Road to serfdom under the topic Economic Control and Totalitarianism

Hayek's Views on Economic Control and Totalitarianism


Hayek brings to life several issues of economic planning and the inextricability of dictatorial power in his book, Road to Serfdom, under the title Economic Control and Totalitarianism. He believes it is incorrect to believe that economic restrictions can be isolated from political controls. He goes on to say that things like career alternatives influence and decide economic controls. Hayek believes that there is a link between political and economic freedom based on his beliefs. This essay will investigate some of his views, which will lead to his overall thoughts on economic control and totalitarianism.  Given Hayek\u2019s quest to develop a central plan of full-scale totalitarianism, he tries to develop a socialism perspective on economies. He explains that all tasks, especially ones that concern economic processes need dictatorial rule. He expounds on his ideas on planning and democracy whereby he states that there is power in a planned system. In this cases, Hayek is basing is ideas on his experiences on the economies of Germany and Russia whereby at the time, both countries were led by leaders who were seen as dictatorial. His idea on a central committee or single dictator seems to point towards the idea of dictatorial leaders just as was the case in government of Germany and Russia at the time. He manages to drive his ideas home through pointing out the efficiency and decisiveness of a central leadership and flaws of a democratic system.


The Inefficiency of Authoritarian Leadership to Economic Plans


Moreover, Hayek explains the inefficiency of authoritarian leadership to economic plans. He states and explains political inability that it directly affects economic controls. Hayek believes that the inability of an administrative or authoritative system will mean a total absence of economic controls. Because of this, he believes that political controls and economic controls are inseparable and interrelated hence the need for a dictatorial kind of political leadership.


The Importance of Economic Education


As a resolution to better economic controls, Hayek mentions the importance of economic education. He states that the modern society is not giving the idea of economic education the attention it deserves. He states that there is a need for economics instructors to exercise an important skill of contextualizing economic interest into concepts common with the current professions. Through that, he states that people will be able to deal with economic strategies and hence better economic controls. Moreover, he acknowledges the fact that money is a major driver of every economy. He states that money is a significant instrument of freedom through which people can access wealth. Hayek also mentions the importance of pervasiveness in economic control. He describes the difference between capitalism and socialism. He believes that differentiating the two will enable people to make better life choices.


The Role of Social Factors and Censorships in Political and Economic Control


Regarding the issue of the rule of law, Hayek acknowledges the difference between government impositions on people and people\u2019s individual choices. He makes a reference to Karl Marx and Rousseau with an aim helping people to understand where two draw the line regarding the decision on wrong or right. His major idea regarding this issue is that social factors and censorship play significant roles in political and economic control. He further states that modern governments have limited liberty on economic decisions in a given country as compared to past administrations or governments.


Hayek's Views on Central Planning and Socialism


Economists have regarded Hayek\u2019s element of central planning as utopian while socialists have referred to it as an important aspect into economic control. The control is however limited to unions and wages. The government through central planning can regulate the wages and control the amount of people under a given profession through management of the unions. Through such controls, governments get to control the communities and provide their countries with the necessary economic provisions. This is where Hayek indicates the application of dictatorial leadership. According to him, dictatorship could lead to better economic control.


The Evolution of Socialism and the Need for Engagement


Hayek\u2019s central ideas revolve around the relationship between political and economic control to various aspects of socialism. He notes that socialism was taking a much different direction in the modern society as compared to times such as the early 20th century. He states that socialism has become egalitarian and those socialists no longer believe in a system that is technically superior. Because of this, Hayek believes that the society no longer has the ability to set up equitable and just distribution of wealth. This system is therefore being discredited and according to socialists Hayek predicted the rise of the New left and the current American administration. To remedy this, Hayek had called for more engagement from advocates of socialism as they have the power to create a superior and functional socialism.


Modern Mechanisms of Control


Hayek\u2019s proposed modern modes of control on socialism have continued to gain more relevance through time. His idea was that there is a need for much subjugation and control to ensure economic and political control, which by extension will lead to better socialism. He believed in control as the best form of management. Today, the society has witnessed various mechanisms of control for example the regulatory bodies, the NSA surveillance, and the extensive executive agencies that maintain and impose rules and regulations. These measures seem to be in line with Hayek\u2019s ideas on economic control and total totalitarianism.


Conclusion


This chapter of Hayek\u2019s book has been regarded as valuable given the idea that it shades light on the saddening reality of the current political climate. It makes the reader ponder on his or her experiences regarding the totalitarian and dictatorial administration. The society today is extensively affected by cases of governments or leaders intruding into trade and other social incentives in order to gain advantage over others. People slowly understand their plight and perhaps a way to remedy their conditions. As a way of collective conformation and dealing, people call for equity in the enforcement of the control. Hayek believes that through exercising equity, equity will begin to evolve. Furthermore, the society today is characterized by a large percentage of people who are rational on decisions of what to and what no to do. These people respond to incentives around them as these incentives dictate their choices. This society has seen a gradual rise in the control of incentives by administrative bodies or governments. Hayek refers to this as a factor into a better social, economic, and political society. People\u2019s options are slowly becoming limited as the authorities continue to tighten their control on social, economic, and political processes. People are unconsciously being manipulated by organizations such as regulatory bodies such as banks, police, and other social programs such as education.

Bibliography

Farrant, Andrew, and Edward McPhail. “Hayek, Samuelson, and the logic of the mixed economy?.” Journal of Economic Behavior & Organization 69, no. 1 (2009): 5-16.

Hayek, Friedrich August, and Bruce Caldwell. The road to serfdom: Text and documents: The definitive edition. Routledge, 2014.

Hayek, Friedrich August. Law, legislation and liberty: a new statement of the liberal principles of justice and political economy. Routledge, 2012.

Steele, G. The Economics of Friedrich Hayek. Springer, 2007.

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