141 of 152 people found the following review helpful
This review is from: The Road to Serfdom (Routledge Classics) (Paperback)
The thesis of this book is quite a simple one. No one person or group of people can possibly have enough knowledge to effectively run an economy. No-one is able to collect and make use of sufficient information even about the past, let alone the present. Any attempt, therefore, to plan the future is bound to fail. Hayek goes on to postulate that this failure must result in the rule of a dictator as a last desperate fallback to take command of the spiralling chaos. The experience he had in mind, of course, was Nazi Germany whose fate he saw as ineluctable from the birth of the German welfare state in the late 19th Century. The command economy signifies the submission of the individual to the dictates of the planners in whose hands is concentrated the power that was once dispersed among many industrialists. The individual is thus reduced to the condition of the serf who ends up without even the power to sell his labour to a higher bidder.
This is a defence of private property, and the responsibility of the individual for his own fate whatever it may be. It is not libertarian; it does not wish to whittle down the power of the state to a bare minimum. However, aside from the legislation of basic standards, it argues for the exclusion of centralised power from the quick of economic life and the enabling of choice even to the poorest. It is a fundamental text of what was once called liberalism, and is as relevant today as it ever was.