Category Archives: Hayek

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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Bewilderment: Politics, Technology and Ecology in a World that Stopped Making Sense

moon surface

The lunar surface, photographed in 1966.

Since the second world war, our politics has become increasingly distant from people. Voter participation has declined, distrust in politicians has grown, and corruption perceptions have increased in many jurisdictions. Inequality has accelerated as those with the highest wealth and income acquire ever greater resources – far more than they can reasonably consume – while those at the other end of the economic spectrum see their lot diminish. The relationships between commerce and politics have deepened as free market policies have governed national policy in western liberal democracies across the range of services, from social welfare and healthcare to infrastructure and defence. These institutions, invested with authority and legitimacy by democratic processes, appear foreign to the people they claim to serve; their values – of costs, efficiencies, and performance – seem distant from their clients. These institutions often instil fear, driven as they are by objectives of enforcement, compliance, and law.

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Snippet: Fuzzy, Uncertain Nature

Lotfi Zadeh, inventor of fuzzy logic, who died earlier this month at the age of 96.

I’ve long had an idea about the curved nature of things, the non-binary natural order. This is not the same as relativism versus absolutism, which is one sense a binary opposition in itself; rather, it is a straight acknowledgement that truth is never fully observable, that is it at least always subjective, and that even in the subjective moment it is mutable. What I see may not be what you see; and what I see is inconstant. Time impacts on that observation such that its character is unstable. Take pain and pleasure, for example. While on the one hand some people take a kind of satisfaction from pain, and are attracted to it, whether physical or emotional, so too others recoil from pleasure, perhaps based on guilt, or other psychological alignments. Still further, the same act – a touch – can bring immediate pleasure, while the same act, more forcefully applied, can either increase the pleasure or turn at some point to pain.  Continue reading

Hayek’s Absolutism

Hayek lived long enough to see his ideas ascendant in western politics, which was something of a gift; perhaps it was an equally valuable reward to have missed the bit when it all went pear-shaped.

In reading several articles on Friedrich Hayek recently, two words kept coming to mind: absolutism and elegance. Hayek appears to my inexpert reading to have been a highly scientific thinker, one with a good degree of faith in the scientific method. Attached to this is a consciousness of the sublime, a sense that there is a truth to be found in thought, an awareness of a tangible human goal of understanding. There is, in other words, a destination for our species. Continue reading

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