Hayek3 - cis225 hayek3 February 2006 p.1 Does Socialism...

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cis225: hayek3 February 2006, p.1 Does Socialism Lead to Dictatorship? -- C Chapter 6: “Planning and the Rule of Law” 1 The Rule of Law: the government in all its actions should be bound by rules fixed and announced beforehand. 2 These are rules which make it possible to foresee: 3 how the authority will use its coercive powers in given circumstances, and 4 to plan one’s individual affairs on the basis of this knowledge. 5 For economic planning under the rule of law: 6 The government should confine itself to fixing rules determining the conditions under which the available resources may be used, leaving to the individuals the decision for what ends they are to be used. 7 But: under central economic planning, the government directs the use of the means of production to particular ends. 8 The planning authority cannot confine itself to providing opportunities for unknown people to make whatever use of them they like. 9 It cannot tie itself down in advance to general and formal rules which prevent arbitrariness. 10 It must decide questions which cannot be answered by formal principles only. 11 It must set up distinctions of merit between the needs of different people. 12 It will always be necessary to balance the interests of various groups and persons against each other.
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cis225: hayek3 February 8, 2001, p.2 13 In the end, somebody will have to decide whose interests are more important. 14 Government must thus take sides, and impose its valuations upon people. 15 Planning involves deliberately allowing one man to do what another must be prevented from doing. Chapter 7: “Economic Control and Totalitarianism” 16 Might central economic planning be acceptable if it confines itself “merely” to economic matters? 17 Hayek argues that this is a misguided argument: it is not true that there are purely economic ends that are separate from the other ends of life. 18 Strictly speaking, there are no “economic motives,” but only economic factors conditioning our striving for other ends. 19 If we strive for money, it is primarily because money is useful for helping us enjoy the fruits of our efforts. 20 To Hayek, pp.98-99: “. ..money is one of the greatest instruments of freedom ever invented by man.” 21 The reason is that it makes possible, for the individual, the pursuit of whatever ends he or she happens to have. Chapter 9: “Security and Freedom” 22 I will briefly skip chapter 8 and jump ahead to chapter 9: 23 The question here is: if central economic planning could guarantee economic security for individuals , would it be worth the other costs?
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cis225: hayek3 February 2006, p.3 24 Hayek argues that, in the pursuit of economic security for some individuals, the economic IN security of the rest of the society is thereby increased. 25 Let us consider this argument.
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Hayek3 - cis225 hayek3 February 2006 p.1 Does Socialism...

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