Tag: F.A. Hayek

Categories
free trade & free markets ideological culture individual achievement

A True Revolutionary

The key to success in business? Profitably serve as wide a customer base as possible. Mass production is the lynchpin. And it’s also at the heart of why many intellectuals hate capitalism: Serving the mass of mankind is “beneath” them. They have a higher calling. They serve Justice, or The Truth. Or, say, Beauty.

This curious by-​product of capitalism is what Austrian-​American economist Ludwig von Mises called “The Anti-​Capitalist Mentality”: The tendency of intellectuals to react against the very instrument that serves the common man even while they ballyhoo the “cause” of the common man.

Mises and others focused on intellectuals’ envy as the reason for their strange, seemingly inexplicable “turn.” Why bite the hand that feeds so many? Because that hand doesn’t reward intellectuals enough!

F.A. Hayek added another reason: Incomprehension. How markets work is beyond the designs of any single mind. Intellectuals tend to be prejudiced in favor of singular minds. Theirs, at least.

The great revelation at the end of the last century followed from that: Command-​and-​control societies must fail. Regardless, though, “planning” does happen in a free society. Piecemeal. You plan. I plan. And entrepreneurs plan to serve us both. 

And entrepreneurs of genius successfully serve millions, make a lot of money for all concerned, and find new ways to make life easier, more enjoyable.

Steve Jobs was such a man. He died yesterday, age 56. As head of Apple and Pixar, he changed society by serving the masses.

And even intellectuals approved.

A revolutionary, indeed.

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture

Prize Optimist

The Manhattan Institute for Policy Research has awarded its annual Friedrich Hayek Lecture and Book Prize to Matt Ridley, for his book The Rational Optimist.

I wrote about the book last July, focusing on the title theme. The course of the last few hundred years gives us plenty of reasons for an upbeat long-​term view, in part because a few revolutions have occurred over that time, giving us plenty of, well, plenty.

Ridley, a popular science writer, actually takes a longer view than that. He identifies the source of most progress in trade. He starts the book discussing human prehistory, noting the evidence that Cro-​Magnon people traded widely, while Neanderthals did not. This probably explains why we descend from the former, not the latter. The traders won out, out-​producing (out-surviving) the more “socialistic” folk with bigger brains.

The ability to trade gave our ancestors a huge comparative advantage — a key economic principle that Ridley ably explains.

Ridley and Hayek share a general outlook, so the award is fitting. It’s also fitting to learn of it during “Hayek Week” — what with the new, “definitive” edition of F.A. Hayek’s classic Constitution of Liberty out, receiving reviews in major papers.

Here’s hoping Ridley continues to echo Hayek’s success in the marketplace of ideas. His recent Wall Street Journal op-​ed cheering on “the cheapeners and cost-​cutters” (rather than the usual ballyhooed inventors) suggests that he will do just that.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Road to Number One

Good news and bad news.

The good news: F.A. Hayek’s Road to Serfdom, an exploration of the fallacies of socialism and the very real political hazards of bureaucratic, centralized planning, has been riding high on Amazon.com’s bestseller list. It even made it to No. 1 on the list, and is No. 6 as I write.

Pretty amazing for a reprint of a 66-​year-​old treatise on how economic controls foster tyranny.

Economist Hayek’s most accessible tome first hit it big in the 1940s, especially after Reader’s Digest excerpted it. The book resurges in popularity now thanks to something a bit different than a Digest excerpt. Glenn Beck featured it on his controversial talk show, praising it in glowing terms.

But there’s a deeper reason for its comeback, the reason Beck turned to in the first place: Its insights seem particularly relevant in an era of spastic expansion of government power. 

That’s the bad news.

Gene Healey, at Cato Institute’s blog, suggests that “the underlying reason for the sustained interest in Hayek’s book is that it taps into a profound dissatisfaction in the public mind with the machinations of its government. Both Presidents Bush and Obama have presided over huge growth in the size of the federal government.… Things seem out of control.”

Maybe, with Hayek’s help, we can hang a U‑ee and reverse course.

This is Common Sense. I’m Paul Jacob.

Categories
media and media people political challengers too much government

The Story of Our Time

The election season is heating up and challengers are making headway. So, here comes the name-​calling by media hot-​heads. The boiling point was quickly reached when Keith Olbermann called a Tea Party candidate a liar and a traitor, declaring that the challenger should be arrested and jailed.

This is, sadly, not unexpected.

In the 20th century, what was once considered radical and extremist became mainstream. The common sense wisdom of America’s founders was thrown out for imported philosophies like socialism and “dirigisme.” The leading intellectuals at the start of the century, many educated in Germany, took home doctrines of limitless government and added a can-​do American spirit, creating Progressivism and then the New Deal.

Big Government went from the thing most feared to Our Friend.

Then, in England, a socialist noted that this alleged Big Brother could be awfully cruel, the opposite of fraternal. An Austrian economist explained how even well-​intentioned government, if unlimited by a rule of law, could send us all down the road to serfdom. A backlash began.

Though increasing numbers of intelligent, concerned citizens began to doubt and then decry the growth of government, government continued to grow. And establishment opinion called supporters of limited government “extremists” and “radicals.”

Now, as government spending lurches beyond all sanity, it’s the establishment that appears extremist.

Expect a few skirling kettles to boil over this season. And then boil dry — and empty. Like the establishment’s big government philosophy itself.

This is Common Sense. I’m Paul Jacob.