From The Road to Serfdom, how and why does F.A. Hayek denounce all forms of planning or collectivism? What is so superior to laissez faire or capitalism and why?
Do you agree with Hayek¡¦s thesis? If so, yes; if not, why not?
Collectivism¡¦s main argument is that society should not be controlled by people who are irresponsible. Hayek counters that point by stating that collectivism is nothing more than totalitarian in which individual freedoms are lost. He also states that the welfare and happiness of the society cannot be satisfied by a single plan (Hayek 63-64). This is especially true in countries that are very diverse in their people¡¦s education and culture. Collectivism also has the dilemma of ¡§who plans whom, who directs and dominates whom, who assigns to other people their station in life, and who is to have his due allotted by others? These become necessarily the central issues to be decided solely by the supreme power.¡¨ (Hayek 119). Typically, it is the bottom of society that makes up this supreme power. Hayek¡¦s believes that since the bottom of society typically has low values and moral standards, they can reach out to the greatest number of people for their message. Another way that this group can get power is the belief that the gullible people will follow any message they convey and that people will follow a message of hate rather than any positive message (152-153). A perfect example of this would be the Nazis in Germany where Hitler relied upon his message of nationalism and his hatred of Jews.
Hayek properly lays out the foundation to support his reasoning for supporting capitalism. He points out that capitalism cannot succeed without a proper legal framework. With legal laws and enforcement in force, classical liberalism believes that capitalism and its forces of competition will coordinate human efforts best rather than relying on a total laissez fare policy (Hayek 41). Other factors needed for capitalism to succeed are the organization of ¡§money, markets, and channels of information¡¨ (43). Those three factors are the basis for competition which is most effective in determining allocation of resources and generating the maximum amount of marginal utility. When prices and/or output are controlled, the central planners are interfering with free markets which distort the true view of the marketplace.
In addition, Hayek believes that ...
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...n explosion within the last 2 centuries. Hayek also states that with a working model of capitalism, humans will not procreate as much due to the lack of the old custom of producing many children as possible to help them be sufficient at old age (Hayek 129). It is this type of example of cultural evolution that helps to create the modern civilization.
Finally, Hayek addresses how humans have been able to pass down traditions and values to the next generation. Sometimes, these traditions and values go against instinct and reasoning. This is where the role of religion comes into play. Hayek believes ¡§¡Kthat beneficial traditions have been preserved and transmitted at least as long enough to enable those groups following them to grow, and to have the opportunity to spread by natural or cultural selection.¡¨ (136). By following these morals and traditions by using religion, people can understand and follow them which will enforce the development of civilization and therefore capitalism through the process of group selection (136-137). We can see how after only after 3 to 4 generations, socialism is for the most part dead in the world showing how capitalism has survived and thrived.
Even at the age of 89, Hayek was still publishing. In his book The Fatal Conceit, he laid out some profound insights to explain the intellectual’s attraction to socialism and then chose to refute the basis for their beliefs.
Collectivism is any philosophic, political, religious, economic, or social outlook that emphasizes the interdependence of every human. Collectivism is a basic cultural element that exists as the reverse of individualism in human nature (in the same way high context culture exists as the reverse of low cont...
The decline of indentured servitude and the rise of chattel slavery were caused by economic factors of the English settlers in the late 17th century. Colonists continually tried to allure laborers to the colony. The head right system was to give the indentured servant a method of becoming independent after a number of years of service. Colonists chiefly relied on Indentured Servitude, in order to facilitate their need for labor. The decreasing population combined with a need for a labor force, led colonists to believe that African slaves were the most efficient way to acquire a labor force that would satisfy their needs.
The word collectivism often makes people cringe. Overall, there is a general fear of not being able to make personal decisions in America. According to the Merriam-Webster Dictionary, collectivism can be defined as; emphasis on collective rather than individual action or identity (“Collectivism”). In Anthem, Ayn Rand describes an extreme collectivist society. Although Anthem’s society seems extremely surreal, aspects of its collectivist society closely mirror today’s society.
...ne; it is welded into my personality that I need to have some power and authority in order to be content. I would, therefore, resent being regarded as economically equal to others in all situations, because that would mean that regardless of how hard I worked and how successful I became at my job, I would be, in the eyes of the government, equal to all others, even those who worked at the least of their capacities and showed no resolve whatsoever to make something greater of themselves. Therefore, after studying what it means to live in a command economy, I have decided that life spent as a citizen in a centrally planned economy would be predominantly disadvantageous, with the sparse sprinkling of advantages few and distant and clouded from being fully beneficial by the supremacy of a government that exercises control even into the personal lives of each individual.
... collectivism holds many different meanings pertaining to many different people and how they feel about both. To this day many people don’t know what they fall under because it has come confusing as the world has changed. The more we evolve the more we need the strength of one another for us to be able to be individuals and hold the title of individualism.
It is human nature to see those who are different and group them into distinct categories. The distinction of Individualism versus Collectivism is one that is currently being studied extensively. On one side, individualism sees individuals as the fundamental unit of a society. Individuals are supposed to be unique, independent, and most importantly, willing to put their own interests above all others. On the other hand, collectivism views the basic building block of society as social groups, stressing the interpersonal bonds between people. Collectivist values dictate that group goals and values have higher precedence than an individual’s. Due to the seemingly polar opposite nature of these ideologies, it is inevitable that they will be compared to see which is more beneficial to the country and its people. Some might point to the success of the US, an extremely individualistic country, in support of individualistic values. They will point to the freedom of choice and diversity that individualism boasts of. Others stress the flaws of the US in response, and while both sides do have their truths, the costs that come with individualistic values are too great to be ignored. Highly individualistic attitudes have caused many large scale problems which have long been identified as difficult to resolve issues. These problems include, but are not limited to, promoting aggressive acts, creating an obsession with social power, and allowing a system of injustice to be born.
The American Revolution, as a hostile to duty development, focused to Americans' right side to control their own property. In the eighteenth century "property" included other people.
... an individual, he has his own ideas, plans, thoughts, and is his own being and is looked down upon because of it. This book shows us that Collectivist societies do not work and they lead to brainless, incompetent people who have no meaning in life. The book's theme of individuality and identity show the downfalls of Collectivism vividly and very well. Throughout the book Anthem, the theme of individuality and one's identity, shown through Equality's own ideas, own love, and own ego, are vital to show Collectivism's faults.
The two ideological principles that I will be discussing in this essay are Conservatism and the Socialist principle. Based on the books I have chosen, the views of each of these authors, their explanation towards society and how these principles modify and disrupt our economic system, the way we live and the choices we make. In their case study; Mark Levin’s “Liberty and Tyranny” bases his ideas and views towards the dysfunction of the system with a Conservative view and G.A. Cohen’s book “Why not Socialism?” giving a better way of organization for our system and harmony for society. Mark Levin centers his research and ideas based on the influence of philosophers, among these, Adam Smith and John Locke to name a few. The Conservative idea is based on the right of human beings, the right to live freely, and God’s given natural rights.
Systems similar to serfdom are found as far back as 300 AD when the Roman Empire dealt with labor shortages (Mackay, 2004). Major landowners began to rely more on freemen to work as tenant farmers. As stated by Mackay, “because the tax system implemented by Diocletian assessed taxes based on both land and the inhabitants of that land, it became administratively inconvenient for peasants to leave the land where they were counted in the census. In 332 AD Emperor Constantine issued legislation that greatly restricted the rights of the [tenants] and tied them to the land.” The first traces of the establishment of serfdom in Russian society were found in the 11th century in the legal document Russkaya Pravda of the ancestral Russian society Kievan
The essential nature of capitalism is social harmony through the pursuit of self interest. Under capitalism, the individuals pursuit of his own economic self interest simultaneously benefits the economic self interest of all others. In allowing each individual to act unhampered by government regulations, capitalism causes inventions, prosperity and ideas to be created in the most efficient manner possible which ultimately raises the standard of living, increasing opportunities and makes available an ever growing supply of products for everyone.
Karl Marx, in the Capital, developed his critique of capitalism by analyzing its characteristics and its development throughout history. The critique contains Marx’s most developed economic analysis and philosophical insight. Although it was written in 1850s, its values still serve an important purpose in the globalized world and maintains extremely relevant in the twenty-first century.
If one looks at liberty and individual freedom, it is evident that command economies tend to oppress their citizens. Therefore, socialism, which allows for basic needs to be met and personal freedoms to be upheld, is the best economic system for all of a country’s citizens. Market economies, as a whole, inherently and inevitably lead to poverty and a large class disparity. In a capitalist society, the ones who supply labor, the ones who work the hardest, are the ones who are paid the least. The owners, who are already rich, receive most of the profit and accumulate large masses of wealth.
Capitalism is an economic system in which the production and distribution are privately owned, the government involvement is minimal,and there is free enterprise. In Capitalism, the means of production are privately owned and operated for profit in a competitive market. Also the economic investment, ownership and profits are all owned by individuals. Under capitalism the state is separated from the economy, which means that the government has no role in business. In other words, everyone works for themselves. The market forces in a capitalist country runs by supply and demand which it determines the price and later on it turns into profits. Supply is the quantity of goods and services a business is willing to sell, while Demand is the quantity of goods and services consumers are willing to buy. Therefore, Capitalism is the best economic system because it rewards the ones that work hard and since the government does not control trade, there is a large variety of goods and creates options for consumers to fit their personal needs.