Hayek Road To Serfdom Analysis

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Friedrich Hayek, who had great impact on the period of Thatcher’s administration, was one of the most prominent economists in the 20th centuries after the Second World War. Although he was not a libertarian, Hayek was considered to be a classical liberal with a relatively conservative view on the government involvement in economy. In the early decades of 1900s, due to the Great Depression in the U.S in the 1930s, many European and American economists started to doubt “liberalism” and the necessity of a democratic government, and questioned whether Socialism is a better form. In his book The Road to Serfdom, Hayek powerfully analyzed how the use of economic planning leads to totalitarianism and why the policy of central planning is impractical, …show more content…
He argues that the Nazi Germany, Italy and the Soviet Union, all connected or adopted central planning and socialism, eventually became totalitarian countries can be proofs of his opinion. After the First World War, the conditions for a totalitarian government had developed rapidly especially after Adolf Hitler took control of the country. The Nazi government started a four years plan for the economic development, unlike the five years plan implemented by the Soviet Union, the Nazi four year plan did not replace the previous administration of economy. The new organization acted as a rival to the air force, also under Goring, to the army, and to the economics ministry, all of which participated in economic planning and administration ( Temin 575 ). The policy made by the Nazi government exactly shows that a planned economy must be dictatorial which the government use all the forces to be more authoritative and make the plans better implemented. Hence, central planning is a method that leads to …show more content…
Therefore, the ideology to create a combined system which has both democracy in politics and a high level of government control in economy is obviously impractical and

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