Hayek: Philosophic Argument

Hayek: Philosophic Argument
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Hayek: Philosophic Argument
Summary
The philosophy of Friedrich Hayek, as 20th Century Austrian-British philosopher and economist, as portrayed in this paper involves the application and realization of free will of human beings as the basis of economic endeavor within a society- the foundation of capitalism and so the Free Market concept. The philosopher, who was the Nobel Prize (for Economics) recipient in 1974 shares considerable insight on the importance of free markets, capitalism and social justice in his philosophical literary work, "The Road to Serfdom".
Hayek is of the opinion that the government or state cannot sit back and do nothing in terms of placing some controls on the economy, he argues that "legal framework is required and that neither the existing nor the past legal rules are free from grave defects." The author further indicates that infringement of people’s freedom- because of centralized planning can be attributed (for the most part) to disregard for individualism and liberalism. Referring to political leadership of Germany and the Soviet Union back in the day, Hayek observes an oppressive society, and so the Serfdom of people.
Ideologies
Hayek’s philosophy challenged the opinions of British academicians at that time, which claimed that fascism was a counter measure of socialism. According to him, the two concepts (practiced independently in Europe on one hand and in Germany and the Soviet Union on the other), were linked by the aspect of centralized economic planning, which emphasized the significance and welfare of the state over its citizens. This scenario demonstrates a perfect example of tyranny, as the philosopher claims that Nazism has its roots in socialism, which ultimately leads to totalitarianism. He strongly believes that democracy cannot be achieved in the absence of capitalism and the free market system.
This paper finds the views of Hayek agreeable in the sense that economic planning is in fact responsible for the rise and existence of totalitarianism as mentioned earlier. The philosopher states, "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". The road to Serfdom brought to the realization of many, the concept that being against free markets is a direct violation of democracy and individual freedoms. This concept has prevailed instances of political campaigns in Europe and the United States as well. The latest scenario being the 2012, United States presidential elections. Indeed, people ought to be allowed to make their own decisions on the subject of socioeconomic activities they wish to engage in, more specifically their choice of occupation.
Apparently, and owing to growth and development witnessed by many western economies, there is no need for direct involvement of the government in allocating the labor resource within a country’s market environment; this should be determined by market conditions, to ensure efficiency and effectiveness of the resources (human capital). This ideology brings about the concept that capitalism and the free market form the only ideal system of organizing the society’s socio-economic attributes.
The other idea presented in the philosophy of Hayek involves knowl...