Hayek


Mark Steyn:

…Is America set for decline? It’s been a grand run. The country’s been the leading economic power since it overtook Britain in the 1880s. That’s impressive. Nevertheless, over the course of that century and a quarter, Detroit went from the world’s industrial powerhouse to an urban wasteland, and the once golden state of California atrophied into a land of government run by the government for the government.  What happens when the policies that brought ruin to Detroit and sclerosis to California became the basis for the nation at large? Strictly on the numbers, the United States is in the express lane to Declinistan: Unsustainable entitlements, the remorseless governmentalization of the American economy and individual liberty, and a centralization of power that will cripple a nation of this size. Decline is the way to bet. But what will ensure it is if the American people accept decline as a price worth paying for European social democracy….

…Hayek’s greatest insight in The Road To Serfdom is psychological: “There is one aspect of the change in moral values brought about by the advance of collectivism which at the present time provides special food for thought,” he wrote with an immigrant’s eye on the Britain of 1944. “It is that the virtues which are held less and less in esteem and which consequently become rarer are precisely those on which the British people justly prided themselves and in which they were generally agreed to excel.

 The virtues possessed by Anglo-Saxons in a higher degree than most other people, excepting only a few of the smaller nations, like the Swiss and the Dutch, were independence and self-reliance, individual initiative and local responsibility, the successful reliance on voluntary activity, non-interference with one’s neighbor and tolerance of the different and queer, respect for custom and tradition, and a healthy suspicion of power and authority.” Two-thirds of a century on, almost every item on the list has been abandoned, from “independence and self-reliance” (40 per cent of people receive state handouts) to “a healthy suspicion of power and authority” – the reflex response now to almost any passing inconvenience is to demand the government “do something”, the cost to individual liberty be damned. American exceptionalism would have to be awfully exceptional to suffer a similar expansion of government and not witness, in enough of the populace, the same descent into dependency and fatalism. As Europe demonstrates, a determined state can change the character of a people in the space of a generation or two. Look at what the Great Society did to the black family and imagine it applied to the general population: That’s what happened in Britain…

George Will:

…What Friedrich Hayek called the “fatal conceit” — the idea that government can know the future’s possibilities and can and should control the future’s unfolding — is the left’s agenda. The left exists to enlarge the state’s supervision of life, narrowing individual choices in the name of collective goods. Hence the left’s hostility to markets. And to automobiles — people going wherever they want whenever they want.

Today’s “green left” is the old “red left” revised. Marx, a short-term pessimist but a long-term optimist, prophesied deepening class conflict, but thought that history’s violent dialectic would culminate in a revolution that would usher in material abundance and such spontaneous cooperation that the state would wither away.

The green left preaches pessimism: Ineluctable scarcities (of energy, food, animal habitats, humans’ living space) will require a perpetual regime of comprehensive rationing. The green left understands that the direct route to government control of almost everything is to stigmatize, as a planetary menace, something involved in almost everything — carbon….

It’s worth noting that alliances between “green” and “red” political parties are a very real phenomenon. The left-most mainstream parties in Sweden, Norway, Iceland, Denmark, and Finland formed the Nordic Green Left Alliance in 2004. Those parties are also joined in the European United Left / Nordic Green Left alliance in the European Parliament with The Spanish Communist Party, The French Communist Party, The Portuguese Communist Party, and The Communist Refoundation Party of Italy. For good measure, the Sinn Fein, the political arm of the terrorist Irish Republican Army, recently joined the EUL/NGL.

What are environmentalists and communists (and terrorists) doing together in political unions? Obviously, they share the same fundamental goals - repression of the individual in favor of supreme state power.

From Czech President Vaclev Klaus’ speech at Heatland’s climate change conference in NYC last week:

…I am the only speaker from a former communist country and I have to use this as a comparative — paradoxically — advantage. Each one of us has his or her experiences, prejudices and preferences. The ones that I have are — quite inevitably — connected with the fact that I have spent most of my life under the communist regime. A week ago, I gave a speech at an official gathering at the Prague Castle commemorating the 60th anniversary of the 1948 communist putsch in the former Czechoslovakia. One of the arguments of my speech there, quoted in all the leading newspapers in the country the next morning, went as follows: “Future dangers will not come from the same source. The ideology will be different. Its essence will, nevertheless, be identical — the attractive, pathetic, at first sight noble idea that transcends the individual in the name of the common good, and the enormous self-confidence on the side of its proponents about their right to sacrifice the man and his freedom in order to make this idea reality.” What I had in mind was, of course, environmentalism and its currently strongest version, climate alarmism….

…What frustrates me is the feeling that everything has already been said and published, that all rational arguments have been used, yet it still does not help. Global warming alarmism is marching on. We have to therefore concentrate (here and elsewhere) not only on adding new arguments to the already existing ones, but also on the winning of additional supporters of our views. The insurmountable problem as I see it lies in the political populism of its exponents and in their unwillingness to listen to arguments. They — in spite of their public roles — maximize their own private utility function where utility is not any public good but their own private good — power, prestige, carrier, income, etc. It is difficult to motivate them differently. The only way out is to make the domain of their power over our lives much more limited. But this will be a different discussion

…I am also afraid that the same people, imprisoned in the Malthusian tenets and in their own megalomaniac ambitions, want to regulate and constrain the demographic development, which is something only the totalitarian regimes have until now dared to think about or experiment with. Without resisting it we would find ourselves on the slippery “road to serfdom.” The freedom to have children without regulation and control is one of the undisputable human rights and we have to say very loudly that we do respect it and will do so in the future as well…

…What I see in Europe (and in the U.S. and other countries as well) is a powerful combination of irresponsibility, of wishful thinking, of implicit believing in some form of Malthusianism, of cynical approach of those who themselves are sufficiently well-off, together with the strong belief in the possibility of changing the economic nature of things through a radical political project.

This brings me to politics. As a politician who personally experienced communist central planning of all kinds of human activities, I feel obliged to bring back the already almost forgotten arguments used in the famous plan-versus-market debate in the 1930s in economic theory (between Mises and Hayek on the one side and Lange and Lerner on the other), the arguments we had been using for decades — till the moment of the fall of communism. Then they were quickly forgotten. The innocence with which climate alarmists and their fellow-travelers in politics and media now present and justify their ambitions to mastermind human society belongs to the same “fatal conceit.” To my great despair, this is not sufficiently challenged neither in the field of social sciences, nor in the field of climatology. Especially the social sciences are suspiciously silent…

…We have to restart the discussion about the very nature of government and about the relationship between the individual and society. Now it concerns the whole mankind, not just the citizens of one particular country. To discuss this means to look at the canonically structured theoretical discussion about socialism (or communism) and to learn the uncompromising lesson from the inevitable collapse of communism 18 years ago. It is not about climatology. It is about freedom. This should be the main message of our conference.

Nice references to Hayek’s two masterpieces (The Fatal Conceit and The Road to Serfdom). He also makes an implicit and apt reference to Public Choice Theory.

From the WSJ:

 …One lesson of the inflationary 1970s: A country that will not accept the possibility of a small recession will end up having a big one when the politicians at last respond to the public’s complaints about inflation. Instead of paying the relatively small cost of a possible recession, the public pays the much larger cost of sustained inflation and a deeper recession. And enduring the deeper recession is the only way to convince the public that the Fed has at last decided to slow inflation….

Could have come right from Hayek’s mouth.

George Reisman is Professor Emeritus of Economics at Pepperdine University. His NYU economics PhD thesis advisor was Ludwig von Mises, the same economist under whom Friedrich Hayek studied under in Vienna in the 1930s.

From Reisman’s blog:

Here’s the essential common core of hatred and destruction in the doctrines of Communism, Nazism, and Environmentalism. Only the concretes differ, not the fundamental principle of hatred for human life and happiness.

Communism: The pursuit of individual self-interest causes monopolies, depressions, and exploitation of workers by capitalists. It must be replaced by self-sacrifice for the benefit of the working class and the Socialist State. Capitalists and landowners must be exterminated for the benefit of the proletariat.a

Nazism: The pursuit of individual self-interest causes racial impurity, national decline, and exploitation of German workers by Jewish capitalists. It must be replaced by self-sacrifice for the good of the Aryan master race and the National Socialist State. Jews, Gypsies, and Slavs must be exterminated for the benefit of the German Nation.

Environmentalism: The pursuit of individual self-interest causes global warming, acid rain, and ozone depletion. It must be replaced by self-sacrifice for the good of other species—our “fellow biota”—and for the good of the planet, under the auspices of international treaties and a nascent Global Socialist State: the UN. Most of the human race must be exterminated for the benefit of exploited species and the planet. (This is what the environmentalist “extremists” already openly say. The “moderates” merely want to reduce carbon dioxide emissions by 90 percent and thereby reduce the American standard of living to that of a third world country, with a third world country’s infant mortality and life expectancy.)

On a related note, Market Correction carried this letter to the Boston Globe last summer:

To the Editor: 

Jeff Jacoby courageously denounces the hysterical groupthink so prominent in the crusade against global warming (”Hot tempers on global warming,” August 15).

I am a global-warming skeptic - not of the science of climate change (for I have no expertise to judge it), but a skeptic of combating climate change with increased government power. Al Gore, Robert Kennedy, Jr., and too many others dismiss the downside of curtailing capitalism in order to reduce emissions of greenhouse gases. They write and speak as if the material prosperity that capitalism brings is either not threatened by increased government power, or is of only small importance when compared to the threat of global warming. Truly reasonable people are, and ought to be, skeptical of each of these dogmas.

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University

We’ve written on the commie-greenie convergence before: here, here, here, here.

If you have an hour and want to learn more about the Austrian School of Economics (Menger, Hayek, von Mises), listen here.

Last September AEI Fellow Ayaan Hirsi Ali participated in a New Yorker panel called Islam and the West.

alivideo.JPG

In her opening statement she invokes Hayek and his definition of freedom.