Torn Between Capitalism and Idealism

 8 May 1899-March 1992  From Vienna, Austria  Studied law at the University of Vienna  Obtained Juris Doctor in 1921, and a

doctorate in political science in 1923  Was a research assistant at New York

University  Co-founded the Austrian Institute for

Business Cycle Research in 1927  Most famous for his book The Road to

Serfdom

 Key argument: Socialism stifles individual freedom and inevitably leads to totalitarian forms of government.

Pol Pot, former Cambodian dictator

Mao Zedong

Torture in the Pol Pot regime

 Uncontrolled systems can’t be unfair, since the outcome is not planned in favor of a particular party or individual

 Best way to encourage trade and specialization

 Government intervention can only lead to inflation

 Again…Hayek believed that government control of the economy would lead to totalitarianism.

  Believed certain situations merited government intervention

  Supported minimum living standards

  Supported some redistribution of capital

  Hated inequality of social classes

  Wanted to prevent economic busts by steering clear of economic booms (often caused by capitalist systems)

Salvador Allende, the former President of

Chile

 Hayek essentially wanted a capitalist economic system with minimal government control, that still had the benefits of a socialist system, like fulfillment of basic needs, equality, and a more even wealth distribution.

  Lamer, Jesse. “Who’s Afraid of Friedrich Hayek?” Dissent Vol. 55 Winter 2008: 85-90.

ProQuest. 9 February 2010 <http://proquest.umi.com/>.   “Overview of F(riedrich) A(ugust von) Hayek." DISCovering Authors. Online

ed. Detroit: Gale, 2003. Discovering Collection. Web. 9 Feb. 2010. <http://find.galegroup.com/gps/start.do?prodId=IPS&userGroupName=ithac>.

  Leube, Kurt R. "Hayek, Friedrich A. von (1899-1992)." Encyclopedia of World Biography. Ed. Suzanne M. Bourgoin. 2nd ed. Detroit: Gale Research, 1998. Discovering Collection. Web. 9 Feb. 2010.

<http://find.galegroup.com/gps/start.do?prodId=IPS&userGroupName=ithaca>.

  “Friedrich August Hayek.” The Concise Encyclopedia of Economics. Library of Economics and Liberty. 9 February 2010 <http://econlib.org/library/Enc/bios/Hayek.html>.