The Road to Serfdom

Fredrick Hayek is perhaps the most underrated and at the same time, most brilliant political and economic thinker of our age. While hugely regarded amongst academic circles, he is relatively unheard of within the wider public at large. This is a shame, for there is perhaps no man who has understood the science that is economics better than Hayek.

His most famous work, The Road to Serfdom, is his cautioning against the dangers of Socialism, and despite being released in 1944, remains shockingly poignant to this very day. Hayek’s central thesis is as follows; while the ideals of socialism (Justice and Equality) are honourably, they cannot be achieved through collectivisation in a democratic manner. Hayek views Socialism and democracy, the freedom which we love, as incompatible. Thus it is a choice between liberty and a form of slavery (serfdom). This is because, in order for Socialism to work, i.e. in order to remove economic considerations from our lives, everything must be planned on a huge scale. In order for planning of this magnitude to work, a central body must be established, which will be required to determine how people will act. The only way to accurately do this, is to control the people, and force them to act in a way that is for ‘the Greater Good’, even if this is against their wishes. This would give the Planning Authority a huge amount of control, far greater than even the most powerful of capitalists, and thus render the rest of the population in a form of bondage or ‘Serfdom’.

Hayek’s argument is powerful, and while one may disagree with certain aspects, it is hard to dismiss his line of reasoning, particularly today, given the benefit of history. But rather than stopping to rest on his laurels, Hayek instead attacks Socialism again, blaming it for the rise of Nazism. While most see the Treaty of Versailles combined with the 1929 Wall Street Crash as leading  to the ascension of Hitler, Hayek states that while these were important, it was the framework established by the Socialist decades previously which set the framework for the Nazi State. Seeking the common good of all, the Socialist went about creating a nation and form of government which could allow them to achieve their goals. However, they were unable to cross the final hurdle, due to their unwillingness to revert to an autocratic and tyrannical regime. This led to many become disenfranchised, particularly amongst the middle class, who flocked to the new up and coming party, which promised a stronger government, the National Socialists or Nazis as they were more commonly known. For Socialism is in itself profoundly Nationalist, says Hayek, and therefore we cannot view Hitlers rise to power as mere unfortunate chance but instead must see it as a direct result of a Socialist country.

In recent times, Hayek has been adopted by much of the libertarian movement, as champion of their cause. This is perhaps an injustice to the man. While Hayek was opposed to an oversized government, he considered himself a liberal, and did not wish to dissolve with government in its entirety. Instead he argued for a simple cost benefits analysis, were the social costs imposed greater than the social benefits achieved by greater government regulation? Hayek was chiefly concerned with the prevention of the rise of a totalitarian state which is why he so often argued against government. However, to credit him with formation of the libertarian movement in the United States today is an injustice to the man.

The Road to Serfdom remains as important today as it was when it was first published. With many unhappy with unregulated capitalism and its role in the financial crisis, Socialism has once again become an alternative that is becoming increasingly popular. However, as Hayek would argue; that way lies chaos. What is instead required is greater regulation and tighter control of Wall Street and banks. While Capitalism can leave many unhappy, it remains the only system by which we can preserve our freedom. This is what Hayek believed and this is why he remains so influential today