Jacob T. Levy considers the warning about authoritarian solutions to societal problems given by Friedrich A. Hayek in The Road to Serfdom and shows just how little we heeded his concerns:
It is well-known that the classical liberal economist F.A. Hayek dedicated The Road to Serfdom to “socialists of all parties”, and wrote the book “as a warning to the socialist intelligentsia of England.” I suspect we now understate the importance of these facts. After decades of the Cold War and self-conscious conservative-libertarian “fusionism” in both the U.S. and Britain, what sticks in our memory of The Road to Serfdom is its defense of liberal open markets against economic planning and regulation of the sort advocated on the left. That is of course how it was wielded in the post-2008 surge in interest in it, in the wake of the financial crisis and the subsequent bailouts and stimulus packages: as a weapon of the right.
But if Hayek’s argument characterized socialist planning and regulation as a slippery slope, the slope did not only slope down toward the left. Fascist Italy and Germany figure even more prominently than the USSR in the book’s image of the despotism being risked:
It is necessary now to state the unpalatable truth that it is Germany whose fate we are now in some danger of repeating … students of the current of ideas can hardly fail to see that there is more than a superficial similarity between the trend of thought in Germany during and after [World War I] and the present current of ideas in the democracies … And at least nine out of every ten of the lessons which our most vociferous reformers are so anxious we should learn from this war are precisely lessons which the Germans did learn from the last war and which have done so much to produce the Nazi system … [A]t an interval of fifteen to twenty-five years we seem to follow the example of Germany.
In the face of resurgent right-wing populist and nationalist authoritarianism in the world, it is worth reconsidering the legacy of The Road to Serfdom and of Hayek’s work to bolster liberalism.
Hayek warned of centralizing and authoritarian urges of both the left and the right, but it’s in the “permanent” government — the civil servants who remain in office regardless of electoral outcomes — that much of the danger to individual liberty lies:
Throughout Hayek is concerned for constitutional parliamentary government and the rule of law, and their protection against arbitrary government. The idea that freedom requires clear and general rules of conduct anonymously applicable to all — that government run by ad hoc edict is oppressive — was to be the major theme of his subsequent works in political theory, The Constitution of Liberty and Law, Legislation, and Liberty; but it is central to the argument of Road to Serfdom as well.
In the preface to the 1956 edition, Hayek described the postwar Labour government as having created a bureaucratic “despotism exercised by a thoroughly conscientious and honest bureaucracy for what they sincerely believe is the good of the country. But it is nevertheless an arbitrary government, in practice free from parliamentary control; and its machinery would be as effective for any other than the beneficent purposes for which it is now used.”
Here one hears a predecessor of the widespread classical liberal “we told you so” after the election, blaming the Obama administration for increasing the presidential power that the Trump administration would now inherit. But it is worth emphasizing that Hayek still called the purposes pursued by the left-wing bureaucratic state “beneficent”.
The tone Hayek adopts here is not the schadenfreude of contemporary whataboutism. Now that “hot socialism is probably a thing of the past” (hardly what one would expect Hayek to say were he the determinist caricature sometimes embraced by fans as well as critics), the welfare state calls for “careful sorting out” in the pursuit of its “practical and laudable” aims. He calls for the welfare state and social insurance to be implemented through general rules and fiscal policy rather than administrative coercion, nationalization, and direct economic planning, because the latter instruments “are not compatible with the preservation of a free society.”
H/T to Tamara Keel for the link.
