then-popular claim that
fascism Fascism is a far-right, authoritarian, ultra-nationalist political ideology and movement,: "extreme militaristic nationalism, contempt for electoral democracy and political and cultural liberalism, a belief in natural social hierarchy an ...
represented the dying gasp of a failed
capitalist system Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private pr ...
. The memo grew into a magazine article, and he intended to incorporate elements of the article into a book much larger than ''The Road to Serfdom''. However, he ultimately decided to write ''The Road to Serfdom'' as its own book. The book was originally published for a British audience by Routledge Press in March 1944 in the United Kingdom. The book was subsequently rejected by three publishers in the United States, and it was only after economist
Aaron Director Aaron Director (; September 21, 1901 – September 11, 2004) was a Russian-born American economist and academic who played a central role in the development of the field Law and Economics and the Chicago school of economics. Director was a profe ...
spoke to friends at the University of Chicago that the book was published in the U.S by the
University of Chicago Press The University of Chicago Press is the largest and one of the oldest university presses in the United States. It is operated by the University of Chicago and publishes a wide variety of academic titles, including ''The Chicago Manual of Style'', ...
on September 18, 1944. The American publisher’s expectation was that the book would sell between 900 and 3,000 copies. But the initial printing run of 2,000 copies was quickly sold out, and 30,000 copies were sold within six months. , the University of Chicago Press estimated that more than 350,000 copies had been sold. A 20-page version of the book was then published in the April 1945 issue of ''
Reader's Digest ''Reader's Digest'' is an American general-interest family magazine, published ten times a year. Formerly based in Chappaqua, New York, it is now headquartered in midtown Manhattan. The magazine was founded in 1922 by DeWitt Wallace and his wif ...
'', with a press run of several million copies. A 95-page abridged version was also published in 1945 and 1946. In February 1945, a picture-book version was published in ''Look'' magazine, later made into a pamphlet and distributed by General Motors. The book has been translated into approximately 20 languages and is dedicated "To the
socialists Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the eco ...
of all
parties A party is a gathering of people who have been invited by a host for the purposes of socializing, conversation, recreation, or as part of a festival or other commemoration or celebration of a special occasion. A party will often feature ...
". The introduction to the 50th anniversary edition is written by
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
(another recipient of the
Nobel Prize in Economics The Nobel Memorial Prize in Economic Sciences, officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel ( sv, Sveriges riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne), is an economics award administered ...
1976). In 2007, the University of Chicago Press issued a "Definitive Edition", Volume 2 in the ''Collected Works of F. A. Hayek'' series. In June 2010, the book achieved new popularity by rising to the top of the
Amazon.com Amazon.com, Inc. ( ) is an American multinational technology company focusing on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It has been referred to as "one of the most influential econo ...
bestseller list following extended coverage of the book on ''
The Glenn Beck Program ''Glenn'' (previously titled ''The Glenn Beck Program'') is a news talk and political opinion show on TheBlaze hosted by Glenn Beck. It is produced and recorded at TheBlaze studios in Dallas, TX. The show originally ran on CNN Headline News fr ...
''. Since that date, it has sold another 250,000 copies in its print and digital editions.


Summary

Hayek argues that Western democracies, including the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
and the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
, have "progressively abandoned that freedom in economic affairs without which personal and political freedom has never existed in the past". Society has mistakenly tried to ensure continuing prosperity by centralized planning, which inevitably leads to totalitarianism. "We have in effect undertaken to dispense with the forces which produced unforeseen results and to replace the impersonal and anonymous mechanism of the market by collective and ‘conscious’ direction of all social forces to deliberately chosen goals." Socialism, while presented as a means of assuring equality, does so through "restraint and servitude", while "democracy seeks equality in liberty". Planning, because it is coercive, is an inferior method of regulation, while the competition of a
free market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
is superior "because it is the only method by which our activities can be adjusted to each other without coercive or arbitrary intervention of authority".
Centralized planning A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, par ...
is inherently undemocratic in Hayek's view, because it requires "that the will of a small minority be imposed upon the people". The power of these minorities to act by taking money or property in pursuit of centralized goals, destroys the Rule of Law and individual freedoms. Where there is centralized planning, "the individual would more than ever become a mere means, to be used by the authority in the service of such abstractions as the '
social welfare Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
' or the 'good of the community'". Even the very poor have more personal freedom in an open society than a centrally planned one. "While the last resort of a competitive economy is the bailiff, the ultimate sanction of a planned economy is the hangman." Socialism is a hypocritical system, because its professed humanitarian goals can only be put into practice by brutal methods "of which most socialists disapprove". Such centralized systems also require effective propaganda, so that the people come to believe that the state's goals are theirs. Hayek argues that the roots of National Socialism lie in socialism, and then draws parallels to the thought of British leaders:
The increasing veneration for the state, the admiration of power, and of bigness for bigness' sake, the enthusiasm for "organization" of everything (we now call it "planning") and that "inability to leave anything to the simple power of organic growth" ... are all scarcely less marked in England now than they were in Germany.
Hayek believed that after World War II, "wisdom in the management of our economic affairs will be even more important than before and that the fate of our civilization will ultimately depend on how we solve the economic problems we shall then face". The only chance to build a decent world is "to improve the general level of wealth" via the activities of
free market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
s. He saw international organization as involving a further threat to individual freedom. He concluded: "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."


Role of government

Although Hayek believed that government intervention in markets would lead to a loss of freedom, he recognized a limited role for government to perform tasks for which he believed free markets were not capable:
The successful use of competition as the principle of social organization precludes certain types of coercive interference with economic life, but it admits of others which sometimes may very considerably assist its work and even requires certain kinds of government action.
While Hayek is opposed to regulations that restrict the freedom to enter a trade, or to buy and sell at any price, or to control quantities, he acknowledges the utility of regulations that restrict legal methods of production, so long as these are applied equally to everyone and not used as an indirect way of controlling prices or quantities, and without forgetting the cost of such restrictions:
To prohibit the use of certain poisonous substances, or to require special precautions in their use, to limit working hours or to require certain sanitary arrangements, is fully compatible with the preservation of competition. The only question here is whether in the particular instance the advantages gained are greater than the social costs they impose.
He notes that there are certain areas, such as the environment, where activities that cause damage to third parties (known to economists as "negative
externalities In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...
") cannot effectively be regulated solely by the marketplace:
Nor can certain harmful effects of deforestation, of some methods of farming, or of the smoke and noise of factories, be confined to the owner of the property in question, or to those willing to submit to the damage for an agreed compensation.
The government also has a role in preventing fraud:
Even the most essential prerequisite of its he market'sproper functioning, the prevention of fraud and deception (including exploitation of ignorance), provides a great and by no means fully accomplished object of legislative activity.
The government also has a role in creating a safety net:
There is no reason why, in a society which has reached the general level of wealth ours has, the first kind of security should not be guaranteed to all without endangering general freedom; that is: some minimum of food, shelter and clothing, sufficient to preserve health. Nor is there any reason why the state should not help to organize a comprehensive system of social insurance in providing for those common hazards of life against which few can make adequate provision.
He concludes: "In no system that could be rationally defended would the state just do nothing."


Clarifications

Since publication, Hayek has offered a number of clarifications on words that are frequently misinterpreted: * "Socialism", as Hayek used it, refers to
state socialism State socialism is a political and economic ideology within the socialist movement that advocates state ownership of the means of production. This is intended either as a temporary measure, or as a characteristic of socialism in the transition ...
and is used to mean state control of the economy, not a
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equita ...
* "Classical liberal ideals", means
liberty Liberty is the ability to do as one pleases, or a right or immunity enjoyed by prescription or by grant (i.e. privilege). It is a synonym for the word freedom. In modern politics, liberty is understood as the state of being free within society fr ...
, freedom and
individual rights Group rights, also known as collective rights, are rights held by a group '' qua'' a group rather than individually by its members; in contrast, individual rights are rights held by individual people; even if they are group-differentiated, which ...
, as Hayek understood them


Reception


Impact

, the University of Chicago Press estimated that more than 350,000 copies of ''The Road to Serfdom'' have been sold. It appears on
Martin Seymour-Smith Martin Roger Seymour-Smith (24 April 1928 – 1 July 1998) was a British poet, literary critic, and biographer. Biography Seymour-Smith was born in London and educated at Highgate School and St Edmund Hall, Oxford, where he was editor of ''Isi ...
's list of the ''
100 Most Influential Books Ever Written ''The 100 Most Influential Books Ever Written: The History of Thought from Ancient Times to Today'' (1998) is a book of intellectual history written by Martin Seymour-Smith, a British poet, critic, and biographer. The list starts in order wi ...
'', and it made number 1 on Human Events: Top Ten Books Every Republican Congressman Should Read in 2006. It was influential enough to warrant mention during the 1945 British general election, when according to Harold Macmillan,
Winston Churchill Sir Winston Leonard Spencer Churchill (30 November 187424 January 1965) was a British statesman, soldier, and writer who served as Prime Minister of the United Kingdom twice, from 1940 to 1945 during the Second World War, and again from ...
was "fortified in his apprehensions Labour_government.html" ;"title="Labour_Party_(UK).html" ;"title="f a Labour Party (UK)">Labour government">Labour_Party_(UK).html" ;"title="f a Labour Party (UK)">Labour governmentby reading Professor Hayek's ''The Road to Serfdom''" when he warned in an election broadcast in 1945 that a socialist system would "have to fall back on some form of Gestapo". The Labour leader Clement Attlee responded in his election broadcast by claiming that what Churchill had said was the "second-hand version of the academic views of an Austrian professor, Friedrich August von Hayek". The
Conservative Central Office The Conservative Campaign Headquarters (CCHQ), formerly known as Conservative Central Office (CCO), is the headquarters of the British Conservative Party, housing its central staff and committee members, including campaign coordinators and man ...
sacrificed 1.5 tons of their precious paper ration allocated for the 1945 election so that more copies of ''The Road to Serfdom'' could be printed, although to no avail, as Labour won a landslide victory. Political historian Alan Brinkley had this to say about the impact of ''The Road to Serfdom'':
The publication of two books ... helped to galvanize the concerns that were beginning to emerge among intellectuals (and many others) about the implications of
totalitarianism Totalitarianism is a form of government and a political system that prohibits all opposition parties, outlaws individual and group opposition to the state and its claims, and exercises an extremely high if not complete degree of control and regu ...
. One was
James Burnham James Burnham (November 22, 1905 – July 28, 1987) was an American philosopher and political theorist. He chaired the New York University Department of Philosophy; his first book was ''An Introduction to Philosophical Analysis'' (1931). Burn ...
’s The Managerial Revolution ... secondFriedrich A. Hayek’s ''The Road to Serfdom'' ... was far more controversial—and influential. Even more than Burnham, Hayek forced into public discourse the question of the compatibility of democracy and
statism In political science, statism is the doctrine that the political authority of the state is legitimate to some degree. This may include economic and social policy, especially in regard to taxation and the means of production. While in use s ...
 ... In responding to Burnham and Hayek ... liberals n the statist sense of this term as used by some in the United Stateswere in fact responding to a powerful strain of Jeffersonian anti-statism in American political culture ... The result was a subtle but important shift in liberal .e. American statistthinking.


Reviews

''The Road to Serfdom'' has been the subject of much praise and much criticism. It was placed fourth on the list of the 100 best non-fiction books of the 20th century compiled by ''
National Review ''National Review'' is an American conservative editorial magazine, focusing on news and commentary pieces on political, social, and cultural affairs. The magazine was founded by the author William F. Buckley Jr. in 1955. Its editor-in-chief ...
'' magazine, was ranked number 16 in reader selections of the hundred best non-fiction book of the twentieth century administered by Modern Library, and appears on a recommended reading list for the libertarian right hosted on the Political Compass test website.
John Maynard Keynes John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...
said of it: "In my opinion it is a grand book ... Morally and philosophically I find myself in agreement with virtually the whole of it: and not only in agreement with it, but in deeply moved agreement." However, Keynes did not think Hayek's philosophy was of ''practical'' use; this was explained later in the same letter, commenting: "What we need therefore, in my opinion, is not a change in our economic programmes, which would only lead in practice to disillusion with the results of your philosophy; but perhaps even the contrary, namely, an enlargement of them. Your greatest danger ahead is the probable practical failure of the application of your philosophy in the United States." George Orwell responded with both praise and criticism, stating, "in the negative part of Professor Hayek's thesis there is a great deal of truth. It cannot be said too often – at any rate, it is not being said nearly often enough – that collectivism is not inherently democratic, but, on the contrary, gives to a tyrannical minority such powers as the Spanish Inquisitors never dreamt of." Yet he also warned, " return to 'free' competition means for the great mass of people a tyranny probably worse, because more irresponsible, than that of the state."
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
described ''The Road to Serfdom'' as "one of the great books of our time," and said of it:
I think the Adam Smith role was played in this cycle [i.e. the late twentieth century collapse of socialism in which the idea of free-markets succeeded first, and then special events catalyzed a complete change of socio-political policy in countries around the world] by Friedrich Hayek’s ''The Road to Serfdom''.
Herman Finer, a Fabian Society, Fabian socialist, published a rebuttal in his ''The Road to Reaction'' in 1946. Hayek called Finer's book "a specimen of abuse and invective which is probably unique in contemporary academic discussion". In his review (collected in ''The Present as History'', 1953) Marxist
Paul Sweezy Paul Marlor Sweezy (April 10, 1910 – February 27, 2004) was a Marxist economist, political activist, publisher, and founding editor of the long-running magazine ''Monthly Review''. He is best remembered for his contributions to economic theory ...
joked that Hayek would have you believe that if there was an over-production of baby carriages, the central planners would then order the population to have more babies instead of simply warehousing the temporary excess of carriages and decreasing production for next year. The
cybernetic Cybernetics is a wide-ranging field concerned with circular causality, such as feedback, in regulatory and purposive systems. Cybernetics is named after an example of circular causal feedback, that of steering a ship, where the helmsperson ma ...
arguments of
Stafford Beer Anthony Stafford Beer (25 September 1926 – 23 August 2002) was a British theorist, consultant and professor at the Manchester Business School. He is best known for his work in the fields of operational research and management cybernetics. ...
in his 1973 CBC Massey Lectures, ''Designing Freedom'' – that intelligent adaptive planning can increase freedom – are of interest in this regard, as is the technical work of
Herbert A. Simon Herbert Alexander Simon (June 15, 1916 – February 9, 2001) was an American political scientist, with a Ph.D. in political science, whose work also influenced the fields of computer science, economics, and cognitive psychology. His primary ...
and
Albert Ando was a Japanese-born economist. Biography He was born in Tokyo, as a member of family running Ando Corporation, a major construction company. He didn't join the family business, and came to the United States after World War II. He received hi ...
on the dynamics of hierarchical nearly decomposable systems in economics – namely, that everything in such a system is not tightly coupled to everything else.
Mises Institute Ludwig von Mises Institute for Austrian Economics, or Mises Institute, is a libertarian nonprofit think tank headquartered in Auburn, Alabama, United States. It is named after the Austrian School economist Ludwig von Mises (1881–1973). It ...
economist
Walter Block Walter Edward Block (born August 21, 1941) is an American Austrian School economist and anarcho-capitalist theorist. He currently holds the Harold E. Wirth Eminent Scholar Endowed Chair in Economics at the School of Business at Loyola Universit ...
has observed critically that while ''The Road to Serfdom'' makes a strong case against centrally planned economies, it appears only lukewarm in its support of a
free market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
system and ''
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies) deriving from special interest groups ...
''
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, priva ...
, with Hayek even going so far as to say that "probably nothing has done so much harm to the liberal cause as the wooden insistence of some liberals on certain rules of thumb, above all the principle of laissez-faire capitalism". In the book, Hayek writes that the government has a role to play in the economy through the monetary system (a view that he later withdrew), work-hours regulation, social welfare, and institutions for the flow of proper information. Through analysis of this and many other of Hayek's works, Block asserts that: "in making the case against socialism, Hayek was led into making all sort of compromises with what otherwise appeared to be his own philosophical perspective – so much so, that if a system was erected on the basis of them, it would not differ too sharply from what this author explicitly opposed".


Criticism

Jeffrey Sachs Jeffrey David Sachs () (born 5 November 1954) is an American economist, academic, public policy analyst, and former director of The Earth Institute at Columbia University, where he holds the title of University Professor. He is known for his work ...
argues that
empirical evidence Empirical evidence for a proposition is evidence, i.e. what supports or counters this proposition, that is constituted by or accessible to sense experience or experimental procedure. Empirical evidence is of central importance to the sciences ...
suggests
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equita ...
s, with high rates of taxation and social outlays, outperform the comparatively free-market economies.
William Easterly William Russell Easterly (born September 7, 1957) is an American economist, specializing in economic development. He is a professor of economics at New York University, joint with Africa House, and co-director of NYU’s Development Research Inst ...
wrote a rebuttal criticizing Sachs for misrepresenting Hayek's work and for criticizing the book on issues it did not actually address, such as welfare programs for the elderly or sick, something Hayek was not entirely opposed to. Easterly noted that ''The Road to Serfdom'' was about the dangers of centralized planning and nationalization of industry, including the media. In Sachs' counter-rebuttal, he argued that he was addressing Hayek's foreword in the 1976 adaptation which stated that efforts to bring about large-scale welfare states would bring about serfdom, although much more slowly than under centralized planning. Sachs cited the Nordic states which remained economically free and relatively capitalist, despite a large welfare state that Hayek was wrong about such programs leading to serfdom.
Gordon Tullock Gordon Tullock (; February 13, 1922 – November 3, 2014) was an economist and professor of law and Economics at the George Mason University School of Law. He is best known for his work on public choice theory, the application of economic thinkin ...
has argued Hayek's analysis incorrectly predicted governments in much of Europe in the late 20th century would descend into
totalitarianism Totalitarianism is a form of government and a political system that prohibits all opposition parties, outlaws individual and group opposition to the state and its claims, and exercises an extremely high if not complete degree of control and regu ...
. He uses Sweden, in which the government at that time controlled 63 percent of
GNP The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP), plus factor incomes earned by foreign ...
, as an example to support his argument that the basic problem with ''The Road to Serfdom'' is "that it offered predictions which turned out to be false. The steady advance of government in places such as Sweden has not led to any loss of non-economic freedoms." While criticizing Hayek, Tullock still praises the classical liberal notion of economic freedom, saying, "Arguments for political freedom are strong, as are the arguments for economic freedom. We needn’t make one set of arguments depend on the other." However, according to
Robert Skidelsky Robert Jacob Alexander, Baron Skidelsky, (born 25 April 1939) is a British economic historian. He is the author of a three-volume award-winning biography of British economist John Maynard Keynes (1883–1946). Skidelsky read history at Jesus ...
, Hayek "safeguarded himself from such retrospective refutation". Skidelsky argues that Hayek's argument was contingent, and that, "By the 1970s there was some evidence of the slippery slope ... and then there was Thatcher. Hayek's warning played a critical part in her determination to 'roll back the state.'" Economic sociologist
Karl Polanyi Karl Paul Polanyi (; hu, Polányi Károly ; 25 October 1886 – 23 April 1964),''Encyclopædia Britannica'' (Chicago: Encyclopædia Britannica Inc. 2003) vol 9. p. 554 was an Austro-Hungarian economic anthropologist and politician, best known ...
made a case diametrically opposed to Hayek, arguing that unfettered markets had undermined the social order and that economic breakdown had paved the way for the emergence of dictatorship. Barbara Wootton wrote ''Freedom under Planning'' after reading an early copy of ''The Road to Serfdom'', provided to her by Hayek. In the introduction to her book, Wootton mentioned ''The Road to Serfdom'' and claimed that "Much of what I have written is devoted to criticism of the views put forward by Professor Hayek in this and other books." The central argument made in ''Freedom under Planning'' is that "there is nothing in the conscious planning of economic priorities which is inherently incompatible with the freedoms which mean most to the contemporary Englishman or American. Civil liberties are quite unaffected. We can, if we wish, deliberately plan so as to give the fullest possible scope for the pursuit by individuals and social groups of cultural ends which are in no way state-determined." Wootton criticizes Hayek for claiming that planning ''must'' lead to oppression, when, in her view, that is merely one ''possibility'' among many. She argues that "there seems hardly better case for taking for granted that planning will bring the worst to the top than for the opposite assumption that the seats of office will be filled with angels". Thus, Wootton acknowledges the possibility that planning may exist alongside tyranny, but claims that it is equally possible to combine planning with freedom. She concludes that "A happy and fruitful marriage between freedom and planning can, in short, be arranged." However,
Frank Knight Frank Hyneman Knight (November 7, 1885 – April 15, 1972) was an American economist who spent most of his career at the University of Chicago, where he became one of the founders of the Chicago School. Nobel laureates Milton Friedman, George ...
, founder of the Chicago school of economics, disputes the claim that ''Freedom under Planning'' contradicts ''The Road to Serfdom''. He wrote in a scholarly review of the Wootton book: "Let me repeat that the Wootton book is in no logical sense an answer to ''The Road to Serfdom'', whatever may be thought of the cogency of Hayek's argument, or the soundness of his position." Eric Zencey wrote that the free market economy Hayek advocated is designed for an infinite planet, and when it runs into physical limits (as any growing system must), the result is a need for centralized planning to mediate the problematic interface of economy and nature. "Planning is planning, whether it's done to minimize poverty and injustice, as socialists were advocating then, or to preserve the minimum flow of
ecosystem services Ecosystem services are the many and varied benefits to humans provided by the natural environment and healthy ecosystems. Such ecosystems include, for example, agroecosystems, forest ecosystem, grassland ecosystems, and aquatic ecosystems. ...
that civilization requires, as we are finding increasingly necessary today."


See also


General concepts

* Criticism of anarchism * Criticism of communism * Criticism of socialism *
Economic calculation problem The economic calculation problem (sometimes abbreviated ECP) is a criticism of using economic planning as a substitute for market-based allocation of the factors of production. It was first proposed by Ludwig von Mises in his 1920 article "Eco ...
, the difficulties of central planning *
Institute of Economic Affairs The Institute of Economic Affairs (IEA) is a right-wing pressure group and think tank registered as a UK charity Associated with the New Right, the IEA describes itself as an "educational research institute", and says that it seeks to "further ...
*
New class New class is used as a polemic term by critics of countries that followed the Soviet-type Communism to describe the privileged ruling class of bureaucrats and Communist party functionaries which arose in these states. Generally, the group known ...
, a theory of new social groups in post-industrial societies * Nomenklatura, a class of soviet communist appointees


Books

* '' Individualism and Economic Order'' * ''
Law, Legislation and Liberty ''Law, Legislation and Liberty'' is a work in three volumes by Nobel laureate economist and political philosopher Friedrich Hayek. In it, Hayek further develops the philosophical principles he discussed earlier in ''The Road to Serfdom'', ''The ...
'' * '' Omnipotent Government'' * '' The Constitution of Liberty'' * ''
The Fatal Conceit ''The Fatal Conceit: The Errors of Socialism'' is a book written by the economist and political philosopher Friedrich Hayek and edited by the philosopher William Warren Bartley. The book was first published in 1988 by the University of Chicago Pr ...
''


Notes


References

* * * * *


Further reading

* Caldwell, Bruce. 2020. "''The Road to Serfdom'' after 75 Years." Journal of Economic Literature, 58 (3): 720-48.


External links

* * * * (a video closely based on the Look Magazine cartoon version) * * * {{DEFAULTSORT:Road To Serfdom, The 1944 non-fiction books Books about capitalism Books critical of communism Books about conservatism Books about democracy Books about fascism Books about liberalism Books about Marxism Books about socialism Books by Friedrich Hayek Books in political philosophy Classical liberalism Conservative media in the United Kingdom Conservative media in the United States Economics books Liberalism Liberalism in the United Kingdom Right-libertarianism Right-wing politics in the United Kingdom Right-wing politics in the United States Routledge books University of Chicago Press books