Friedrich von Hayek and the birth of neo-liberalism

  What is the nature of Constant's distinction between ancient and modern liberty and how does this distinction inform the constitutional recommendations Constant makes in his Principles of Politics? How important do you think Constant's arguments are? By the mid-twentieth century it appeared that ‘new liberalism’ had triumphed intellectually and politically, with welfare economics firmly established and laissez-faire attitudes on the wane. A fierce challenge to this consensus was led by F. A. von Hayek, whose work covers not only politics but also economics, philosophy, and psychology. Hayek offered a reformulation of classical liberalism that anticipated the neo-liberalism of the New Right. Given the current dominance of neo-liberal ideas and policies, Hayek can be seen as one of the most influential thinkers of the twentieth century. His work raises questions about the merits and flaws of classical liberalism, and liberalism’s relation to socialism and conservatism. Seminar Questions • How does Hayek define the distinction between old and new conceptions of liberty? • On what grounds does Hayek criticise planning? • On what grounds does Hayek advocate liberalism? • What is the substance of Hayek’s critique of socialism, and is it convincing? Is he right to link socialism with Nazism and totalitarianism? • What, if anything, is distinctive about Hayek’s liberalism? Key reading F Hayek The Road to Serfdom Additional reading F Hayek, The Constitution of Liberty F Hayek Individualism and Economic Order F Hayek Studies in Philosophy, Politics and Economics F Hayek New Studies in Philosophy, Politics, Economics and the History of Ideas F Hayek Law, Legislation, and Liberty: A New Statement of the Liberal Principles of Justice and Political Economy F Hayek The Fatal Conceit: The Errors of Socialism F Hayek Hayek on Hayek A Gamble Hayek: The Iron Cage of Liberty [probably the best introduction to Hayek, from a critical but knowledgeable standpoint] J GrayHayek on Liberty C Kukathas Hayek and Modern Liberalism E Feser (ed) The Cambridge Companion to Hayek (wide-ranging essays on various aspects of Hayek’s thought – strongly recommended) R KleyHayek’s Social and Political Thought N Barry Hayek’s Social and Economic Philosophy M Forsyth ‘Hayek’s Bizarre Liberalism: A Critique’, Political Studies 36:2 (1988) C PetsoulasHayek’s Liberalism and Its Origins R Bellamy ‘“Dethroning Politics”: Liberalism, Constitutionalism and Democracy in the Thought of F. A. Hayek’, British Journal of Political Science 24:4 (1994) H GissurarsonHayek’s Conservative Liberalism S Brittan Capitalism with a Human Face, chapter 6 S Horwitz ‘From The Sensory Order to the Liberal Order: Hayek’s Non-rationalist Liberalism’, Review of Austrian Economics 13 (2000) B Caldwell Hayek’s Challenge: An Intellectual Biography of F A Hayek Nicholas Wapshott, Keynes Hayek: The Clash that Defined Modern Economics