Friedrich Von Hayek

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One of the most domineering and insightful economists of the 20th century, Friedrich Von Hayek, was responsible for such epic economic changes as inspiring Margaret Thatcher to end socialism in Great Britain and President Reagan to reverse rapid inflation and high unemployment in the United States. As a prominent figure in the Austrian School of Economics, Friedrich Von Hayek challenged his great rival, J.M. Keynes, like no other. A champion of free markets, Von Hayek’s philosophies were especially popular in the 1980s and 1990s. In my opinion, as teacher of economics and witness to current events, Von Hayek will again soar unchallenged as federal deficits continue to balloon and inflation returns with gusto. Though he shared many views with his friend and intellectual companion, Ludwig Von Mises, Friedrich Von Hayek had his own signature. Today, he remains famous for his early work in Monetary Cycle Theory. He is also renown for his "spontaneous order the concept that an harmonious, evolving order arises from the interaction of free markets, where self-serving buyers and sellers with limited knowledge run the show. This order, Hayek claimed, was not supported by a social planner (so Big Brother butt out!). Why is that? Hayek believed that even wise governments err. As Lord Acton (1834-1902), British historian, originally wrote: Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad man and that absolute power, corrupts absolutely. Hayek continued with his work on "evolving order linking it with his work on political and legal theory (e.g. 1960, 1973). In tackling the evolution of political, social, legal and economic institutions, Hayek is rightly conceived as one of the founding fathers of evolutionary economics. The inter-temporal structure of capital theory is perhaps Hayek’s ground breaking work. Not to mention his money and its effects on prices theory. One more theory of Hayek’s to consider is denationalization of Money.

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