He writes, "The postulate of material equality would be a natural starting point only if it were a necessary circumstance that the shares of the different individuals or groups were in such a manner determined by deliberate human decision" (p. 81). Demand for equality or material redistribution can be based only on the belief that someone's decision has created the inequality so. Obviously, by assuming that the social does not exist and that the market is impersonal, there is no decision to blame for inequality. Further, he operates from the assumption that any starting point of equality is impossible to achieve due to the practical nightmare it would entail to redistribute wealth and resources. Another assumption he makes is that impersonality "brings about a greater satisfaction of human desires than any deliberate human organization could achieve" (p. 63). It is not clear on what history he bases this claim on the market's unintentional benevolence. Yet it clearly assumes that "nature" is a better means to achieve well-being than institutionalized human morality or social programs. Another assumption he makes is that we have discovered this market procedure and discerned that merit is not part of its assumptions: "these values which their services will have to their fellows will often have no relations to their individual merits or needs" (p. 72). This connection between deserving and rewards is alleged, not real. In his view, value is determined by worth to the receiver alone. The assumption is that real value cannot be known "except in so far as the market tells him" (p. 77). You cannot construct value -- i.e., know what just remuneration is -- without knowing the market. The important thing for Hayek is that remuneration is based on accident (luck), but that "the individual is to be allowed to decide what to do" (p. 81). In the end, Hayek proposes a view that excludes social justice from discussions of capitalism. Since the free market is the most desirable form of social order, it should be left alone to work itself out without social (or socialist) interference. The spontaneous ordering of haphazard outcomes among free individuals should remain free of meddling. If inequality results, it is neither good nor bad, only neutral. The only...
That would mean governmental control, which he opposes to a preferable free system. Redistribution cannot be done with predictable outcomes.Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
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