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    Chapter 6 The Second World War and Hayek's Road To Serfdom

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    Gwen
    Friedrich Hayek argued that central economic planning leads to a loss of individual liberty and a less prosperous economy. He saw Nazism and fascism as examples of how extensive government intervention and control over the economy undermines competition and consumer sovereignty. Hayek's book "The Road to Serfdom" warned that centralized control of economic decisions and planning could enable individuals skilled in political power to dominate entire systems, threatening individual freedom.

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    Chapter 6 The Second World War and Hayek's Road To Serfdom

    Uploaded by

    Gwen
    30 views17 pages
    Friedrich Hayek argued that central economic planning leads to a loss of individual liberty and a less prosperous economy. He saw Nazism and fascism as examples of how extensive government intervention and control over the economy undermines competition and consumer sovereignty. Hayek's book "The Road to Serfdom" warned that centralized control of economic decisions and planning could enable individuals skilled in political power to dominate entire systems, threatening individual freedom.

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    Chapter 6 The Second World War and Hayek's Road to Serfdom

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    Friedrich Hayek argued that central economic planning leads to a loss of individual liberty and a less prosperous economy. He saw Nazism and fascism as examples of how extensive government intervention and control over the economy undermines competition and consumer sovereignty. Hayek's book "The Road to Serfdom" warned that centralized control of economic decisions and planning could enable individuals skilled in political power to dominate entire systems, threatening individual freedom.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views17 pages

    Chapter 6 The Second World War and Hayek's Road To Serfdom

    Uploaded by

    Gwen
    Friedrich Hayek argued that central economic planning leads to a loss of individual liberty and a less prosperous economy. He saw Nazism and fascism as examples of how extensive government intervention and control over the economy undermines competition and consumer sovereignty. Hayek's book "The Road to Serfdom" warned that centralized control of economic decisions and planning could enable individuals skilled in political power to dominate entire systems, threatening individual freedom.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 17

    Chapter 6:

    The Second World


    War and Hayek's
    Road to Serfdom
    The Role of the State in the Economy
    Adolf Hitler
    Described to be "wholly
    ignorant"of economics
    Choice of economic policies
    appears to have been guided by
    no principle other than to
    enhance his government's power
    No coherent economic
    philosophy but followed an in-
    built interventionist policy
    dynamic
    National socialism
    Rejected classical liberalism and its precept of a free market
    economy
    Genuine socialist movement, whose leading ideas are the final fruit
    of the anti-liberal tendencies
    Fascism
    No revolutionary changes of the economic and social structure of
    society
    Interventionism + collectivist phraseology -> heavily monopolistic-
    interventionistic society adorned terminological and phraseological
    ornaments with an extensive government control of prices and
    capital investment and large socialization of losses (Ropke)
    Nazi's New Plan
    Brought government control of all import and export transactions,
    together with industrial cartelization and public works projects
    Centralized agricultural policy and import quotas led to shortfalls in
    food production and sharp price increases
    Full employment policy was the engine driving the steady increase in
    the degree of central government control
    Printed paper
    Full employment Large public works
    marks for funding

    Diluted value of
    Price freeze Price inflation
    money
    Prioritized
    Shortage of industries and
    Rationing system
    consumer goods allocated raw
    materials
    Possible impact of prize freeze
    Worker unrest
    Demand for higher wages
    WERNER SOMBART
    Offered a Marxian-influenced critical
    history of modern capitalism in the
    style of the younger historical school
    Linked the risk of capitalism to a
    Jewish aptitude for enterprise
    Most directly relevant to Nazi
    economic policy was Deutscher
    Sozialismus (German Socialism)
    FRIEDRICH HAYEK
    Rejected the view that central
    economic planning was a way to save
    Western societies from
    totalitarianism
    Saw central planning as a path toward
    loss of liberty
    Argued that the effort to centrally
    plan has a serious political
    disadvantage
    FRIEDRICH HAYEK
    Argued that a centrally planned
    economy could not produce anything
    close to the prosperity of a freely
    competitive economy
    Market economy is a more prosperous
    system because it allowed individuals to
    make the fullest use of their own special
    bits of expertise in directing the
    allocation of scarce resources
    FRIEDRICH HAYEK
    Rules of a centrally planned economy
    will be strongly tempted not to
    respect consumer sovereignty
    Individuals skilled in wielding political
    power will get ahead in a system
    where political power controls
    everything
    Individualism
    Individuals should be allowed within defined limits to follow their
    own values and preferences rather than somebody else's
    Recognition of the individual as the ultimate judge of their ends, the
    belief that as far as possible his/her own views ought to govern
    his/her actions, that forms the essence of the individualist position
    Fundamental principles of individualism
    and classical liberalism
    Free choice Rule of law Private property
    Making use of the Government in Emphasized the
    spontaneous all its actions is essential role of
    forces of society bound by rules dispersed property
    Resorting as little fixed and ownership in
    as possible to announced enabling
    coercion competition to
    take place
    Hayek's Road to Serfdom
    Serfdom - medieval serf's obligation
    and dependency to his/her feudal
    lord
    Success in the US despite being
    written for the British audience
    Impact on leaders: Margaret
    Thatcher and Ronald Reagan
    Complemented by the works of
    George Orwell (Animal Farm and
    1984 on the dangers of oppression
    under total state control)

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