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Hayek Theories Book Review

Frederich a. Hayek, "The Road to Serfdom" The Road to Serfdom is a popular book that was written by one of the so-called Austrian Economists that argues that societies try to create systems that ensure some level of prosperity for their citizens. Governments do this by redistributing resources through taxation and other programs. While this might seem to be a good thing to many, Hayek argues that centralized planning of economic affairs can lead to tyranny. He argues that freedom in economic affairs is what really ensures prosperity for all and centralized planning has unintended consequences that restrict individual liberty.

The struggle between collectivism and individualism is a debate that has been central to many intellectuals throughout the course of history. Even in the world today, there exists a mix of different nations that lean one way or the other. It is easy to point to the United States as proof of how individualism, in which the U.S. is the world leader in, and use this for a justification for Hayek's arguments. The free market mechanisms and deregulation of industries have undoubtedly led to periods of vast economic prosperity in the U.S.

However, it is also possible to point to countries that are socialistic and utilize collect policies...

For example, the Scandinavian countries are some of the most advanced in the world. They lead the world rankings in categories such as education and patents per capita. They also have a high standard of living relative to income and material possessions.
There are also examples of countries that have mixed policies. For example, China is a communist nation that has also implemented many free market tools in their economy. The government plays a large role in central planning, however they also open up many sectors of the economy to free market enterprise. Although on the aggregate level China is still relatively poor when comparing indicators such as income per capita, the country's growth rate has been phenomenal for decades. China now represents the largest economy in the world by some measures and has brought millions of people out of poverty through their policies and the country's development. Furthermore, China is developing infrastructure that will ensure its current prosperity well into the future -- an investment in public funds.

My thoughts on Hayek is that although his arguments may seem reasonable in many cases, there is much evidence in the world that contradicts his ideas.…

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