The Fatal Conceit: The Errors of Socialism (COLLECTED WORKS OF F A HAYEK) - Softcover

Hayek, F. A.

 
9780226320663: The Fatal Conceit: The Errors of Socialism (COLLECTED WORKS OF F A HAYEK)

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Hayek gives the main arguments for the free-market case and presents his manifesto on the "errors of socialism." Hayek argues that socialism has, from its origins, been mistaken on factual, and even on logical, grounds and that its repeated failures in the many different practical applications of socialist ideas that this century has witnessed were the direct outcome of these errors. He labels as the "fatal conceit" the idea that "man is able to shape the world around him according to his wishes."

"The achievement of The Fatal Conceit is that it freshly shows why socialism must be refuted rather than merely dismissed—then refutes it again."—David R. Henderson, Fortune.

"Fascinating. . . . The energy and precision with which Mr. Hayek sweeps away his opposition is impressive."—Edward H. Crane, Wall Street Journal

F. A. Hayek is considered a pioneer in monetary theory, the preeminent proponent of the libertarian philosophy, and the ideological mentor of the Reagan and Thatcher "revolutions."

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Über die Autorin bzw. den Autor

F. A. Hayek (1899-1992), recipient of the Medal of Freedom in 1991 and co-winner of the Nobel Memorial Prize in Economics in 1974, was a pioneer in monetary theory and a leading proponent of classical liberalism  in the twentieth century. He taught at the University of London, the University of Chicago, and the University of Freiburg.

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Adopting an economic and evolutionary approach throughout, Hayak examines the nature, origin, selection and development of the differing moralities of socialism and the market order; he recounts the extraordinary powers that 'the extended order' of the market, as he calls it, bestows on mankind, constituting and enabling the development of civilization.

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The Fatal Conceit

The Errors of Socialism

By F. A. Hayek

The University of Chicago Press

Copyright © 1988 F. A. Hayek
All rights reserved.
ISBN: 978-0-226-32066-3

Contents

Editorial Foreword,
Preface,
Introduction Was Socialism a Mistake?,
One: Between Instinct and Reason,
Two: The Origins of Liberty, Property and Justice,
Three: The Evolution of the Market: Trade and Civilisation,
Four: The Revolt of Instinct and Reason,
Five: The Fatal Conceit,
Six: The Mysterious World of Trade and Money,
Seven: Our Poisoned Language,
Eight: The Extended Order and Population Growth,
Nine: Religion and the Guardians of Tradition,
Appendices,
Editor's Acknowledgements,
Notes,
Bibliography,
Name Index,
Subject Index,


CHAPTER 1

BETWEEN INSTINCT AND REASON


Consuetudo est quasi altera natura.

Cicero

Les lois de la conscience que nous disons naître de la nature, naissant de la coustume.

M. E. de Montaigne

Zwei Seelen wohnen, ach, in meiner Brust, Die eine will sich von der anderen trennen.

J. W. von Goethe


Biological and Cultural Evolution

To early thinkers the existence of an order of human activities transcending the vision of an ordering mind seemed impossible. Even Aristotle, who comes fairly late, still believed that order among men could extend only so far as the voice of a herald could reach (Ethics, IX, x), and that a state numbering a hundred thousand people was thus impossible. Yet what Aristotle thought impossible had already happened by the time he wrote these words. Despite his achievements as a scientist, Aristotle spoke from his instincts, and not from observation or reflection, when he confined human order to the reach of the herald's cry.

Such beliefs are understandable, for man's instincts, which were fully developed long before Aristotle's time, were not made for the kinds of surroundings, and for the numbers, in which he now lives. They were adapted to life in the small roving bands or troops in which the human race and its immediate ancestors evolved during the few million years while the biological constitution of homo sapiens was being formed. These genetically inherited instincts served to steer the cooperation of the members of the troop, a cooperation that was, necessarily, a narrowly circumscribed interaction of fellows known to and trusted by one another. These primitive people were guided by concrete, commonly perceived aims, and by a similar perception of the dangers and opportunities – chiefly sources of food and shelter – of their environment. They not only could hear their herald; they usually knew him personally.

Although longer experience may have lent some older members of these bands some authority, it was mainly shared aims and perceptions that coordinated the activities of their members. These modes of coordination depended decisively on instincts of solidarity and altruism – instincts applying to the members of one's own group but not to others. The members of these small groups could thus exist only as such: an isolated man would soon have been a dead man. The primitive individualism described by Thomas Hobbes is hence a myth. The savage is not solitary, and his instinct is collectivist. There was never a 'war of all against all'.

Indeed, if our present order did not already exist we too might hardly believe any such thing could ever be possible, and dismiss any report about it as a tale of the miraculous, about what could never come into being. What are chiefly responsible for having generated this extraordinary order, and the existence of mankind in its present size and structure, are the rules of human conduct that gradually evolved (especially those dealing with several property, honesty, contract, exchange, trade, competition, gain, and privacy). These rules are handed on by tradition, teaching and imitation, rather than by instinct, and largely consist of prohibitions ('shalt not's') that designate adjustable domains for individual decisions. Mankind achieved civilisation by developing and learning to follow rules (first in territorial tribes and then over broader reaches) that often forbade him to do what his instincts demanded, and no longer depended on a common perception of events. These rules, in effect constituting a new and different morality, and to which I would indeed prefer to confine the term 'morality', suppress or restrain the 'natural morality', i.e., those instincts that welded together the small group and secured cooperation within it at the cost of hindering or blocking its expansion.

I prefer to confine the term 'morality' to those non-instinctive rules that enabled mankind to expand into an extended order since the concept of morals makes sense only by contrast to impulsive and unreflective conduct on one hand, and to rational concern with specific results on the other. Innate reflexes have no moral quality, and 'sociobiologists' who apply terms like altruism to them (and who should, to be consistent, regard copulation as the most altruistic) are plainly wrong. Only if we mean to say that we ought to follow 'altruistic' emotions does altruism become a moral concept.

Admittedly, this is hardly the only way to use these terms. Bernard Mandeville scandalized his contemporaries by arguing that 'the grand principle that makes us social creatures, the solid basis, the life and support of all trade and employment without exception' is evil(1715/1924), by which he meant, precisely, that the rules of the extended order conflicted with innate instincts that had bound the small group together.

Once we view morals not as innate instincts but as learnt traditions, their relation to what we ordinarily call feelings, emotions or sentiments raises various interesting questions. For instance, although learnt, morals do not necessarily always operate as explicit rules, but may manifest themselves, as do true instincts, as vague disinclinations to, or distastes for, certain kinds of action. Often they tell us how to choose among, or to avoid, inborn instinctual drives.


It may be asked how restraints on instinctual demands serve to coordinate the activities of larger numbers. As an example, continued obedience to the command to treat all men as neighbours would have prevented the growth of an extended order. For those now living within the extended order gain from not treating one another as neighbours, and by applying, in their interactions, rules of the extended order – such as those of several property and contract – instead of the rules of solidarity and altruism. An order in which everyone treated his neighbour as himself would be one where comparatively few could be fruitful and multiply. If we were, say, to respond to all charitable appeals that bombard us through the media, this would exact a heavy cost in distracting us from what we are most competent to do, and likely only make us the tools of particular interest groups or of peculiar views of the relative importance of particular needs. It would not provide a proper cure for misfortunes about which we are understandably concerned. Similarly, instinctual aggressiveness towards outsiders must be curbed if identical abstract rules are to apply to the relations of all men, and thus to reach across boundaries – even the boundaries of states.

Thus, forming superindividual patterns or systems of cooperation required individuals to change their 'natural'...

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