The book “Road to Serfdom” is about a man named Hayek. He believed that the world today is losing its freedom. Throughout the book the theme that is present is the conflict between classical liberalism and individualism and the how economic planning works. He believed that abandonment between the two was making us lose freedom.
The main point of the book “Road to Serfdom is how the economic planning leads to evil in totalitarism. This happens when economic planning replaces the market. Economic planning decides production and what to invest in and these are done by a plan, controlled by a Central government or agency. A market is part of the democracy, in which allows individual to be free. People have the freedom to pick what they want to …show more content…
Production is determined by monopolies or the state and Hayek contemplated whether planning is the result of technology or it was the result of the decisions made in other countries. The first argument was that the bigger industries that can afford the best and newest technology, are able to have better economies. This allows the better companies to make better goods at a cheaper price, putting their competitors out of business. That is called achieving a monopoly within their industry. If the first argument is true, then technological progress is the result of planning. Hayek believes that we did not gain our monopolistic status through technology being made, but through direct and indirect support from each state. If the planners do not have enough knowledge on the monopolistic effects of the state, then the government can come in and fix the problem that the planning has created. The second argument is that technology advances within the society. If you don’t see the bigger picture of an economic process, then it is necessary for individuals of agencies to coordinate social life, to make sure society doesn't turn into chaos. Hayek said that society is best when the role of collecting demand of the people and satisfying those demands, should be left to the people who can actually meet those
The main point of the book “Road to Serfdom is how the economic planning leads to evil in totalitarism. This happens when economic planning replaces the market. Economic planning decides production and what to invest in and these are done by a plan, controlled by a Central government or agency. A market is part of the democracy, in which allows individual to be free. People have the freedom to pick what they want to …show more content…
Production is determined by monopolies or the state and Hayek contemplated whether planning is the result of technology or it was the result of the decisions made in other countries. The first argument was that the bigger industries that can afford the best and newest technology, are able to have better economies. This allows the better companies to make better goods at a cheaper price, putting their competitors out of business. That is called achieving a monopoly within their industry. If the first argument is true, then technological progress is the result of planning. Hayek believes that we did not gain our monopolistic status through technology being made, but through direct and indirect support from each state. If the planners do not have enough knowledge on the monopolistic effects of the state, then the government can come in and fix the problem that the planning has created. The second argument is that technology advances within the society. If you don’t see the bigger picture of an economic process, then it is necessary for individuals of agencies to coordinate social life, to make sure society doesn't turn into chaos. Hayek said that society is best when the role of collecting demand of the people and satisfying those demands, should be left to the people who can actually meet those