Image Source Depiction of a pig in a military suit with a quote from George Orwell's Animal Farm, a literary analogy cautioning the public on the dangerous ramifications of central planning and totalitarianism.
Overview
In the early 1940s, Austrian economist Friedrich Hayek published the book The Road to Serfdom, providing readers with perspective on the ideas of socialism, central planning, and totalitarianism in the height of the Nazi regime in Germany as well as the Soviet Union in Northern Europe. Hayek alerts against the socialist trends seen around the world including in Britain and the United States, believing that it will ultimately lead to the loss of freedom in said regions.
Trading Individual Liberty for Fiscal Freedom
The ideas of the socialist party were inciting to many who lived during the time of Hayek, and we still see the influence of such ideologies in our societies today. The promise of economic equality and fiscal freedom for all is an ideal not many can disagree with... however, the means of attaining this end are what Hayek contends with in his writings. Proclaiming that the burden of such central economic policies would not be worth bearing at the cost of individual liberty.
A prominent idea in the reductionist version of this book can be summed up with a quote from Hayek laying within his "Two kinds of security" section: "It is planning for security of the second kind which has such an insidious effect on liberty. It is planning designed to protect individuals or groups against diminutions of their incomes". The security referred to here is the state structured measures that in turn will inhibit the liberty of others within society. He is noting that one is unable to live in a society in which economic liberty is guaranteed by the government, as that will infringe upon the personal liberty of the people. While personal and economic liberty are certainly intertwined... with more resources, one is able to live a life of luxury having more options to choose from when it comes to spending leisure time, education, housing, etc. However, if that money or financial security is state sponsored, it does not become equivalent to wealth. The reason for this lies in the fact that resources allocated in this manner would decrease competition, and thus there would be fewer options for the individual.
Here, I agree with Hayek, such central economic regulation has dire consequences, as it places power in the hands of few, gifting them the ability to make decisions with the businesses and livelihoods of individuals. Market forces would be a much better mediator for economic activity... while it does not promise prosperity for the whole society, it gives individuals power and creates a needed divide between the government policy and the economic wellbeing of its citizens.
The Slippery Slope Planned Economics to Planned Thinking
Hayek also alludes to the fact that it is inevitable to have a centralized economy without eventually dissenting into a totalitarian regime. Providing a step by step process for a powerful leader to usurp the throne, Hayek analyzes each progression in such a rise to power. This begins with an outside force such as war forcing national planning, the government then institutes a plan promising a utopia or a fix to all the problems that are being experienced. The issue though is that people are unable to agree, this is where the dissent begins, as the government implements policy to force agreement to control the populous. Enforcement of wages and punishment for diversity of though ensues -- these being ideas that initially come to mind for many when thinking of dictatorial regimes.
The Importance of Critical Analysis
The objective in Heyek writing this section was not just to provide an outline for how such states begin, but rather to encourage the average citizen to be able to think critically in such situations. One must be entirely aware of the circumstances and proposed government solutions, otherwise this downward spiral can start. Hayek advocates for education as a means to prevent tyranny, but personally I believe in todays world education is not entirely enough. Even with all the facets of a modern university education, a student may be able to graduate without the cultivating the essential skill of being able to think independently from others. This is not so much a domain of knowledge, but rather a tool or a competency that cannot just be taught through memorization or examination. Critical thinking requires analysis, it requires abstraction of ideas, it requires a dedication to the pursuit of truth in encounters of the unknown. Critical thinking is something that I hope to further develop, not only in my time in the educational system, but throughout the entirety of my life. Not only will it allow me to seek and find truth, but it may prevent me from falling prey to ideologies that have been exhibited in the past. The ideologies that Hayek cautions against.
Friedrich, A. H. (2005). The road to serfdom. Institute of Economic Affairs.