BookReview - The Road to Serfdom is a book written by...

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The Road to Serfdom is a book written by Friedrich Hayek (recipient of the Nobel Memorial Prize in Economic Sciences in 1974) which has significantly shaped the political ideologies of Margaret Thatcher and Ronald Reagan and the concepts of ' Reagonomics ' and ' Thatcherism '. The Road to Serfdom is among the most influential and popular expositions of classical liberalism and libertarianism . Main thesis and arguments Hayek’s central thesis is that all forms of collectivism lead logically and inevitably to tyranny, and he used the Soviet Union and Nazi Germany as examples of countries which had gone down “the road to serfdom” and reached tyranny. Hayek argued that within a centrally planned economic system, the distribution and allocation of all resources and goods would devolve onto a small group, which would be incapable of processing all the information pertinent to the appropriate distribution of the resources and goods at the central planners’ disposal. Disagreement about the practical implementation of any economic plan combined with the inadequacy of the central planners’ resource management would invariably necessitate coercion in order for anything to be achieved. Hayek further argued that the failure of central planning would be perceived by the public as an absence of sufficient power by the state to implement an otherwise good idea. Such a perception would lead the public to vote more power to the state, and would assist the rise to power of a “strong man” perceived to be capable of “getting the job done”. After these developments Hayek argued that a country would be ineluctably driven into outright totalitarianism. For Hayek “the road to serfdom” inadvertently set upon by central planning, with its dismantling of the free market system, ends in the destruction of all individual economic and personal freedom. Hayek argued that countries such as the Soviet Union and Nazi Germany had already gone down the "road to serfdom ", and that various democratic nations are being led down the same road. In The Road to Serfdom he wrote: "The principle that the end justifies the means is in individualist
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ethics regarded as the denial of all morals. In collectivist ethics it becomes necessarily the supreme rule." he Road to Serfdom  by F. A. Hayek is a powerful analysis of how  the use of economic planning leads to the evils of totalitarianism  when economic planning replaces the markets. A democracy is  based on  individual  freedoms. Individuals have the freedom to  make their own choices and decisions. One of the choices and  decisions regards the choice of occupation and employment. A  market allocates resources, one of which is labor, to different  uses in response to market conditions. This happens  automatically through changes in wages and prices without  direction from a commissar.  The market  results in an efficient  use of resources with output production in accordance with the 
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This note was uploaded on 02/25/2009 for the course ACC 101 taught by Professor Fried during the Spring '09 term at Coastline Community College.

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BookReview - The Road to Serfdom is a book written by...

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