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Road to Serfdom

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F.A. Hayek’s The Road to Serfdom was written under the shadow of war in 1944. While the outcome of World War II was still in doubt, Hayek noticed a troubling trend in Western society. Lingering fears of the economic crash from 1929 couple with the rise of fascism and Nazism in Germany were leading people to embrace the philosophy of communism. Capitalism and free markets were viewed to be in the service of Germany’s fascism, leading to the rise of the Nazis. Central planning was seen as a remedy for the chaos of the free markets, which had recently plunged the world into the Great Depression. The ideals of free market capitalism were pit against those of fascism, socialism, and communism, and World War II became not just a war of nations, but also a war of political philosophy. Hayek set out to tout the virtues of freedom and classical liberal democracy, warning that all other roads only led to some form of slavery to the state. In the Road to Serfdom, Hayek links the different form of freedom together, arguing that the loss of freedom in either the personal, political, or economic realm inevitably leads to a loss of freedom in the others. A cascade effect occurs as more power is transferred to the government. For example, in a system such as communism, economic freedom is eschewed in favor of central planning. Difficult problems in society may be turned over to “experts” to solve rapidly rather than waiting for the consensus of elected officials, thus resulting in the loss of political freedom. As resources and labor are inefficiently moved around and reallocated, the loss of personal freedom follows as people are not free to choose their own profession. It is only the classical liberal democracy that allows the people to retain the most freedoms with the least government interference. However, a liberal democracy can also devolve into less free systems of government. While free markets and capitalism allow for great freedom, they only account for equal opportunities, not equal outcomes. This disparity in outcomes can lead many to decry the lack of social justice and fairness, and call on government to intervene. While Hayek does not dismiss the necessity of a minimal amount of government regulation, a framework surrounding the free market, too much government intervention will lead to a loss of personal or economic freedom. Increasing government intervention in the free market to disperse social justice and fairness – in essence the government choosing winners and losers – amounts to a fringe attempt at a planned economy. It is competition, Hayek asserts, not government planning that is the most effective and efficient way to organize scarce resources without requiring some form of arbitrary coercion or threat of force. In keeping with Hayek’s philosophy, Northwood University finds its foundations in a belief in liberal democracy, free markets, and personal freedom and responsibility. The role of the individual is key in securing the freedoms described by Hayek. Personal responsibility needs to be exercised in managing personal affairs, navigating the markets, and choosing our leaders. When personal responsibility is abdicated in favor of welfare, or corporate responsibility is forgotten under the “too big to fail” mantra, government will sweep in to fill the void. As government grows, individual freedoms will shrink. It is our responsibility as individuals to expand our freedoms and minimize the role of government in our lives. Hayek’s Road to Serfdom was written at a time where the future of mankind was in doubt. No one nation or singular political philosophy had yet asserted their dominance over any other. Eventually, the United States filled that role, showcasing the very ideals that Hayek eloquently defended. By preserving free markets and personal freedoms in democracy, the United States became the most powerful and wealthiest nation in history. It is now up to the free individuals to maintain those personal, economic, and political freedoms against the slow slide to state control - down the road to serfdom.

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