Tea Party Economics

Tea Party Economics

Key Quote

“By the end of The Constitution of Liberty, Hayek reveals himself to be much less of an absolutist in defense of unregulated competition than his followers. This should come as no surprise. In the Road to Serfdom Hayek telegraphed his acceptance of a state role in regulating the economy. Far from advocating a laissez faire approach to regulation, Hayek actually justifies a role for the state as the enforcer of a legal framework designed to control competition – he defends laws that mandate safe work environments and minimum wages, defends laws that prevent polluters from externalizing their costs onto their neighbor, and defends laws that penalize fraud and deception. He argues that state regulation is legitimate if it promotes competition, and illegitimate if is it is designed to stifle competition. It turns out that there is some middle ground between Hayek and Keynes after all.”

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Posted on

November 1, 2019