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Friedrich Hayek

94 quotes

“I don't believe that we shall ever have a good money again before we take the thing out of the hands of government, and since we can't take them violently out of the hands of government, all we can do is by some sly roundabout way introduce something they can't stop.”
Friedrich Hayek (1899–1992) first seen 1984 wikiquote, CC BY-SA 4.0 source
Recorded in: Interview with James U. Blanchard III, 1984. This quote is from the video recording but does not appear in the transcript (at 19:23 in the youtube copy here).
“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 (1899–1992) first seen 1984 wikiquote, CC BY-SA 4.0 source
Recorded in: Jobs: the basic truths we have cast aside", The Times (7 August 1984), p. 10
“The socialist argument continues despite its many defeats―on the impossibility of economic calculation under collectivism, the fallacious claims for the use of markets under socialism, the incompatibility of liberty and state direction of the economy, and many others. The argument is being won by the new liberals of the late 20th century. But many people still do not understand it. And most on the Left continue to resist it.”
Friedrich Hayek (1899–1992) first seen 1985 wikiquote, CC BY-SA 4.0 source
Recorded in: Socialism, Liberalism, and the Young" in Arthur Sheldon (ed.), The ‘New Right’ Enlightenment: The Spectre that Haunts the Left (1985)
“I am now profoundly convinced of what I had only hinted at before, namely, that the struggle between the advocates of a free society and the advocates of the socialist system is not a moral but an intellectual conflict. Thus socialists have been led by a very peculiar development to revive certain primitive instincts and feelings which in the course of hundreds of years had been practically suppressed by commercial or mercantile morals, which by the middle of the last century had come to govern the world economy.”
Friedrich Hayek (1899–1992) first seen 1986 wikiquote, CC BY-SA 4.0 source
Recorded in: The Moral Imperative of the Market", in The Unfinished Agenda: Essays on the Political Economy of Government Policy in Honour of Arthur Seldon (1986)
“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 (1899–1992) first seen 1991 wikiquote, CC BY-SA 4.0 source
Recorded in: 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
“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, and to some extent defend, a tradition that had civilised the world.”
Friedrich Hayek (1899–1992) first seen 1983 wikiquote, CC BY-SA 4.0 source
Recorded in: The Rediscovery of Freedom: Personal Recollections" (1983), published in The Fortunes of Liberalism (1992)
“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 (1899–1992) said by 1992 at the latest wikiquote, CC BY-SA 4.0 source
“The reasons why the adoption of a system of central planning necessarily produces a totalitarian system are fairly simple. Whoever controls the means must decide which ends they are to serve. As under modern conditions control of economic activity means control of the material means for practically all our ends, it means control over nearly all our activities. The nature of the detailed scale of values which must guide the planning makes it impossible that it should be determined by anything like democratic means. The director of the planned system would have to impose his scale of values, his hierarchy of ends, which, if it is to be sufficient to determine the plan, must include a definite order of rank in which the status of each person is laid down. If the plan is to succeed or the planner to appear successful, the people must be made to believe that the objectives chosen are the right ones. Every criticism of the plan or the ideology underlying it must be treated as sabotage. There can be no freedom of thought, no freedom of the Press, where it is necessary that everything should be governed by a single system of thought. In theory Socialism may wish to enhance freedom, but in practice every kind of collectivism consistently carried thought must produce the characteristic features which Fascism, Nazism, and Communism have in common. Totalitarianism is nothing but consistent collectivism, the ruthless execution of the principle that 'the whole comes before the individual' and the direction of all members of society by a single will supposed to represent the 'whole'.”
Friedrich Hayek (1899–1992) first seen 1941 wikiquote, CC BY-SA 4.0 source
Recorded in: Planning, Science and Freedom", Nature 148 (15 November 1941), also available as "Planning, Science, and Freedom," Mises Daily (Auburn, AL: The Ludwig von Mises Institute, 27 September 2010)
“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 (1899–1992) said by 1992 at the latest wikiquote, CC BY-SA 4.0 source
“[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.”
Friedrich Hayek (1899–1992) first seen 1961 wikiquote, CC BY-SA 4.0 source
Recorded in: Conversation with Systematic Liberalism," Forum (September 1961).
“What I expect is that inflation will drive the Western countries into a planned economy via price controls. Nobody will dare to stop inflation because to discontinue inflation will inevitably cause extensive unemployment. So assuming inflation stops it will quickly be resumed. People will find they can't live with constantly rising prices and will try to control it by price controls and that of course is the end of the market system and the end of the free political order. So I think it will be via the attempt to regress the effects of a continued inflation that the free market and free institutions will disappear. It may still take ten years, but it doesn't matter much for me because in ten years I hope I shall be dead.”
Friedrich Hayek (1899–1992) first seen 1975 wikiquote, CC BY-SA 4.0 source
Recorded in: Economics, Politics and Freedom: An Interview with F. A. Hayek", Reason (February 1975), p. 12, quoted in Alan Ebenstein, Friedrich Hayek: A Biography (2001), p. 258
“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 (1899–1992) first seen 1975 wikiquote, CC BY-SA 4.0 source
Recorded in: Interview on "Meet the Press" (22 June 1975)
“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 (1899–1992) first seen 1977 wikiquote, CC BY-SA 4.0 source
Recorded in: Interview with Thomas W. Hazlett in May of 1977, as published in "The Road to Serfdom, Forseeing the Fall", in Reason magazine (July 1992)
“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 (1899–1992) first seen 1977 wikiquote, CC BY-SA 4.0 source
Recorded in: Remembering My Cousin, Ludwig Wittgenstein", Encounter (August 1977). Page 20.
“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.”
Friedrich Hayek (1899–1992) first seen 1978 wikiquote, CC BY-SA 4.0 source
Recorded in: 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)
“I suggested before that the whole of economic history could be rewritten in terms of this gradual suppression of the primitive instincts by what we very mistakenly call “artificial” rules. Of course, they are not in the strict sense artificial. Nobody ever invented them. They were not the result of design. The new manners of conduct were not adopted because anybody thought they were better. They were adopted because somebody who acted on them profited from it and his group gained from it, and so these rules, without anybody understanding them—that is very important for the later part of my argument—without anybody understanding in what way they benefited their community, gradually came to be generally accepted.”
Friedrich Hayek (1899–1992) first seen 1978 wikiquote, CC BY-SA 4.0 source
Recorded in: 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)
“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 (1899–1992) first seen 1978 wikiquote, CC BY-SA 4.0 source
Recorded in: Letter to The Times (11 July 1978), p. 15
“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 (1899–1992) first seen 1978 wikiquote, CC BY-SA 4.0 source
Recorded in: Letter to The Times (3 August 1978), p. 15
“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 (1899–1992) first seen 1978 wikiquote, CC BY-SA 4.0 source
Recorded in: Conversation with Chitester (1978); published in Nobel Prize-Winning Economist: Friedrich A. von Hayek (1983), p. 490
“The misconception that costs determined prices prevented economists for a long time from recognizing that it was prices which operated as the indispensable signals telling producers what costs it was worth expending on the production of the various commodities and services, and not the other way around. It was the costs which they had expended which determined the prices of things produced.It was this crucial insight which finally broke through and established itself about a hundred years ago through the so-called marginal revolution in economics.The chief insight gained by modern economists is that the market is essentially an ordering mechanism, growing up without anybody wholly understanding it, that enables us to utilize widely dispersed information about the significance of circumstances of which we are mostly ignorant. However, the various planners (and not only the planners in the socialist camp) and dirigists have still not yet grasped this.”
Friedrich Hayek (1899–1992) first seen 1978 wikiquote, CC BY-SA 4.0 source
Recorded in: Coping with Ignorance," The Ludwig von Mises Memorial Lecture, Originally published in Imprimis 7 (Hillsdale, Michigan: Hillsdale College, July 1978). Later reprinted in Cheryl A. Yurchis (ed.) Champions of Freedom (The…
“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 (1899–1992) first seen 1978 wikiquote, CC BY-SA 4.0 source
Recorded in: Coping with Ignorance," The Ludwig von Mises Memorial Lecture, Originally published in Imprimis 7 (Hillsdale, Michigan: Hillsdale College, July 1978). Later reprinted in Cheryl A. Yurchis (ed.) Champions of Freedom (The…
“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 (1899–1992) said by 1992 at the latest wikiquote, CC BY-SA 4.0 source
“My whole concept of economics is based on the idea that we have to explain how prices operate as signals, telling people what they ought to do in particular circumstances. The approach to this problem has been blocked by a cost or labor theory of value, which assumes that prices are determined by the technical conditions of production only. The important question is to explain how the interaction of a great number of people, each possessing only limited knowledge, will bring about an order that could only be achieved by deliberate direction taken by somebody who has the combined knowledge of all these individuals. However, central planning cannot take direct account of particular circumstances of time and place. Additionally, every individual has important bits of information which cannot possibly be conveyed to a central authority in statistical form. In a system in which the knowledge of relevant data is dispersed among millions of agents, prices can act to coordinate the separate actions of different individuals. Given this context, it is intellectually not satisfactory to attempt to establish causal relations between aggregates or averages in the manner in which the discipline of macroeconomics has attempted to do. Individuals do not make decisions on the basis of partial knowledge of magnitudes such as the total amount of production, or the total quantity of money. Aggregative theorizing leads nowhere.”
Friedrich Hayek (1899–1992) said by 1992 at the latest wikiquote, CC BY-SA 4.0 source
“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 (1899–1992) said by 1992 at the latest wikiquote, CC BY-SA 4.0 source
“It seems to me that the future of peaceful international relations and the safety of persons in foreign countries would have been much better served if, after the Iranian Government placed itself outside the community of nations by approving the holding captive of the personnel of the United States embassy, the United States Government had at once sent an ultimatum saying that, unless every single member of the embassy staff were within 48 hours handed over unharmed to representatives of the United States Government at some place outside Iran, bombs would be falling at an increasing rate at the seat of the Iranian Government.”
Friedrich Hayek (1899–1992) first seen 1980 wikiquote, CC BY-SA 4.0 source
Recorded in: On the Iran hostage crisis; letter to The Times (12 January 1980), p. 13
“The newfangled word monetarism means of course no more than the good old “quantity theory of money”, as it was formulated in modern times by the late Professor Irving Fisher and reformulated by Professor Milton Friedman. Of this I said nearly 50 years ago in the first lecture I delivered in this country that “from a practical point of view, it would be one of the worst things which could befall us if the general public should ever again cease to believe in the elementary propositions of the quantity theory”. This was, however, unfortunately brought about by the seductive theories of Lord Keynes. I then said that it was in many respects a crude over-simplification, but the irrefutable chief content is still that inflation is always and everywhere the effect of an excessive supply of money and that it can be cured only by a restriction of its supply.”
Friedrich Hayek (1899–1992) first seen 1980 wikiquote, CC BY-SA 4.0 source
Recorded in: Letter to The Times (5 March 1980), p. 17
“Both altruism and solidarity are very strong instincts which guided man in the small group. We were serving known other persons when his efforts were directed to the needs of familiar people. Now we have grown as rich as we are because we have replaced this by a system where we no longer work for the known needs of known other people, and no longer use the known assistance of other people, but where our effort is completely guided by price signals, which for the individual means that I must use my resources for the maximum success of what resources is sacrificed for the purpose, but the justification is not my benefit but in this way I benefit my fellow man most. So it does happen that so far as commercial activities economic activities are concerned we will benefit our fellow man most if we are guided solely by the striving for gain. We are then completely free how to use what we have earned and there of course the desire for being altruistic come in very strongly, but not in the ordering principle of our society.”
Friedrich Hayek (1899–1992) first seen 1980 wikiquote, CC BY-SA 4.0 source
Recorded in: in The Levin interviews - Friedrich Hayek (31st May 1980)
“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 (1899–1992) first seen 1980 wikiquote, CC BY-SA 4.0 source
Recorded in: Interview in Silver & Gold Report, Vol. V, No. 20, (Late October 1980)
“It should surprise no one that the lost generation of British economists who had succumbed to the teachings of Lord Keynes should form a panicky mob when a reversal of the policies they had inspired reveals the damage they have done. ... Following their advice has induced a structure of employment that can be maintained only by accelerating inflation but will collapse only when it becomes a gallop and destroys any possibility of a rational use of resources. Nobody has ever claimed that so long as it is necessary to reduce inflation to get out of this vicious circle the effect can be anything but to destroy the particular employments created by past inflation. Only after inflation has been brought to a full stop can the market be expected to guide workers to jobs which can be maintained without accelerating inflation. All those who plead for “mild” inflation and oppose “too much” inflation are merely preparing the ground for a later depression.”
Friedrich Hayek (1899–1992) first seen 1981 wikiquote, CC BY-SA 4.0 source
Recorded in: Letter on the 364 economists who protested against the 1981 United Kingdom budget, printed in The Times (4 April 1981), p. 13
“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.”
Friedrich Hayek (1899–1992) first seen 1981 wikiquote, CC BY-SA 4.0 source
Recorded in: Interview in El Mercurio (1981)
“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 (1899–1992) first seen 1982 wikiquote, CC BY-SA 4.0 source
Recorded in: 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
“The social product which is now maintaining a human population of this world four or five hundred times as large as that which man could achieve in the natural hunting and gathering stage is owed only to the division of labor, skills, and knowledge. This division could never have been designed or planned, but it arose through and is now maintained by the guiding service of competitive market prices and wages that tell each person where its efforts can make the largest contribution to the total. These self-generating signals, which inform the individuals about the combined efforts of thousands of events of which they can have no direct information, bring about an adaptation of the individual efforts to the unknown. No central direction could achieve this adaptation because the knowledge of all the facts of which the market takes account is spread among thousands and cannot be known to any central authority. It is, of course, impossible to improve signals when one does not know what determines them. Wealth, which social justice would like to distribute as a reward for merit and need, is, therefore, due to the circumstance that the direction of individual efforts is guided by a choice between returns which depends largely on accidental circumstances of time and place and is effected but not conclusively determined by what the individual can know or do. Thus, the wealth which the advocates of social justice want to redistribute would not exist if social justice reigned. Social justice is a fraud, a promise to distribute what one would not have if one followed its bidding. Wealth just would not be there or would rapidly disappear if the ordering by the principles of the market that now guide its production were replaced by some others which would give to each that to which he imagines himself to be entitled.”
Friedrich Hayek (1899–1992) first seen 1983 wikiquote, CC BY-SA 4.0 source
Recorded in: The Muddle of the Middle", in Svetozar Pejovič (ed.), Philosophical and economic foundations of capitalism (1983)
“I believe you will be shocked by my stating this so bluntly because we are still guided instinctively by those inherited "natural" emotions. But I think we must recognize that we have become a worldwide, peaceful, and prosperous society by having learned to disregard those natural instincts and to follow instead certain abstract rules of honesty—rules establishing private property and ultimately codified in the form of private law. It is the rules of property and contract on which the growth of a worldwide, peaceful, and prosperous society was based. All these are traditional rules that evolved by a process of selection, which made those groups who followed the new rules more prosperous than other groups, and which thus came gradually to govern the civilised part of the world. 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 (1899–1992) first seen 1983 wikiquote, CC BY-SA 4.0 source
Recorded in: The Reactionary Character of the Socialist Conception", published in Knowledge, Evolution, and Society (1983)
“Our whole modern society, based on a far-ranging division of labour, is, however, essentially dependent on two factors that conflict with our natural instincts. The first is the assumption, implicit but not understood, that we can do more good to unknown people if we follow the impersonal signals of the market, which enable us to serve the needs of people whom we do not know and to make use of opportunities and facilities with which we have no direct acquaintance. The second is that for this purpose we can follow our own individual aims with freely chosen associates and are not bound to serve the concrete ends of the group into which we were born.”
Friedrich Hayek (1899–1992) first seen 1983 wikiquote, CC BY-SA 4.0 source
Recorded in: The Reactionary Character of the Socialist Conception", published in Knowledge, Evolution, and Society (1983)
“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 (1899–1992) first seen 1983 wikiquote, CC BY-SA 4.0 source
Recorded in: Interview with F. A. Hayek", in Cato Policy Report (February 1983)
“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. They make possible the adaptation of such actions to unknown circumstances and lead to the formation of an indefinitely expansible order which can develop only through group selection, that is, a selection of groups for common attributes possessed by them.”
Friedrich Hayek (1899–1992) first seen 1984 wikiquote, CC BY-SA 4.0 source
Recorded in: The Origins and Effects of Our Morals: A Problem for Science", in The Essence of Hayek (1984)
“It seems to me that my original plan is right, but I am afraid that I’ve come to the conclusion that politically, it is completely Utopian. Governments will never allow monetary competition, and even bankers do not understand the idea because they have all grown up in the system which is so completely dependent on central banks. So I think we need a roundabout way. After all, in the modern world, currency is no longer the most important money. Credit and credit cards are substitutes. While governments can stop people from issuing money, they can hardly stop them from opening accounts in something unless they introduce a complete system of exchange control. I do not expect that any bank will understand this idea. But I hope that one of the big dealers in raw materials will be prepared to open accounts which will be redeemable in so much of current moneys as are necessary to buy this list of raw materials. Through these accounts he can make his unit—call it the “solid”—the standard unit without it ever being used in circulation. People very soon will begin to keep their accounts in “solids”—the only thing which is trustworthy. Although it’s a thing where many people can compete, most of them will probably choose the same list of raw materials. If one major firm will start this, others will imitate it. So I think we can forget about existing money and existing banks, and gradually open a system of accounts which will displace the government money.”
Friedrich Hayek (1899–1992) first seen 1984 wikiquote, CC BY-SA 4.0 source
Recorded in: Interview with James U. Blanchard III, in Cato Policy Report (May/June 1984))
“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 (1899–1992) first seen 1985 wikiquote, CC BY-SA 4.0 source
Recorded in: in 1985 interview with John O'Sullivan
“I mean, it became particularly acute because Keynes, against his intentions, had stimulated the development of macroeconomics. And I was convinced that not only his particular conclusions, but the whole foundation of macroeconomics was wrong. So I wanted to demonstrate that we had to return to microeconomics, that this whole prejudice supported by the natural scientists that could deduce anything from measurable magnitudes, the effects of aggregates and averages, came to fascinate me much more. I felt in a way, that the thing which I am now prepared to do, I don’t know as there’s anybody else who can do this particular task. And I rather hoped that what I had done in capital theory would be continued by others. This was a new opening which was much more fascinating. The other would have meant working for a result which I already knew, but had to prove it. Which was very dull. The other thing was an open problem: How does economics really look like when you recognize it as the prototype of a new kind of science of complex phenomena which could not employ the simple model of mechanics or physics, but had to deal with what then I described as mere pattern predictions, certain limited prediction. That was so much more fascinating as an intellectual problem.”
Friedrich Hayek (1899–1992) first seen 1985 wikiquote, CC BY-SA 4.0 source
Recorded in: In a 1985 interview with Gary North and Mark Skousen, in Hayek on Hayek (1994)
“Altruism is an instinct we've inherited from the small society where we knew for whom we work, whom we serve. When you pass from this, as I like to call it, 'concrete society', where we are guided by what we see, to the abstract society which far transcends our range of vision, it becomes necessary that we are guided not by the knowledge of the effect of what we do, but by some abstract symbols. Now, the only symbol which tells us where we can make the best contribution is profit. And in fact by pursuing profit, we are as altruistic as we can possibly be, because we extend our concern to people who are beyond our range of personal conception. This is a condition which makes it possible to produce what I call an extended order, an order which is not determined by our aim, by our knowing what are the most urgent needs, but by an impersonal mechanism which by a system of communication puts a label on certain things which is fully impersonal.”
Friedrich Hayek (1899–1992) first seen 1985 wikiquote, CC BY-SA 4.0 source
Recorded in: 1985 interview with John O'Sullivan
“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 (1899–1992) first seen 1991 wikiquote, CC BY-SA 4.0 source
Recorded in: December 13, 1991, quoted in Friedrich Hayek: A Biography (2001) by Alan O. Ebenstein
“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 (1899–1992) said by 1992 at the latest wikiquote, CC BY-SA 4.0 source
Recorded in: Stephen Kresge and Leif Wenar (eds.), Hayek on Hayek: An Autobiographical Dialogue (London: Routledge, 1994), p. 86
“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.”
Friedrich Hayek (1899–1992) said by 1992 at the latest wikiquote, CC BY-SA 4.0 source
“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 (1899–1992) said by 1992 at the latest wikiquote, CC BY-SA 4.0 source