Economics: Assess Hayek’s claim that the market is to be preferred to any system based on planning.

Assess Hayek’s claim that the market is to be preferred to any system based on planning.

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  • Created by: Sam Hale
  • Created on: 02-01-13 21:20

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Assess Hayek's claim that the market is to be preferred to any system based on
planning.

During one of her first Cabinet meetings as Prime Minister of the United Kingdom, Margaret
Thatcher "once famously slapped Hayek's The Constitution of Liberty on the table and
announced: 'This is what we believe…

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are lots of different companies making a good, and lots of different consumers wishing to
purchase this good, an equilibrium price and quantity of each good should eventually
emerge. This optimal price maximises efficiency: it gains the maximal amount of profit for all
companies in the market as well as…

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production line is a natural resource. Mined, grown, hunted or drilled, the business always
withdraws a resource from nature. Without careful planning on how much of these
resources are extracted, and how their withdrawal affects nature, widespread irreversible
environmental effects can take place. Oil and other fossil fuels are, for…

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socialism has taken its place" (Caldwell, 1997, p. 1857). This has opened new opportunities
for organisations owned by the public to thrive. The co-operative movement in the UK has
gone from strength to strength, showing that economic systems that are owned by the
customers and ran for their interests can…

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economic planners and applying pressure, as well as a suitable scrutiny process that is open
and accountable directly to the public.

Focus should also be brought upon what Hayek does not say in his The Road to Serfdom.
Earlier, we looked at how Hayek concedes that with regards to the…

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Caldwell, B., 1997. Hayek and Socialism. Journal of Economic Literature, 35(4), pp. 1856-1890.

Hayek, F. A., 1944. The Road to Serfdom. Chicago: University of Chicago Press.

Hayek, F. A., 1945. What Price a Planned Economy?. American Affairs - The Economic
Record, 3(3), pp. 178 - 182.

Hesselink, M. W., 2008.…

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