Individualism and Economic Order: 9780226320939: Economics Books @ Amazon.com

Hayek digs to find the underlying principles of arguments, his and others. He succeeds. Takes serious thought and genuine determination. Worth it!

''Democracy and socialism,” De Tocqueville wrote, “have nothing in common but one word, equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.” (30)

''And Acton joined him in believing that “the deepest cause which made the French revolution so disastrous to liberty was its theory of equality” and that “the finest opportunity ever given to the world was thrown away, because the passion for equality made vain the hope for freedom.” (30)

These twelve essays vary, some historical, some psychological, some economic, some analysis of socialism.

The first ''Individualism - True and False'', reveals two uses of the word, ''individualism'', after mentioning the English use, he notes -

''This second and altogether different strand of thought, also known as individualism, is represented mainly by French and other Continental writers—a fact due, I believe, to the dominant role which Cartesian rationalism plays in its composition. The outstanding representatives of this tradition are the Encyclopedists, Rousseau, and the physiocrats; and, for reasons we shall presently consider, this rationalistic individualism always tends to develop into the opposite of individualism, namely, socialism or collectivism.''

He explains that Acton and Tocqueville refer to the first, English meaning. The other -

''It is because only the first kind of individualism is consistent that I claim for it the name of true individualism, while the second kind must probably be regarded as a source of modern socialism as important as the properly collectivist theories.'' (3)

I. INDIVIDUALISM: TRUE AND FALSE
II. ECONOMICS AND KNOWLEDGE
III. THE FACTS OF THE SOCIAL SCIENCES
IV. THE USE OF KNOWLEDGE IN SOCIETY
V. THE MEANING OF COMPETITION
VI. “FREE” ENTERPRISE AND COMPETITIVE ORDER
VII. SOCIALIST CALCULATION I: THE NATURE AND HISTORY OF THE PROBLEM
VIII. SOCIALIST CALCULATION II: THE STATE OF THE DEBATE (1935)
IX. SOCIALIST CALCULATION III: THE COMPETITIVE “SOLUTION”
X. A COMMODITY RESERVE CURRENCY
XI. THE RICARDO EFFECT
XII. THE ECONOMIC CONDITIONS OF INTERSTATE FEDERALISM
NOTES

''Adam Ferguson expressed it, “nations stumble upon establishments, which are indeed the result of human action but not the result of human design”; and that the spontaneous collaboration of free men often creates things which are greater than their individual minds can ever fully comprehend. This is the great discovery of classical political economy which has become the basis of our understanding not only of economic life but of most truly social phenomena.'' (7)

The free market system 'capitalism' was not invented, it was found already operating. What is this? How does it work? Why is this so much better? This was the work of the eighteenth century. Hayek adds his explanation here.

''It would be interesting to trace further the development of this social contract individualism or the “design” theories of social institutions, from Descartes through Rousseau and the French Revolution down to what is still the characteristic attitude of the engineers to social problems. Such a sketch would show how Cartesian rationalism has persistently proved a grave obstacle to an understanding of historical phenomena and that it is largely responsible for the belief in inevitable laws of historical development and the modern fatalism derived from this belief.'' (10)

Key theme in Hayek's writing.