{"id":1184,"date":"2021-09-13T07:32:37","date_gmt":"2021-09-12T20:32:37","guid":{"rendered":"http:\/\/davidmhart.com\/wordpress\/?p=1184"},"modified":"2021-09-13T07:32:37","modified_gmt":"2021-09-12T20:32:37","slug":"hayek-and-spontaneous-order","status":"publish","type":"post","link":"http:\/\/davidmhart.com\/wordpress\/hayek-and-spontaneous-order\/","title":{"rendered":"Hayek and Spontaneous Order"},"content":{"rendered":"<p><img decoding=\"async\" src=\"http:\/\/davidmhart.com\/wordpress\/wp-content\/uploads\/2021\/09\/Hayek_LLL_TP300.jpg\"><\/p>\n<p>In the coming academic year I will be leading an online discussion on <a href=\"https:\/\/theihs.org\/academic-events\/faculty-and-graduate-discussion-colloquia\/ihs-discussion-colloquia\/hayek-and-spontaneous-order\/\">Hayek and Spontaneous Order<\/a> which is part of a series of <a href=\"https:\/\/theihs.org\/academic-events\/faculty-and-graduate-discussion-colloquia\/ihs-discussion-colloquia\/\">Discussion Colloquia<\/a> for graduate students organised by the Institute for Humane Studies. In this discussion we will focus on the work of a leading classical liberal whose work has become \u201ccanonical\u201d &#8211; in this case Friedrich Hayek (1899-1992)  and read a selection of his works alongside a more recent book which is related in some important and deep way.  The modern work which has been chosen is Finn Brunton, <em>Digital Cash: The Unknown History of the Anarchists, Utopians, and Technologists Who Created Cryptocurrency<\/em> (Princeton University Press, 2019).<\/p>\n<p>The discussion topics and readings are:<\/p>\n<p><strong>1.) The Structure of Mind and Choice<\/strong><\/p>\n<ul>\n<li>Reading: Hayek, <em>Law, Legislation, and Liberty, Vol. I Rules and Order<\/em> (London: Routledge and Kegan Paul, 1973). [See the analytical table of contents below]<\/li>\n<\/ul>\n<p><strong>2.) Action, Design, and Outcomes<\/strong><\/p>\n<ul>\n<li>Hayek, \u201cThe Use of Knowledge in Society\u201d (1945) which first appeared in <em>The American Economic Review<\/em>, 35 (4): 519\u2013530. Republished in <em>Individualism and Economic Order<\/em> (Chicago: University of Chicago Press, 1948). Chapter 4, pp. 77\u201391; and most recently in <em>The Market and Other Orders. Vol. XV of The Collected Works of F.A. Hayek. Edited by Bruce Caldwell<\/em> (The University of Chicago Press, 2014), pp. 93-104.<\/li>\n<li>Hayek, \u201cThe Results of Human Action but not of Human Design\u201d (1967) which first appeared in a Festschrift for Jacques Rueff <em>Les Fondements Philosophiques des Syst\u00e8mes Economiques<\/em> (Paris, 1967) republished in <em>Studies in Philosophy: Politics and Economics<\/em> (London: Routledge and Kegan Paul, 1967), pp. 96-105; and most recently in <em>The Market and Other Orders. Vol. XV of The Collected Works of F.A. Hayek. Edited by Bruce Caldwell<\/em> (The University of Chicago Press, 2014), pp. 293-303.<\/li>\n<li>Hayek, \u201cPrinciples of a Liberal Social Order\u201d (1966) which was given as a paper at the Tokyo Meeting of the Mont P\u00e9l\u00e8rin Society (Sept. 1966) and then published in <em>Il Politico<\/em> (Dec. 1966) and again in <em>Studies in Philosophy, Politics and Society<\/em> (1967), pp. 160\u201377.<\/li>\n<\/ul>\n<p><strong>3.) The Planner\u2019s Conceit<\/strong><\/p>\n<ul>\n<li>Hayek, <em>The Fatal Conceit: The Errors of Socialism. The Collected Works of F. A. Hayek.<\/em> W. W. Bartley, III (ed.). (Chicago: University of Chicago Press, 1988).<\/li>\n<\/ul>\n<p><strong>4.) Hayek Today: Tech, Money, &amp; Culture<\/strong><\/p>\n<ul>\n<li>Finn Brunton, <em>Digital Cash: The Unknown History of the Anarchists, Utopians, and Technologists Who Created Cryptocurrency<\/em> (Princeton University Press, 2019).<\/li>\n<\/ul>\n<p>Some additional modern attempts to apply Hayek\u2019s insights about spontaneous orders in new areas, include:<\/p>\n<ul>\n<li>on the evolution of the family: Steven Horwitz, <em>Hayek\u2019s Modern Family: Classical Liberalism and the Evolution of Social Institutions<\/em> (Palgrave Macmillan, 2015).<\/li>\n<li>on private governance such as stock markets: Edward P. Stringham, <em>Private Governance: Creating Order in Economic and Social Life<\/em> (Oxford University Press, 2015).<\/li>\n<li>on self-governance by groups like pirates: Peter T. Leeson, <em>The Invisible Hook: The Hidden Economics Of Pirates<\/em> (Princeton University Press, 2009); and more generally <em>Anarchy Unbound: Why Self-governance Works Better than You Think<\/em> (Cambridge: Cambridge University Press, 2014).<\/li>\n<li>on spontaneous social orders in prisons: David B. Skarbek, <em>The Social Order of the Underworld: How Prison Gangs Govern the American Penal System<\/em> (New York: Oxford University Press, 2014).<\/li>\n<li>on the spontaneous emergence of law itself: see the anthology of essays <em>Research Handbook on Austrian Law and Economics. Edited by Todd J. Zywicki and Peter J. Boettke<\/em> (Cheltenham, UK: Edward Elgar, 2017). And for the contrary argument that, as an \u201cOrdo-liberal\u201d, Hayek believed the legal and constitutional framework within which the spontaneous ordering of the market took place, was completely different from a market and thus had to be rationally \u201cconstructed\u201d and \u201cplanned\u201d by legislators, see Viktor Vanberg, \u201cHayek\u2019s Legacy and the Future of Liberal Thought: Rational Liberalism versus Evolutionary Agnosticism\u201d <em>Cato Journal,<\/em> Vol. 14, No. 2 (Fall 1994). <a href=\"https:\/\/www.cato.org\/sites\/cato.org\/files\/serials\/files\/cato-journal\/1994\/11\/cj14n2-2.pdf\">Online<\/a>.<\/li>\n<\/ul>\n<h2>Recommended Additional Reading<\/h2>\n<p><strong>Introductions to and Overviews of Hayek\u2019s life and work:<\/strong><\/p>\n<p>Peter Boettke, \u201cFriedrich August von Hayek (1899\u20131992),\u201d in <em>Handbook on the History of Economic Analysis Volume I: Great Economists Since Petty and Boisguilbert, ed. Gilbert Faccarello and Heinz D. Kurz<\/em> (Cheltenham: Edward Elgar Publishing, 2016), pp. 557\u2013567.<\/p>\n<p>David Schmidtz and Pedter Boettke, \u201cFriedrich Hayek\u201d <em>Stanford Encyclopedia of Philosophy<\/em> (2012) online at <a href=\"https:\/\/plato.stanford.edu\/entries\/friedrich-hayek\/\">Friedrich Hayek (Stanford Encyclopedia of Philosophy)<\/a>.<\/p>\n<p>Donald J. Boudreaux, <em>The Essential Hayek<\/em> (Fraser Institute, 2014). Essential Scholars (Fraser Institute) &#8211; <a href=\"https:\/\/www.essentialscholars.org\">Essential Scholars |<\/a><\/p>\n<p>Steven Horwitz, <em>Austrian Economics. An Introduction<\/em> (Washington , DB.C.: Cato Institute, 2020). Online at <a href=\"https:\/\/www.libertarianism.org\/books\/austrian-economics-introduction\">Austrian Economics: An Introduction | Libertarianism.org<\/a>.<\/p>\n<p><strong>Entries in the EoL (2008)<\/strong><\/p>\n<ul>\n<li>Peter J. Boettke,  <a href=\"https:\/\/www.libertarianism.org\/topics\/economics-austrian-school\">Economics, Austrian School of: A Libertarianism.org Guide<\/a><\/li>\n<li>Ronald Hamowy, <a href=\"https:\/\/www.libertarianism.org\/topics\/hayek-friedrich-1889-1992\">Hayek, Friedrich A. (1889-1992): A Libertarianism.org Guide<\/a><\/li>\n<li>Norman Barry, <a href=\"https:\/\/www.libertarianism.org\/topics\/spontaneous-order\">Spontaneous Order: A Libertarianism.org Guide<\/a><\/li>\n<\/ul>\n<p><strong>More Specialised Monographs<\/strong><\/p>\n<p>Peter Boettke has compiled (2018) a list of PhDs and journal articles on Hayek: <a href=\"https:\/\/ppe.mercatus.org\/essays\/living-bibliography-works-hayek\">A Living Bibliography of Works on Hayek | Mercatus Center: F. A. Hayek Program<\/a>.<\/p>\n<p>Peter Boettke, <em>F. A. Hayek: Economics, Political Economy and Social Philosophy<\/em> (New York: Palgrave Macmillan, 2018).<\/p>\n<p>[Boettke, Coyne, and Storr] <em>Interdisciplinary Studies of the Market Order. New Applications of Market Process Theory. Edited by Peter J. Boettke, Christopher J. Coyne, and Virgil Henry Storr<\/em> (London: Rowman &amp; Littlefield, 2017).<\/p>\n<p>Bruce Caldwell, <em>Hayek\u2019s Challenge: An Intellectual Autobiography of F. A. Hayek<\/em>  (Chicago: University of Chicago Press. 2004).<\/p>\n<p>[Coyne and Storr] <em>New Thinking in Austrian Political Economy. Edited by Christopher J. Coyne and Virgil Henry Storr. Advances in Austrian Economics Volume 19<\/em>. (Bingley U.K.: Emerald Publishing, 2015).<\/p>\n<p>[Farrant, Andrew] <em>Hayek, Mill and the Liberal Tradition. Edited by Andrew Farrant<\/em> (London: Routledge Studies in the History of Economics, 2010).<\/p>\n<p>[Feser] <em>The Cambridge Companion to Hayek. Edited by Edward Feser<\/em> (Cambridge University Press, 2006)<\/p>\n<p>[McNamara and Hunt] <em>Liberalism, Conservatism, and Hayek\u2019s Idea of Spontaneous Order. Eds.  P. McNamara and L. Hunt<\/em> (New York: Palgrave Macmillan, 2007).<\/p>\n<p>[Peart and Levy] <em>F. A. Hayek and the Modern Economy. Economic Organization and Activity. Edited by Sandra J. Peart and David M. Levy<\/em> (Palgrave Macmillan, 2013).<\/p>\n<p>[Zywicki and Boettke] <em>Research Handbook on Austrian Law and Economics. Edited by Todd J. Zywicki and Peter J. Boettke<\/em> (Cheltenham, UK: Edward Elgar, 2017).<\/p>\n<p><strong>The Collected Works of Hayek<\/strong><\/p>\n<p><em>The Collected Works of Hayek<\/em> ed. Bruce Caldwell (University of Chicago Press). Proposed volumes [The plan is provisional. See the current list <a href=\"https:\/\/press.uchicago.edu\/Misc\/Chicago\/320685.html\">The Plan of the Collected Works of F. A. Hayek \u2014 published and planned titles<\/a>. ]<\/p>\n<ul>\n<li>University of Chicago Press &#8211; <a href=\"https:\/\/press.uchicago.edu\/ucp\/books\/series\/CWFAH.html\">Book Series: The Collected Works of F. A. Hayek<\/a><\/li>\n<\/ul>\n<ol>\n<li>Volume I The Fatal Conceit: The Errors of Socialism (1988)<\/li>\n<li>Volume II The Road to Serfdom: Text and Documents\u2014The Definitive Edition (2007)<\/li>\n<li>Volume III The Trend of Economic Thinking: Essays on Political Economists and Economic History (1991)<\/li>\n<li>Volume IV The Fortunes of Liberalism: Essays on Austrian Economics and the Ideal of Freedom (1992)<\/li>\n<li>Volume V Good Money, Part I: The New World (1999)<\/li>\n<li>Volume VI Good Money, Part II: The Standard (1999)<\/li>\n<li>Volume VII Business Cycles, Part I (2012)<\/li>\n<li>Volume VIII Business Cycles, Part II (2012)<\/li>\n<li>Volume IX Contra Keynes and Cambridge: Essays, Correspondence (1995)<\/li>\n<li>Volume X Socialism and War: Essays, Documents, Reviews (1997)<\/li>\n<li>Volume XI Capital and Interest (2015)<\/li>\n<li>Volume XII The Pure Theory of Capital (2007)<\/li>\n<li>Volume XIII Studies on the Abuse and Decline of Reason: Text and Documents (2010)<\/li>\n<li>Volume XIV The Sensory Order and Other Essays (2017)<\/li>\n<li>Volume XV The Market and Other Orders (2013)<\/li>\n<li>Volume XVI Hayek on Mill: The Mill- Taylor Friendship and Related Writings (2014)<\/li>\n<li>Volume XVII The Constitution of Liberty: The Definitive Edition (2011)<\/li>\n<li>Volume XVIII Essays on Liberty and Economics<\/li>\n<li>Volume XIX Law, Legislation and Liberty<\/li>\n<li>Supplement Hayek on Hayek: An Autobiographical Dialogue (1994)<\/li>\n<\/ol>\n<p><strong>The Analytical Table of Contents of the three volumes of <em>Law, Legislation, and Liberty<\/em> (1973-79)<\/strong><\/p>\n<p>All three volumes were published as a single volume with corrections and a revised preface in 1982 by Routledge &amp; Kegan Paul. It also contained a combine Table of Contents, Index of Authors Cited, and Subject Index. The combined ToC is below:<\/p>\n<p><em>Law, Legislation and Liberty: A new statement of the liberal principles of justice and political economy<\/em> (London: Routledge &amp; Kegan Paul, 1982, 1998).<\/p>\n<p>Vol. 1 <em>Rules and Order<\/em> first published 1973<br \/>\nVol. 2 <em>The Mirage of Social Justice<\/em> first published 1976<br \/>\nVol. 3 <em>The Political Order of a Free People<\/em> first published 1979<\/p>\n<p>First published in one volume with corrections and revised preface in 1982 by Routledge &amp; Kegan Paul Ltd.<\/p>\n<h2>Volume 1. RULES AND ORDER<\/h2>\n<p>CONSOLIDATED PREFACE<\/p>\n<p>INTRODUCTION xv<\/p>\n<p>1 REASON AND EVOLUTION 8<br \/>\n1. Construction and evolution 8<br \/>\n2. The tenets of Cartesian rationalism 9<br \/>\n3. The permanent limitations of our factual knowledge 11<br \/>\n4. Factual knowledge and science 15<br \/>\n5. The concurrent evolution of mind and society: the role of rules 17<br \/>\n6. The false dichotomy of \u2018natural\u2019 and \u2018artificial\u2019 20<br \/>\n7. The rise of the evolutionary approach 22<br \/>\n8. The persistence of constructivism in current thought 24<br \/>\n9. Our anthropomorphic language 26<br \/>\n10. Reason and abstraction 29<br \/>\n11. Why the extreme forms of constructivist rationalism regularly lead to a revolt against reason 31<\/p>\n<p>2 COSMOS AND TAXIS 35<br \/>\n1. The concept of order 35<br \/>\n2. The two sources of order 36<br \/>\n3. The distinguishing properties of spontaneous orders 38<br \/>\n4. Spontaneous orders in nature 39<br \/>\n5. In society, reliance on spontaneous order both extends and limits our powers of control 41<br \/>\n6. Spontaneous orders result from their elements obeying certain rules of conduct 43<br \/>\n7. The spontaneous order of society is made up of individuals and organizations 46<br \/>\n8. The rules of spontaneous orders and the rules of organization 48<br \/>\n9. The terms \u2018organism\u2019 and \u2018organization\u2019 52<\/p>\n<p>3 PRINCIPLES AND EXPEDIENCY 55<br \/>\n1. Individual aims and collective benefits 55<br \/>\n2. Freedom can be preserved only by following principles and is destroyed by following expediency 56<br \/>\n3. The \u2018necessities\u2019 of policy are generally the consequences of earlier measures 59<br \/>\n4. The danger of attaching greater importance to the predictable rather than to the merely possible consequences of our actions 61<br \/>\n5. Spurious realism and the required courage to consider utopia 62<br \/>\n6. The role of the lawyer in political evolution 65<br \/>\n7. The modern development of law has been guided largely by false economics 67<\/p>\n<p>4 THE CHANGING CONCEPT OF LAW 72<br \/>\n1. Law is older than legislation 72<br \/>\n2. The lessons of ethology and cultural anthropology 74<br \/>\n3. The process of articulation of practices 76<br \/>\n4. Factual and normative rules 78<br \/>\n5. Early law 81<br \/>\n6. The classical and the medieval tradition 82<br \/>\n7. The distinctive attributes of law arising from custom and precedent 85<br \/>\n8. Why grown law requires correction by legislation 88<br \/>\n9. The origin of legislative bodies 89<br \/>\n10. Allegiance and sovereignty 91<\/p>\n<p>5 NOMOS: THE LAW OF LIBERTY 94<br \/>\n1. The functions of the judge 94<br \/>\n2. How the task of the judge differs fro In that of the head of an organization 97<br \/>\n3. The aim of jurisdiction is the maintenance of an ongoing order of actions 98<br \/>\n4. \u2018Actions towards others\u2019 and the protection of expectations 101<br \/>\n5. In a dynamic order of actions only some expectations can be protected 102<br \/>\n6. The maximal coincidence of expectations is achieved by the delimitation of protected domains 106<br \/>\n7. The general problem of the effects of values on facts 110<br \/>\n8. The \u2018purpose\u2019 of law 112<br \/>\n9. The articulations of the law and the predictability of judicial decisions 115<br \/>\n10. The function of the judge is confined to a spontaneous order 118<br \/>\n11. Conclusions 122<\/p>\n<p>6 THESIS: THE LAW OF LEGISLATION 124<br \/>\n1. Legislation originates from the necessity of establishing rules of organization 124<br \/>\n2. Law and statute-the enforcement of law and the execution of commands 126<br \/>\n3. Legislation and the theory of the separation of powers 128<br \/>\n4. The governmental functions of mrepresentative assemblies 129<br \/>\n5. Private law and public law 131<br \/>\n6. Constitutional law 134<br \/>\n7. Financial legislation 136<br \/>\n8. Administrative law and the police power 137<br \/>\n9. The \u2018measures\u2019 of policy 139<br \/>\n10. The transformation of private law into public law by \u2019social\u2019 legislation 141<br \/>\n11. The mental bias of a legislature preoccupied with government 143<\/p>\n<p>NOTES 145<\/p>\n<h2>Volume 2. THE MIRAGE OF SOCIAL JUSTICE<\/h2>\n<p>7 GENERAL WELFARE AND PARTICULAR PURPOSES<br \/>\n1. In a free society the general good consists principally in the facilities for the pursuit of unknown purposes 1<br \/>\n2. The general interest and collective goods 6<br \/>\n3. Rules and ignorance 8<br \/>\n4. The significance of abstract rules in a world in which most of the particulars are unknown 11<br \/>\n5. Will and opinion, ends and values, commands and rules, and other terminological issues 12<br \/>\n6. Abstract rules operate as ultimate values because they serve unknown particular ends 15<br \/>\n7. The constructivist fallacy of utilitarianism 17<br \/>\n8. All valid criticism or improvement of rules of conduct must proceed within a given system of rules 24<br \/>\n9. \u2018Generalization\u2019 and the test of universalizabiiity 27<br \/>\n10. To perform their functions rules must be applied throughout the long run 29<\/p>\n<p>8 THE QUEST FOR JUSTICE 31<br \/>\n1. Justice is an attribute of human conduct 31<br \/>\n2. Justice and the law 34<br \/>\n3. Rules of just conduct are generally prohibitions of unjust conduct 35<br \/>\n4. Not only the rules of just conduct, but also the test of their justice, are negative 38<br \/>\n5. The significance of the negative character of the test of injustice 42<br \/>\n6. The ideology of legal positivism 44<br \/>\n7. The \u2018pure theory of law\u2019 48<br \/>\n8. Law and morals 56<br \/>\n9. The \u2018law of nature\u2019 59<br \/>\n10. Law and sovereignty 61<\/p>\n<p>9 \u2018SOCIAL\u2019 OR DISTRIBUTIVE JUSTICE 62<br \/>\n1. The concept of \u2018social justice\u2019 62<br \/>\n2. The conquest of public imagination by \u2018social justice\u2019 65<br \/>\n3. The inapplicability of  the concept of justice to the results of a spontaneous process 67<br \/>\n4. The rationale of the economic game in which only the conduct of the players but not the result can be just 70<br \/>\n5. The alleged necessity of a belief in the justice of rewards 73<br \/>\n6. There is no \u2018value to society\u2019 75<br \/>\n7. The meaning of \u2018social\u2019 78<br \/>\n8. \u2018Social justice\u2019 and equality 80<br \/>\n9. \u2018Equality of opportunity\u2019 84<br \/>\n10. \u2018Social justice\u2019 and freedom under the law 85<br \/>\n11. The spatial range of \u2018social justice\u2019 88<br \/>\n12. Claims for compensation for distasteful jobs 91<br \/>\n13. The resentment of the loss of accustomed positions 93<br \/>\n14. Conclusions 96<\/p>\n<p>APPENDIX TO CHAPTER 9 JUSTICE AND INDIVIDUAL RIGHTS 101<\/p>\n<p>10 THE MARKET ORDER 0R CATALLAXY 107<br \/>\n1. The nature of the market order 107<br \/>\n2. A free society is a pluralistic society without a common hierarchy of ends 109<br \/>\n3. Though not a single economy, the Great Society is still held together by what vulgarly are called economic relations 112<br \/>\n4. The aim of policy in a society of free men cannot be a maximum of foreknown results but only an abstract order 114<br \/>\n5. The game of catallaxy 115<br \/>\n6. In judging the adaptations to changing circumstances comparisons of the new with the former position are irrelevant 120<br \/>\n7. Rules of just conduct protect only material domains and not market values 123<br \/>\n8. The correspondence of expectations is brought about by a disappointment of some expectations 124<br \/>\n9. Abstract rules of conduct can determine only chances and not particular results 126<br \/>\n10. Specific commands (\u2018interference\u2019) in a catallaxy create disorder and can never be just 128<br \/>\n11. The aim of law should be to improve equally the chances of all 129<br \/>\n12. The Good Society is one in which the chances of anyone selected at random are likely to be as great as possible 132<\/p>\n<p>11 THE DISCIPLINE OF ABSTRACT RULES AND THE EMOTIONS OF THE TRIBAL SOCIETY 133<br \/>\n1. The pursuit of unattainable goals may prevent the achievement of the possible 133<br \/>\n2. The causes of the revival of the organizational thinking of the tribe 134<br \/>\n3. The immoral consequences of morally inspired efforts 135<br \/>\n4. In the Great Society \u2018social justice\u2019 becomes a disruptive force 137<br \/>\n5. From the care of the most unfortunate to the protection of vested interests 139<br \/>\n6. Attempts to \u2018correct\u2019 the order of the market lead to its destruction 142<br \/>\n7. The revolt against the discipline of abstract rules 143<br \/>\n8. The morals of the open and of the closed society 144<br \/>\n9. The old conflict between loyalty and justice 147<br \/>\n10. The small group in the Open Society 149<br \/>\n11. The importance of voluntary associations 150<\/p>\n<p>NOTES 153<\/p>\n<h2>Volume 3. THE POLITICAL ORDER OF A FREE PEOPLE<\/h2>\n<p>12 MAJORITY OPINION AND CONTEMPORARY DEMOCRACY<br \/>\n1. The progressive disillusionment about democracy<br \/>\n2. Unlimited power the fatal effect of the prevailing form of democracy 3<br \/>\n3. The true content of the democratic ideal 5<br \/>\n4. The weakness of an elective assembly with unlimited powers 8<br \/>\n5. Coalitions of organized interests and the apparatus of para-government 13<br \/>\n6. Agreement on general rules and on particular measures 17<\/p>\n<p>13 THE DIVISION OF DEMOCRATIC POWERS 20<br \/>\n1. The loss of the original conception of the functions of a legislature 20<br \/>\n2. Existing representative institutions have been shaped by the needs of government, not of legislation 22<br \/>\n3. Bodies with powers of specific direction are unsuited for law-making 25<br \/>\n4. The character of existing \u2018legislatures\u2019 determined by their  governmental tasks 27<br \/>\n5. Party legislation leads to the decay of democratic society 31<br \/>\n6. The constructivistic superstition of sovereignty 33<br \/>\n7. The requisite division of the powers of representative assemblies 35<br \/>\n8. Democracy or demarchy? 38<\/p>\n<p>14 THE PUBLIC SECTOR AND THE PRIVATE SECTOR 41<br \/>\n1. The double task of government 41<br \/>\n2. Collective goods 43<br \/>\n3. The delimitation of the public sector 46<br \/>\n4. The independent sector 49<br \/>\n5. Taxation and the size of the public sector 51<br \/>\n6. Security 54<br \/>\n7. Government monopoly of services 56<br \/>\n8. Information and education 60<br \/>\n9. Other critical issues 62<\/p>\n<p>15 GOVERNMENT POLICY AND THE MARKET 65<br \/>\n1. The advantages of competition do not depend on it being \u2018perfect\u2019 65<br \/>\n2. Competition as a discovery procedure 67<br \/>\n3. If the factual requirements of \u2018perfect\u2019 competition are absent, it is not possible to make firms act \u2018as if\u2019 it existed 70<br \/>\n4. The achievements of the free market 74<br \/>\n5. Competition and rationality 75<br \/>\n6. Size, concentration and power 77<br \/>\n7. The political aspects of economic power 80<br \/>\n8. When monopoly becomes harmful 83<br \/>\n9. The problem of anti-monopoly legislation 85<br \/>\n10. Not individual, but group selfishness is the chief threat 89<br \/>\n11. The consequences of a political determination of the incomes of the different groups 93<br \/>\n12. Organizable and non-organizable interests 96<\/p>\n<p>16 THE MISCARRIAGE OF THE DEMOCRATIC IDEAL: A RECAPITUALATION 98<br \/>\n1. The miscarriage of the democratic ideal 98<br \/>\n2. A \u2018bargaining\u2019 democracy 99<br \/>\n3. The playball of group interests 99<br \/>\n4. Laws versus directions 100<br \/>\n5. Laws and arbitrary government 101<br \/>\n6. From unequal treatment to arbitrariness 102<br \/>\n7. Separation of powers to prevent unlimited government 104<\/p>\n<p>17 A MODEL CONSTITUTION 105<br \/>\n1. The wrong turn taken by the development of representative institutions 105<br \/>\n2. The value of a model of an ideal constitution 107<br \/>\n3. The basic principles 109<br \/>\n4. The two representative bodies with distinctive functions 111<br \/>\n5. Further observations on representation by age groups 117<br \/>\n6. The governmental assembly 119<br \/>\n7. The constitutional court 120<br \/>\n8. The general structure of authority 122<br \/>\n9. Emergency powers 124<br \/>\n10. The division of financial powers 126<\/p>\n<p>18 THE CONTAINMENT OF POWER AND THE DETHRONEMENT OF POLITICS 128<br \/>\n1. Limited and unlimited power 128<br \/>\n2. Peace, freedom and justice: the three great negatives 130<br \/>\n3. Centralization and decentralization 132<br \/>\n4. The rule of the majority versus the rule of laws approved by the majority 133<br \/>\n5. Moral confusion and the decay of language 135<br \/>\n6. Democratic procedure and egalitarian objectives 137<br \/>\n7. \u2018State\u2019 and \u2018society\u2019 139<br \/>\n8. A game according to rules can never know justice of treatment 141<br \/>\n9. The para-government of organized interests and the hypertrophy of government 143<br \/>\n10. Unlimited democracy and centralization 145<br \/>\n11. The devolution of internal policy to local government 146<br \/>\n12. The abolition of the government monopoly of services 147<br \/>\n13. The dethronement of politics 149<\/p>\n<p>EPILOGUE: THE THREE SOURCES OF HUMAN<br \/>\nVALUES 153<br \/>\n1. The errors of sociobiology 153<br \/>\n2. The process of cultural evolution 155<br \/>\n3. The evolution of self-maintaining complex systems 158<br \/>\n4. The stratification of rules of conduct 159<br \/>\n5. Customary rules and economic order 161<br \/>\n6. The discipline of freedom 163<br \/>\n7. The re-emergence of suppressed primordial instincts 165<br \/>\n8. Evolution, tradition and progress 168<br \/>\n9. The construction of new morals to serve old instincts: Marx 169<br \/>\n10. The destruction of indispensable values by scientific error: Freud 173<br \/>\n11. The tables turned 175<\/p>\n<p>NOTES 177<br \/>\nINDEX 0F AUTHORS CITED IN VOLUMES 1 &#8211; 3 209<br \/>\nSUBJECT INDEX TO VOLUMES 1-3 217<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the coming academic year I will be leading an online discussion on Hayek and Spontaneous Order which is part of a series of Discussion Colloquia for graduate students organised by the Institute for Humane Studies. In this discussion we will focus on the work of a leading classical liberal whose work has become \u201ccanonical\u201d &#8230; <a title=\"Hayek and Spontaneous Order\" class=\"read-more\" href=\"http:\/\/davidmhart.com\/wordpress\/hayek-and-spontaneous-order\/\" aria-label=\"Read more about Hayek and Spontaneous Order\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_import_markdown_pro_load_document_selector":0,"_import_markdown_pro_submit_text_textarea":"","footnotes":""},"categories":[77,79],"tags":[],"class_list":["post-1184","post","type-post","status-publish","format-standard","hentry","category-tradition","category-economics"],"acf":[],"_links":{"self":[{"href":"http:\/\/davidmhart.com\/wordpress\/wp-json\/wp\/v2\/posts\/1184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/davidmhart.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/davidmhart.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/davidmhart.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/davidmhart.com\/wordpress\/wp-json\/wp\/v2\/comments?post=1184"}],"version-history":[{"count":0,"href":"http:\/\/davidmhart.com\/wordpress\/wp-json\/wp\/v2\/posts\/1184\/revisions"}],"wp:attachment":[{"href":"http:\/\/davidmhart.com\/wordpress\/wp-json\/wp\/v2\/media?parent=1184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/davidmhart.com\/wordpress\/wp-json\/wp\/v2\/categories?post=1184"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/davidmhart.com\/wordpress\/wp-json\/wp\/v2\/tags?post=1184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}