Category Archives: Cold War

Hayek, The Busted Flush: Economic Value, Marketisation, and Social Justice

Hayek has had some dark times, and some critics, but the last twenty years of his life or so were pretty sweet. Since he died, he’s had an awful time of it.

How do markets optimise the delivery of social services and social welfare? This question surfaces many of the challenges for the Austrian School, the philosophy that free markets and the price mechanism can do a remarkable job in managing people and their behaviour. While initially Friedrich Hayek’s theorising argued that the role of the State should be minimal, he ultimately conceded that some State regulation was required in order to maintain markets, and some other functions. For example, ‘[t]o 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.’ (The Road to Serfdom, p.38/9) The ultimate question of Hayekian liberalism is how much does the government have to interfere? What is the minimum possible function of government? Continue reading

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The Idea of France

Delacroix's <i>Liberty Leading the People</i>

Delacroix’ Liberty Leading the People. She – Liberty – is so much more than the country: she is the ideal and the aspiration, the unadulterated guiding principle. Her path remains clear; but have the people stopped following her?

As Francois Hollande transitions from the bureaucratic administrator of the Fifth French Republic to a wartime leader in the latest instalment of the rolling war on terror, decisions are being made about France. The latest pronouncements – from overbearing surveillance measures introduced in the Summer in the aftermath of the Charlie Hebdo killings, to the most recent introduction of a three month state of emergency in order to deal with the Paris attacks – diminish democratic governance and accountability, in the short-sighted interests of expediency and national security. But this disaffected progression is not new; perhaps the January and November attacks were more overtly offensive than before, and appear more obvious inflection points, but we must go back ten years to the riots of 2005 to try and understand what is happening. Furthermore, the decisions being made today are not merely reflective of missteps taken in the past, but instructive as to the kind of France that is emerging for the future. And for France, we can read Europe, and Western Liberalism.

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Inequality and Democracy

Wen Jiabao

Outgoing Chinese Premier Wen Jiabao: “Social strains are clearly increasing.”

Outgoing Chinese Prime Minister Wen Jiabao today added his voice (not for the first time) to those warning against rising inequality as a threat to China’s development.  Imbalances in economic growth he warned were threatening the success of the economy.  “We must make ensuring and improving people’s wellbeing the starting point and goal of all the government’s work, give entire priority to it and strive to strengthen social development,” he added.  It is a common refrain, and one that goes to the root of modern statecraft.

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