Friedrich Hayek Quotes (79 quotes) | Quotes of famous people

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The Fatal Conceit

Friedrich Hayek

Friedrich Hayek: 79 quotes 7 likes

Famous Friedrich Hayek Quotes

“The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”

Friedrich Hayek book The Fatal Conceit

Source: 1980s and later, The Fatal Conceit: The Errors of Socialism (1988), Ch. 5: The Fatal Conceit.
Context: Whereas, in fact, specialised students, even after generations of effort, find it exceedingly difficult to explain such matters, and cannot agree on what are the causes or what will be the effects of particular events. The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.
To the naive mind that can conceive of order only as the product of deliberate arrangement, it may seem absurd that in complex conditions order, and adaptation to the unknown, can be achieved more effectively by decentralizing decisions and that a division of authority will actually extend the possibility of overall order. Yet that decentralization actually leads to more information being taken into account.

“It is no exaggeration to say that the central aim of socialism is to discredit those traditional morals which keep us alive.”

Friedrich Hayek

"The Origins and Effects of Our Morals: A Problem for Science", in The Essence of Hayek (1984)
1980s and later

“We do not owe our morals to our intelligence: we owe them to the fact that some groups uncomprehendingly accepted certain rules of conduct — the rules of private property, of honesty, and of the family — that enabled the groups practising them to prosper, multiply, and gradually to displace the others.”

Friedrich Hayek

1980s and later, Knowledge, Evolution and Society (1983), "Coping with Ignorance", "Our Moral Heritage"

“The more the state "plans" the more difficult planning becomes for the individual.”

Friedrich Hayek

Source: 1940s–1950s, The Road to Serfdom (1944), Chapter 6: Planning and the Rule of Law

“The advice I would give is: If you have the courage to do so, don't feel patriotic in monetary matters. Choose the money which helps you best.”

Friedrich Hayek

1980s and later, Interview in Silver & Gold Report (1980)

“I don't like criticizing Milton Friedman not only because he is an old friend but because, outside of monetary theory, we are in complete agreement. Our general views on what is desired and what is not are almost identical until we get on to money. But if I told him what I said before, that I very much doubt whether monetary policy has ever done anything good, he would disagree. He personally is convinced that a good monetary policy is a foundation for everything.”

Friedrich Hayek

Exclusive Interview with F.A. Hayek by James U. Blanchard III, in Cato Policy Report (May/June 1984)
1980s and later

Friedrich Hayek Quotes about people

“Perhaps I'm unrealistic. As long as people do not fully realize the danger of inflation, they may well pressure for more inflation as a short-term remedy for evils. Though we may well be driven into more, until people have learned the lesson, but that means that inflation may still do more of a great deal of harm, before it will be cured.”

Friedrich Hayek

1975 interview https://mises.org/library/hayek-meets-press-1975 on "Meet the Press."
1960s–1970s

“Our basic problem is that we have three levels, I would say, of moral beliefs. We have the first instance, our intuitive moral feelings which are adapted to the small, person-to-person society where we act for people whom we know and are served by people whom we know. Then, we have a society governed by moral traditions which, unlike what modern rationalists believe, are not intellectual discoveries of men who designed them, but as a result of a persons, which I now prefer to describe as term of 'group selection.' Those groups who had accidentally developed such as the tradition of private property and the family who did succeed, but never understood this. So we owe our present extended order of human cooperation very largely to a moral tradition which the intellectual does not approve of, because it has never been intellectually designed and it has to compete with a third level of moral beliefs, those which the morals which the intellectuals designed in the hope that they can better satisfy man's instincts than the traditional morals to do. And we live in a world where three moral traditions are in constant conflict, the innate ones, the traditional ones, and the intellectually designed ones, and ultimately, all our political conflicts of this time can be reduced as affected by a conflict between free moral tradition of a different nature, not only of different content.”

Friedrich Hayek

in 1985 interview https://www.youtube.com/watch?v=11AXDT5824Y with John O'Sullivan
1980s and later

“A reconsideration of the discussion in which I took an active part more than 40 years ago has left me with a rather depressing view of the somewhat shameful state of what has become an established part of economic science, the subject of ‘economic systems’. It appears to me that in this subject political attractiveness has been preserved by the flimsiest of arguments. The kindest thing one can say is that some well-meaning people have allowed themselves to be deceived by the vague and thoughtless language commonly used by specialists in the theory of these issues.”

Friedrich Hayek

1980s and later, "Two Pages of Fiction" (1982)

“Nobody who has lived through the rise of the violent anti-Semitism which led to Hitler can refuse Mrs. Thatcher admiration for her courageous and outspoken warning. When I grew up in Vienna the established Jewish families were a generally respected group and all decent people would frown upon the occasional anti-Jewish outbursts of a few popular politicians. It was the sudden influx of large numbers of Galician and Polish Jews [during World War I] … which in a short period changed the attitude. They were too visibly different to be readily absorbed.”

Friedrich Hayek

Letter to The Times after Thatcher claimed that British people were afraid of being "swamped" by people of a different culture. (11 February 1978), p. 15
1960s–1970s

“The attack on economics sprang rather from a dislike of the application of scientific methods to the investigation of social problems. The existence of a body of reasoning which prevented people from following their first impulsive reactions, and which compelled them to balance indirect effects, which could be seen only by exercising the intellect, against intense feeling caused by the direct observation of concrete suffering, then as now, occasioned intense resentment.”

Friedrich Hayek

"The Trend of Economic Thinking", lecture delivered at LSE on March 1, 1933, published in Economica (May 1933)
1920s–1930s

“The sentence, 'stopping the printing presses,' is a figurative expression, because it is being done now by creating credit by the Federal Reserve System. But this is government action — all inflation is ultimately the result of activities which government determines and can control. And all inflations have been stopped in the past by the government stopping creating money, or preventing the central bank from creating more money. May I add just one thing? See, all inflations have been stopped by people who created or believed in a very naive form of the Quantity Theory, and acted on that. It may be wrong, but it is the only adequate theory effective to stop an inflation.”

Friedrich Hayek

1975 interview https://mises.org/library/hayek-meets-press-1975 on "Meet the Press."
1960s–1970s

Friedrich Hayek: Trending quotes

“Well, I would say that, as long-term institutions, I am totally against dictatorships. But a dictatorship may be a necessary system for a transitional period. At times it is necessary for a country to have, for a time, some form or other of dictatorial power. As you will understand, it is possible for a dictator to govern in a liberal way. And it is also possible for a democracy to govern with a total lack of liberalism. Personally I prefer a liberal dictator to democratic government lacking liberalism.”

Friedrich Hayek

Interview in El Mercurio (1981)
1980s and later
Context: Well, I would say that, as long-term institutions, I am totally against dictatorships. But a dictatorship may be a necessary system for a transitional period. At times it is necessary for a country to have, for a time, some form or other of dictatorial power. As you will understand, it is possible for a dictator to govern in a liberal way. And it is also possible for a democracy to govern with a total lack of liberalism. Personally I prefer a liberal dictator to democratic government lacking liberalism. My personal impression — and this is valid for South America — is that in Chile, for example, we will witness a transition from a dictatorial government to a liberal government. And during this transition it may be necessary to maintain certain dictatorial powers, not as something permanent, but as a temporary arrangement.

Way , Democracy , Understanding , Time

“I have arrived at the conviction that the neglect by economists to discuss seriously what is really the crucial problem of our time is due to a certain timidity about soiling their hands by going from purely scientific questions into value questions.”

Friedrich Hayek

Conversation at the American Enterprise Institute for Public Policy Research, Washington, D.C. (9 February 1978); published in A Conversation with Friedrich A. Von Hayek: Science and Socialism (1979)
1960s–1970s
Context: I have arrived at the conviction that the neglect by economists to discuss seriously what is really the crucial problem of our time is due to a certain timidity about soiling their hands by going from purely scientific questions into value questions. This is a belief deliberately maintained by the other side because if they admitted that the issue is not a scientific question, they would have to admit that their science is antiquated and that, in academic circles, it occupies the position of astrology and not one that has any justification for serious consideration in scientific discussion. It seems to me that socialists today can preserve their position in academic economics merely by the pretense that the differences are entirely moral questions about which science cannot decide.

Question , Problem , Time

“Yet that decentralization actually leads to more information being taken into account.”

Friedrich Hayek book The Fatal Conceit

Friedrich Hayek Quotes

“Any kind of discrimination — be it on grounds of religion, political opinion, race, or whatever it is — seems to be incompatible with the idea of freedom under the law. Experience has shown that separate never is equal and cannot be equal.”

Friedrich Hayek

"Conversation with Systematic Liberalism," Forum (September 1961). 
1960s–1970s
Context: nowiki>[Apartheid law in South Africa] appears to be a clear and even extreme instance of that discrimination between different individuals which seems to me to be incompatible with the reign of liberty. The essence of what I said [in The Constitution of Liberty] was really the fact that the laws under which government can use coercion are equal for all responsible adult members of that society. Any kind of discrimination — be it on grounds of religion, political opinion, race, or whatever it is — seems to be incompatible with the idea of freedom under the law. Experience has shown that separate never is equal and cannot be equal.

Religion , Law , Idea , Freedom

“Questions about the influence of socialism are increasingly more difficult to answer as the word socialism has so many meanings. The idea that the inequalities of incomes can be greatly reduced has come to be recognized as largely impractical. Practically all endeavours at just distribution express more or less arbitrary conceptions of what is just and the central idea of Marxian socialism of a rationalisation of the means of production has been largely abandoned as technically impracticable. I believe that in general the idea of justice is more closely met by a freely competitive market than by any deliberate allocation of income to some imagined ideal of the kind.”

Friedrich Hayek

December 13, 1991, quoted in Friedrich Hayek: A Biography (2001) by Alan O. Ebenstein
1980s and later

Justice , Imagination , Idea , Question

“A society that does not recognize that each individual has values of his own which he is entitled to follow can have no respect for the dignity of the individual and cannot really know freedom.”

Friedrich Hayek

Source: 1960s–1970s, The Constitution of Liberty (1960), p. 79.

Freedom

“Yet, though the French Revolution was so largely inspired by the ideal of the Rule of Law, it is questionable whether it really helped the advance towards that ideal. In its course too many different aspirations gained influence which it was difficult to reconcile with that ideal.”

Friedrich Hayek

Lecture II. Liberalism and Administration: The Rechtsstaat - 7. Montesquieu, Rousseau, and the French Revolution
1940s–1950s, The Political Ideal of the Rule of Law (1955)

Law , Question , Help

“What all this amounts to, then, is that the Rule of Law requires that administrative discretion in coercive action (i. e., in interfering with the person and property of the private citizen) must always be subject to review by an independent court which is not an instrument of, or even privy to, the aims of current governmental policy; that its review must in all such instances extend to the substance of the administrative act and not merely to the question whether it was infra or ultra vires; and that, if such a court finds that the rights of private citizens have been infringed, it will assess damages just as if the right of this person had been violated by another private citizen. This, in addition to the familiar requirements of generality, equality, and certainty of the law is really the crux of the matter, the decisive point on which it depends whether the Rule of Law prevails or not.”

Friedrich Hayek

Lecture III. The Safeguards of Individual Liberty - 19. Fundamental Rights and the Protected Private Sphere
1940s–1950s, The Political Ideal of the Rule of Law (1955)

Law , Question , Decision , Dependency

“All economic activity is carried out through time. Every individual economic process occupies a certain time, and all linkages between economic processes necessarily involve longer or shorter periods of time.”

Friedrich Hayek

"Intertemporal Price Equilibrium and Movement in the Value of Money" (1928)
1920s–1930s

Time

“It seems to me more and more that the immense efforts which during the great popularity of macroeconomics over the last thirty or forty years have been devoted to it, were largely misspent, and that if we want to be useful in the future we shall have to be content to improve and spread the admittedly limited insights which microeconomics conveys.I believe it is only microeconomics which enables us to understand the crucial functions of the market process: that it enables us to make effective use of information about thousands of facts of which nobody can have full knowledge.”

Friedrich Hayek

1980s and later, Knowledge, Evolution and Society (1983), "Coping with Ignorance"
Source: http://imprimis.hillsdale.edu/coping-with-ignorance/

Effort , Future , Knowledge , Understanding

“If the world as a whole returned to the gold standard there would be such fluctuations in the value of gold that it would very soon prove impractical.
Today an international gold standard could only mean that a few countries would maintain a real gold standard. The other countries would hang on to the system through a gold exchange standard — where the currency isn't really redeemable in gold but the government attempts to keep a fixed rate between its currency and gold.”

Friedrich Hayek

1980s and later, Interview in Silver & Gold Report (1980)

World , Country

“I have certainly never contended that generally authoritarian governments are more likely to secure individual liberty than democratic ones, but rather the contrary. This does not mean, however, that in some historical circumstances personal liberty may not have been better protected under an authoritarian than democratic government. (…) More recently I have not been able to find a single person even in much maligned Chile who did not agree that personal freedom was much greater under Pinochet than it had been under Allende. Nor have I heard any sensible person claim that in the principalities of Monaco or Lichtenstein, which I am told are not precisely democratic, personal liberty is smaller than anywhere else!”

Friedrich Hayek

Letter to The Times (3 August 1978), p. 15
1960s–1970s

Freedom , Personality

“Those communities who adopted the new rules and, in doing so, infringed upon deeply embedded natural feelings became the successful ones, the ones who multiplied because they were more prosperous and were able to attract people from other groups.”

Friedrich Hayek

1980s and later, Knowledge, Evolution and Society (1983), "Coping with Ignorance", "The Reactionary Nature of the Socialist Conception"

People , Feeling , Communication , Nature

“Since the value of freedom rests on the opportunities it provides for unforeseen and unpredictable actions, we will rarely know what we lose through a particular restriction of freedom.”

Friedrich Hayek

“Principles or Expediency?” Toward Liberty: Essays in Honor of Ludwig von Mises on the Occasion of his 90th Birthday (29 September 1971)
1960s–1970s

Freedom

“If a big country like the United States did return to the gold standard, it would start a great deflation. Most likely the government couldn't stick to it for long. They'd switch the policy to some halfway measure like a gold exchange standard.”

Friedrich Hayek

1980s and later, Interview in Silver & Gold Report (1980)

Country

“I feared that such a prize, as I believe is true of the activities of some of the great scientific foundations, would tend to accentuate the swings of scientific fashion. This apprehension the selection committee has brilliantly refuted by awarding the prize to one whose views are as unfashionable as mine are.”

Friedrich Hayek

1960s–1970s, Nobel Banquet Speech (1974)

Fear , Fashion

“I don't know what monetarism is. If monetarism just means a good old-fashioned quantity theory, of course it has not failed. If it means the particular version of Milton Friedman, I think it has because he imagines that he can achieve — ascertain — a clear quantity relationship between a measurable quantity of money and the price level. I don't think that is possible. In fact, just about 40 years ago in the opening sentences of my book, Prices and Production, I wrote that it would be a great misfortune if people ever cease to believe in the quantity theory of money. It would be even worse ever to believe it literally. And that's exactly what Milton Friedman does.”

Friedrich Hayek

"Interview with F. A. Hayek", in Cato Policy Report (February 1983)
1980s and later

Money , People , Books , Imagination

“All the paradigms of culturally evolved institutions, morals, exchange, and money refer to such practices whose benefits transcend the individuals who practice them in the particular instances. The result is that whole groups may be helped by them to expand into what I shall call extended orders, through the effects of practices of which the individuals are not aware. Such practices can lead to the formation of orderly structures far exceeding the perception of those whose actions produce them.”

Friedrich Hayek

"The Origins and Effects of Our Morals: A Problem for Science", in The Essence of Hayek (1984)
1980s and later

Money , Help

“I've always doubted that the socialists had a leg to stand on intellectually. They have improved their argument somehow, but once you begin to understand that prices are an instrument of communication and guidance which embody more information than we directly have, the whole idea that you can bring about the same order based on the division of labor by simple direction falls to the ground. Similarly, the idea [that] you can arrange for distributions of incomes which correspond to some conception of merit or need. If you need prices, including the prices of labor, to direct people to go where they are needed, you cannot have another distribution except the one from the market principle. I think that intellectually there is just nothing left of socialism.”

Friedrich Hayek

Interview with Thomas W. Hazlett in May of 1977, as published in " The Road to Serfdom, Forseeing the Fall", in Reason magazine (July 1992) http://reason.com/archives/1992/07/01/the-road-from-serfdom
1960s–1970s

People , Communication , Idea , Understanding

“I don’t believe we’re in for a crash now. It's much more likely that government will just conceal the continuation of inflation by price controls. But if anything is worse than an open inflation, it’s a repressed inflation. What you’re likely to get is not a violent deflation but increasing stagnation of productivity.”

Friedrich Hayek

1980s and later, Interview in Silver & Gold Report (1980)

“Conservatism, though a necessary element in any stable society, is not a social program; in its paternalistic, nationalistic and power adoring tendencies it is often closer to socialism than true liberalism; and with its traditionalistic, anti-intellectual, and often mystical propensities it will never, except in short periods of disillusionment, appeal to the young and all those others who believe that some changes are desirable if this world is to become a better place.”

Friedrich Hayek

Source: 1940s–1950s, The Road to Serfdom (1944), p. xi

World , Change

“You cannot successfully use your technical knowledge unless you are a fairly educated person, and, in particular, have some knowledge of the whole field of the social sciences as well as some knowledge of history and philosophy. Of course real competence in some particular field comes first. Unless you really know your economics or whatever your special field is, you will be simply a fraud. But if you know economics and nothing else, you will be a bane to mankind, good, perhaps, for writing articles for other economists to read, but for nothing else.”

Friedrich Hayek

Friedrich Hayek (1991). "On being an economist." In: W. W. Bartley and S. Kresge (eds.), The Trend of Economic Thinking; Essays on Political Economists and Economic History, Volume III, London. Routledge. p. 38
1980s and later

Education , History , Fraud , Knowledge

“There can be no doubt that our innate moral emotions and instincts were acquired in the hundreds of thousand years—probably half a million years—in which Homo sapiens lived in small hunting and gathering groups and developed a physiological constitution which governed his innate instincts. These instincts are still very strong in us. Yet civilization developed by our gradually learning cultural rules which were transmitted by teaching and which served largely to restrain and suppress some of those natural instincts.”

Friedrich Hayek

1980s and later, Knowledge, Evolution and Society (1983), "Coping with Ignorance", "Science and Socialism"

Nature , Strong , Learning

“Those who suffer from this monopoly should form a libertarian anti-labour union movement of workers directed against what has long become a deceptive farce favouring an elite that has gained dominance in a party wrongly claiming to represent the interest of all workers. Once it is recognized that the unions prevent people from getting jobs, such a movement may readily spread.”

Friedrich Hayek

"Jobs: the basic truths we have cast aside", The Times (7 August 1984), p. 10
1980s and later

People , Suffering

“The human groups have been selected for the effects of their habitual practices, effects of which the individuals were not and could not be aware. Customs are mostly group properties, beneficial only if they are common properties of its individual members but referring to reciprocal action.”

Friedrich Hayek

"The Origins and Effects of Our Morals: A Problem for Science", in The Essence of Hayek (1984)
1980s and later

“I did say in print, in February, 1929 that there was no hope for economic recovery in Europe before American interest rates came down. That wouldn’t be until the American boom collapsed — which was likely to happen within the next few months. And this did, in fact, happen in October 1929.
What made me expect this, of course, was one of my main theoretical beliefs — that an inflationary boom cannot be maintained indefinitely. I was sure that a very unstable situation was created by the artificial prolongation of the boom in 1927, when the Federal Reserve tried to stave off a collapse by credit expansion.”

Friedrich Hayek

1980s and later, Interview in Silver & Gold Report (1980)

Hope

“The social sciences building at the University of Chicago indeed still bears since it was built 40 years ago on its outside an inscription taken from the famous physicist Lord Kelvin: "When you cannot measure, your knowledge is meager and unsatisfactory." I will admit that that may be true, but it is certainly not scientific to insist on measurement where you don't know what your measurements mean. There are cases where measurements are not relevant. What has done much damage to microeconomics is striving for a pseudo-exactness by imitating methods of the physical sciences which have to deal with what are fundamentally much more simple phenomena. And the assumption that it is possible to ascertain all the relevant particular facts still completely dominates the alternative methods of dealing with our constitutional ignorance, which economists have tried to overcome. This of course, is what has come to be called macroeconomics as distinct from microeconomics.”

Friedrich Hayek

1980s and later, Knowledge, Evolution and Society (1983), "Coping with Ignorance"

Knowledge , Universe , Science

“A limited democracy might indeed be the best protector of individual liberty and be better than any other form of limited government, but an unlimited democracy is probably worse than any other form of unlimited government, because its government loses the power even to do what it thinks right if any group on which its majority depends thinks otherwise. If Mrs. Thatcher said that free choice is to be exercised more in the market place than in the ballot box, she has merely uttered the truism that the first is indispensable for individual freedom, while the second is not: free choice can at least exist under a dictatorship that can limit itself but not under the government of an unlimited democracy which cannot.”

Friedrich Hayek

Letter to The Times http://coreyrobin.files.wordpress.com/2012/07/hayek-letter-to-the-times-july-11-1978.pdf (11 July 1978), p. 15
1960s–1970s

Exercises , Democracy , Thinking , Freedom

“The next time I met Ludwig Wittgenstein was in the spring of 1928 when the economist Dennis Robertson, who was taking me for a walk through the Fellows' Gardens of Trinity College, Cambridge, suddenly decided to change course because on the top of a little rise he perceived the form of the philosopher draped over a deckchair. He evidently stood rather in awe of him, and he did not wish to disturb him.”

Friedrich Hayek

" Remembering My Cousin, Ludwig Wittgenstein https://www.unz.org/Pub/Encounter-1977aug-00020", Encounter ( August 1977 https://www.unz.org/Pub/Encounter-1977aug). Page 21.
1960s–1970s

Spring , Change , Time

“Life at Cambridge during those war years was to me particularly congenial, and it completed the process of thorough absorption in English life which, from the beginning, I had found very easy. Somehow the whole mood and intellectual atmosphere of the country had at once proved extraordinarily attractive to me, and the conditions of a war in which all my sympathies were with the English greatly speeded up the process of becoming thoroughly at home—much more than in my native Austria from which I had already become somewhat estranged during the conditions of the 1920s. While neither on my early visit to the United States nor during my later stay there or still later in Germany did I feel that I really belonged there, English ways of life seemed so naturally to accord with all my instincts and dispositions that, if it had not been for very special circumstances, I should never have wished to leave the country again. And of all the forms of life, that at one of the colleges of the old universities…still seems to me the most attractive. The evenings at the High Table and the Combinations Room at King's are among the pleasantest recollections of my life, and some of the older men I came then to know well, especially J. H. Clapham, remained, while they lived, dear friends.”

Friedrich Hayek

Stephen Kresge and Leif Wenar (eds.), Hayek on Hayek: An Autobiographical Dialogue (London: Routledge, 1994), p. 86
1980s and later

Life , Men , War , Way

“Our morality itself is the result of a process of cultural selection. Those things survive which enable the species to multiply.”

Friedrich Hayek

1980s and later, Knowledge, Evolution and Society (1983), "Coping with Ignorance", "Our Moral Heritage"

“Conservatism proper is a legitimate, probably necessary, and certainly widespread attitude of opposition to drastic change. It has, since the French Revolution, for a century and a half played an important role in European politics. Until the rise of socialism its opposite was liberalism… There is nothing corresponding to this conflict in the history of the United States, because what in Europe was called ‘liberalism’ was here the common tradition on which the American polity had been built: thus the defender of the American tradition was a liberal in the European sense.”

Friedrich Hayek

"Why I am Not a Conservative" https://www.press.uchicago.edu/books/excerpt/2011/hayek_constitution.html
1960s–1970s, The Constitution of Liberty (1960)

History , Sense , Change

“On the scale on which [tax cutting] is being tried, I'm a little apprehensive. I'm all for reduction of government expenditures but to anticipate it by reducing the rate of taxation before you have reduced expenditure is a very risky thing to do.”

Friedrich Hayek

in "Business People; A Nobel Winner Assesses Reagan", The New York Times (1 December 1982)
1980s and later

“What a free society offers to the individual is much more than what he would be able to do if only he were free.”

Friedrich Hayek

Source: 1960s–1970s, The Constitution of Liberty (1960), p. 6.

“Freedom granted only when it is known beforehand that its effects will be beneficial is not freedom.”

Friedrich Hayek

Source: 1960s–1970s, The Constitution of Liberty (1960), p. 83.

Freedom

“I think the basic misconception is to speak of the so-called “best” allocation of resources. What is the best? In common economics it is defined as what would be if we knew everything. Economists operate with the fictitious assumption that all the relevant data is known, but this is totally unrealistic. Nobody knows all the data. What we have is widely dispersed knowledge, which cannot be concentrated in one mind. To call the situation—which would use all the knowledge available—“optimal” is nonsense because it is by definition a non-achievable solution. Our problem is not the full utilization of all knowledge but the best use we can achieve with any known institutional structure. In that sense, some oligopolistic (and even monopolistic situations), represent the best possible utilization of knowledge that we can achieve. Even the action of a monopolist can be extremely beneficial.”

Friedrich Hayek

1960s–1970s, A Conversation with Professor Friedrich A. Hayek (1979)

Optimism , Knowledge , Problem , Thinking

“I don’t have many strong dislikes. I admit that as a teacher—I have no racial prejudices in general—but there were certain types, and conspicuous among them the Near Eastern populations, which I still dislike because they are fundamentally dishonest. And I must say dishonesty is a thing I intensely dislike. It was a type which, in my childhood in Austria, was described as Levantine, typical of the people of the eastern Mediterranean. But I encountered it later, and I have a profound dislike for the typical Indian students at the London School of Economics, which I admit are all one type—Bengali moneylender sons. They are to me a detestable type, I admit, but not with any racial feeling. I have found a little of the same amongst the Egyptians —basically a lack of honesty in them. If I advise speaking about honesty, I think honesty is really the best expression of what I call the morals of a civilized society. Primitive man lacks a conception of honesty.”

Friedrich Hayek

Conversation https://www.youtube.com/watch?v=JoV-5p88rGU&feature=youtu.be&t=53m31s with Chitester (1978); published in Nobel Prize-Winning Economist: Friedrich A. von Hayek https://archive.org/details/nobelprizewinnin00haye (1983), p. 490
1960s–1970s

People , School , Feeling , Thinking

“I must confess that if I had been consulted whether to establish a Nobel Prize in economics, I should have decidedly advised against it.”

Friedrich Hayek

1960s–1970s, Nobel Banquet Speech (1974)

“There mere idea that the planning authority could ever possess a complete inventory of the amounts and qualities of all the different materials and instruments of production of which the manager of a particular plant will know or be able to find out makes the whole proposal a somewhat comic fiction. Once this is recognised it becomes obvious that what prices ought to be can never be determined without relying on competitive markets.”

Friedrich Hayek

1980s and later, "Two Pages of Fiction" (1982)

Idea

“What the planning authority would have to know would not be the mere totals but the distinct, peculiar conditions prevailing in each enterprise which affect the information about values transmitted through market prices but would be completely lost in any statistical information about quantities that might reach the authority from time to time.”

Friedrich Hayek

1980s and later, "Two Pages of Fiction" (1982)

Time

“Since only actions aimed at perceived benefit to others were, to Aristotle's mind, morally approved, actions solely for personal gain must be bad. That commercial considerations may not have affected the daily activities of most people does not mean however that over any prolonged period their very lives did not depend on the functioning of a trade that enabled them to buy essentials. That production for gain which Aristotle denounced as unnatural had -- long before his time -- already become the foundation of an extended order far transcending the known needs of other persons.”

Friedrich Hayek

Source: 1980s and later, The Fatal Conceit: The Errors of Socialism (1988), p. 46

People , Time , Dependency , Personality

“What struck me most in this conversation was a radical passion for truthfulness in everything (which I came to know as a characteristic vogue among the young Viennese intellectuals of the generation immediately preceding mine only in the following university years). This truthfulness became almost a fashion in that border group between the purely Jewish and the purely Gentile parts of the intelligentsia in which I came so much to move. It meant much more than truth in speech. One had to "live" truth and not tolerate any pretence in oneself or others. It sometimes produced outright rudeness and, certainly, unpleasantness. Every convention was dissected and every conventional form exposed as fraud. Wittgenstein merely carried this further in applying it to himself. I sometimes felt that he took a perverse pleasure in discovering falsehood in his own feelings and that he was constantly trying to purge himself of all fraud.”

Friedrich Hayek

" Remembering My Cousin, Ludwig Wittgenstein https://www.unz.org/Pub/Encounter-1977aug-00020", Encounter ( August 1977 https://www.unz.org/Pub/Encounter-1977aug). Page 20.
1960s–1970s

Pleasure , Truth , Feeling , Fashion

“An evil fate befall German efforts to defend the ideal of liberty in general and in the field of economics in particular, with the result that today I am almost the only survivor of a generation that set out in the wake of the First World War to devote all its energies to the preservation of a civilised society, a generation that set itself the task to build a better society in a systematic fashion and to learn to understand, an to some extent defend, a tradition that had civilised the world.”

Friedrich Hayek

"The Rediscovery of Freedom: Personal Recollections" (1983), published in The Fortunes of Liberalism (1992)
1980s and later

Fate , War , World , Fashion

“And since any inflation, however modest at first, can help employment only so long as it accelerates, adopted as a means of reducing unemployment, it will do so for any length of time only while it accelerates. "Mild" steady inflation cannot help—it can lead only to outright inflation. That inflation at a constant rate soon ceases to have any stimulating effect, and in the end merely leaves us with a backlog of delayed adaptations, is the conclusive argument against the "mild" inflation represented as beneficial even in standard economics textbooks.”

Friedrich Hayek

1980s Unemployment and the Unions: Essays on the Impotent Price Structure of Britain and Monopoly in the Labour Market https://books.google.com/books?id=zZu3AAAAIAAJ&q=%22only+while+it+accelerates%22&dq=%22only+while+it+accelerates%22&hl=en&sa=X&ei=HBhsUYjUGMv34QSW-YDgDg&redir_esc=y (1984)
1980s and later

Time , Help

“The Nobel Prize confers on an individual an authority which in economics no man ought to possess.
This does not matter in the natural sciences. Here the influence exercised by an individual is chiefly an influence on his fellow experts; and they will soon cut him down to size if he exceeds his competence.
But the influence of the economist that mainly matters is an influence over laymen: politicians, journalists, civil servants and the public generally.
There is no reason why a man who has made a distinctive contribution to economic science should be omnicompetent on all problems of society — as the press tends to treat him till in the end he may himself be persuaded to believe.”

Friedrich Hayek

1960s–1970s, Nobel Banquet Speech (1974)

Exercises , Nature , Problem , Science

“I believe that the main lesson which our generation has learnt is that we must find a new limit for the activities of government, a limit which leaves ample scope for sensible experimentation but which secures the freedom of the individual as the mainspring of all social and political activity. The whole purpose of these lectures has been to suggest that we can find such a limit if we are willing to revive and develop the ancient ideal of the Rule of Law.”

Friedrich Hayek

Lecture IV. The Decline of the Rule of Law - 25. The Task for Liberty- Loving Statesmen
1940s–1950s, The Political Ideal of the Rule of Law (1955)

Law , Freedom

“I cannot help but protest in the strongest possible terms against the cartoon on page 3 of your publication of the 30th of December equating the present governments of Poland and Chile. It can only be explained by complete ignorance of the facts or by the systematically promoted socialist calumnies of the present situation in Chile, which I had not expected the F. A. Z. to fall for. I believe that all the participants in the Mont Pelerin Society conference held a few weeks ago in Chile would agree with me that you owe the Chilean government a humble apology for such twisting of the facts. Any Pole lucky enough to escape to Chile could consider himself fortunate.”

Friedrich Hayek

Letter to the editor of Frankfurter Allgemeine Zeitung, on a cartoon comparing Pinochet's Chile to Jaruzelski's Poland, which was published on 6 January 1982
1980s and later

Help

“The illiterate expression ‘given data’ constantly recurs in Lange. It appears to have an irresistable attraction to mathematical economists because it doubly assures them that they know what they do not know. It seems to bewitch them into making assertions about the real world for which they have no empirical justification whatever.”

Friedrich Hayek

1980s and later, "Two Pages of Fiction" (1982)

World , Mathematics , Appearance

“If craftsmen and blacksmiths were feared for transforming material substance, if traders were feared for transforming such intangible qualities as value, how much more will the banker be feared for the transformations he effects with the most abstract and immaterial of all economic institutions? Thus we reach the climax of the progressive replacement of the perceivable and concrete by abstract concepts shaping rules guiding activity: money and its institutions seem to be beyond the boundary of laudable and understandable physical efforts of creation, in a realm where the comprehension of the concrete ceases and incomprehensible abstractions rule.”

Friedrich Hayek

Source: 1980s and later, The Fatal Conceit: The Errors of Socialism (1988), p.102

Money , Fear , Understanding , Effort

“I believe you will be shocked by my stating this so bluntly because we are still guided instinctively by those inherited "natural" emotions… in a sense we are all socialist.”

Friedrich Hayek

1980s and later, Knowledge, Evolution and Society (1983), "Coping with Ignorance", "The Reactionary Nature of the Socialist Conception"