MISES: Interdisciplinary Journal of Philosophy Law and Economics ISSN: 2318-0811 ISSN: 2594-9187 Instituto Ludwig von Mises - Brasil

Bastos, João Pedro Economics Against Tyranny: A Reassessment of the Liberal Order of Mises and Hayek MISES: Interdisciplinary Journal of Philosophy Law and Economics, vol. 7, no. 2, 2019, May-August, pp. 301-310 Instituto Ludwig von Mises - Brasil

DOI: 10.30800/mises.2019.v7.1205

Available in: http://www.redalyc.org/articulo.oa?id=586361733003

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Economics Against Tyranny: A Reassessment of the Liberal Order of Mises and Hayek

João Pedro Bastos*

Abstract: The present work analyses the writings of Mises and Hayek on the relation between a liberal order and a free market, and the role of economic theory in advancing the appreciation of democratic institutions, considering the context of their expositions. Subsequently, it tries to address the contemporary state of political and economic affairs in the light of their teachings, highlighting missing aspects in today’s public debate and what should be taken into account for a coherent defense of the liberal order. Keywords: Liberal order, peace, war, Ludwig von Mises, Friedrich A. Hayek.

A economia contra a tirania: uma reavaliação da ordem liberal de Mises e Hayek

Resumo: O presente trabalho analisa os escritos de Mises e Hayek sobre a relação entre a ordem liberal e livre mercado, bem como o papel da teoria econômica no avanço do reconhecimento das instituições democráticas, considerando o contexto de suas exposições. Posteriormente, tentamos tratar o estado atual dos assuntos políticos e econômicos à luz de seus ensinamentos, destacando os aspectos ausentes no debate público atual e que devem ser levados em consideração em uma defesa coerente da ordem liberal. Palavras-chave: Ordem liberal, paz, guerra, Ludwig von Mises, Friedrich A. Hayek.

La economía contra la tiranía: una reevaluación del orden liberal de Mises y Hayek

Resumen: El presente trabajo analiza los textos de Mises y Hayek sobre la relación entre el orden liberal y libe mercado, así como el papel de la teoría económica en el avance del reconocimiento de las instituciones democráticas, considerando el contexto de sus exposiciones. Posteriormente, intentamos tratar el estado actual de los asuntos políticos y económicos a la luz de sus enseñanzas, resaltando los aspectos ausentes en el debate público actual y que deben ser considerados en una defenza coherente del orden liberal. Palabras clave: Orden liberal, Paz, Guerra, Ludwig von Mises, Friedrich A. Hayek.

DOI: https://doi.org/10.30800/mises.2019.v7.1205

* João Pedro Bastos is an economist, serves at Instituto Atlantos’ Board of Directors and as an International Executive Board member at Students for Liberty. Email: [email protected]

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Introduction because it allows economic growth – as the corollary of liberal order is to take things Over the 20th century, economists backwards, and to leave democracies’ flank transcended the usual inquiries of technical wide open as institutional arrangements economics and re-engaged in the more broad other than democracy may allow the same debate on the role of liberal institutions for (or even better) conditions for growth. The a peaceful social order that marked the argument follows precisely the other way scholarship of Adam Smith and John Stuart around: free markets are an indispensable Mill. Ludwig von Mises and Friedrich Hayek and indissociable part of the liberal order, or are among the most prominent economists “[i]t is far more important to realize that only that devoted their time and their writings to within this system [capitalism] is democracy this subject. These discussions, however, by possible”, as Hayek had written (HAYEK, 1971, no means were taken apart from the economic p. 70). One can have free-markets without context. The liberal order and free markets a liberal order, but one cannot have a solid were subjects deeply tied by their concerns. liberal order without free-markets. What It should be taken into account the came to be known as the Hayek-Friedman present state of world politics and economic Hypothesis – that economic freedom is a performance seems to be inserted in another precondition of political freedom – found context; as it will be argued later, though, it supportive empirical evidence by Lawson only seems. For the first time in History, the and Clark, and Kapás and Czeglédi provided total GDP of countries rated “not free” by evidence that “economic freedom is a Freedom House will surpass that of Western necessary condition for maintaining political democracies, as reported by the International freedom” in countries with high levels of both Monetary Fund projections. Conversely, some (LAWSON; CLARK, 2010)1. may argue that the virtue of democracy as But again, although an essential and a required cornerstone for economic growth indissociable part of the liberal order, free has been dilapidated by present experiences markets are, after all, only a part of the whole; throughout the world. to take them as the founding ethos of a liberal What can be called autocratic capitalism society is an insufficient assessment of human has, so far, very much proven its effectiveness complexities and social institutions – Hayek on economic matters, as long-term economic himself has also argued that political freedom growth widely depends on stability – and plays a mutual role in preserving economic these regimes may supply stability like no freedom (HAYEK, 1971, p. 12), social virtues other democracy. Also, the reciprocal seems such as tolerance, to use an example cited to be true; Feng (1997) provided evidence that by Mises, are an indispensable feature for growth has a positive effect on the stability of guaranteeing peace (MISES, 2002, p. 56). regimes. As people became satisfied with their Additionally, Mises found that the rising wages, their jobs maintained and their cornerstone of a liberal order lied in private families fed within their own homes, “petty property; markets were a consequence of bourgeoisie” institutions like democracy and freedom of the press become less relevant. 1 For Kapás and Czeglédi (2018, p. 291) the quote refers But to take this proposition – that to what the authors call as a “weak interpretation” of democracy and the rule of law is desirable the Hayek-Friedman Hypothesis.

Diagramação e XML SciELO Publishing Schema: www.editoraletra1.com.br | [email protected] MISES: Revista Interdisciplinar de Filosofia, Direito e Economia 303 João Pedro Bastos enforceable property rights. To Hayek, the liberty actually were not ethical ones – it was enemy of the liberal order was scientism, not a matter of rights. Even for Mises – the and consequently the abuse of knowledge most effusive defender of property – did not – whether in economic matters in central usually express his defense of property as planning projects, or in the conduction on an unalienable right. His major concern was human affairs through positive legislation. regarding property as an institution: private Together, these three areas of knowledge property, or private ownership of the means contributed to a deeper understanding human of production. As he wrote (emphasis added) affair, and consequently, they were essential (MISES, 2002, p. 19): to promote a rational discussion toward a The program of liberalism, therefore, if consensus around the importance of a liberal condensed into a single word, would have order. to read: property, that is, private ownership These two authors provide a unique of the means of production (for in regard assessment of the intersection between to commodities ready for consumption, economic theory and the quest for a private ownership is a matter of course and is not disputed even by the socialists liberal society. Together, their writings can and communists). All the other demands provide not only important lessons for the of liberalism result from this fundamental maintenance of democratic institutions, but demand. also the role of economic theory in conserving these institutions. Therefore, to begin, we Take also, for instance, their arguments reassess previous writings by Mises and against socialism and other forms of planning. Hayek on the relation between the liberal Mises’s conversely stressed that the major order and free markets, and the context of problem was that the public ownership of their expositions. Subsequently, we try to the means of production unable economic address modern-day context in the light of calculation (MISES, 2008) – its an economic their teachings, highlighting missing aspects argument before anything else. The same of the today’s public debate that should be applies to Hayek, as his main argument taken into consideration in a coherent defense against socialism was an epistemological and of the liberal order. economic one (HAYEK, 1945). Both stressed the undesirable consequences of socialism and that socialism could not work prior to 1. Mises and Hayek: a Pragmatic saying that socialism was ethically wrong. Defense of Liberty Their arguments certainly had more Mises and Hayek are certainly among aspects. To Hayek, law and legislation played the most proficient defenders of liberty in an indisputable role. To Mises, interventionist projects were addressed in several of his the 20th century, and perhaps across history. writings. The common denominator between Perhaps curiously, while they did have their the abuse of reason and the interventionist philosophical stances2, and their ethical agendas was that these policies would assessment of “why liberty” their most famous eventually be an attack on the liberal order. and enthusiastically-defended arguments for Controlling markets ultimately is controlling society as a whole, not only because markets 2 For philosophical matters, see Gordon (1994). are a part of daily human affairs but also

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because conducting economic intervention Mises, in his turn, had put that there are plans eventually requires interfering in other only two ways of conducting the production aspects of life. On epistemological issues, and distribution of goods and services. The Hayek and Mises agreed that socialism and first – and better – is through free markets; the other forms of the statist – collectivist thought second is through bureaucracy. This position were a direct attack to reason3. did not start with Mises, though. While Mises Consider his Road to Serfdom. Some and Hayek were fighting in the fronts of World War I as soldiers, the previous generation criticized Hayek on the grounds that the of Austrian economists was fighting at the vision of liberty that he defended was University of Vienna and inside the Austrian- insufficient4 – why having the freedom to leave Hungarian government. Many of Menger’s the country or to buy a house is important habilitiertes devoted several criticisms against if one does not have money to do so? Some the war cabinet and its attempts to conduct sort of “democratic planning” is important to the economy as an army. Both Menger and generate a new, “collective liberty”, that can Böhm-Bawerk warned (in vain) against the generate equal opportunities or even equal Kriegsleistungsgesetz (“war effort act”) of outcomes. In other words, the freedom to 1912 (SCHULAK; UNTERKÖFLER, 2011, p. pursuit a good life may not be sufficient for 100-101). When Mises was called to serve at one who does not have any means to do so. the war ministry’s economic department, Hayek contended that for providing such he instead chose to go back to the armed “good life”, governments would need to first front (HÜLSMANN, 2007, p. 278-279), for have a specific set of values determining what he understood that, in the long run, war a good life comprehend. Such ranking of and market economies could not coexist. values would generate disagreement among Capitalism is “essentially a scheme for peaceful voters and citizens5, and thus, these values nations” (MISES, 1998, p. 828). It was within would have to be imposed, and people would Mises’s scholarship, thus, that the criticisms have to be told what to do – e.g. one must hire that were hitherto directed to the war health insurance, and doctors must charge economy of the Austrian-Hungarian Empire such amounts for their services. Imposing a were systematized in a broader theoretical set of values, however, is pure arbitrary power analysis. Mises more deeply postulated that by the state. Writing in the best tradition of not only deliberately substituting markets English Law, Hayek correctly observed that for army-like arrangements could not work, such arbitrary power is a direct attack on the but additionally understood that introducing Rule of Law (1971) – part of the very definition barriers to market forces and the worldwide of Rule of Law, as A. V. Dicey primarily moving of goods was an invitation to written, is the opposition of arbitrary power conflictual relationships and eventually (HAYEK, 1971, p. 5-6). war. This subject was addressed by several of his writings, starting in Nation, State, & Economy, and revisited in Socialism, Human 3 See Hayek (1980 [1952]) and Mises (1998 [1949]), Action, Omnipotent Government, and his two specially Chapter III. books on interventionism6. 4 See, for instance, Becker (1941) and Mannheim (1940). 5 The argument is very similar to what later was mathematically formulated as Arrow’s impossibility 6 In order, Mises (1951 [1932]; 1998 [1949]; 2010 [1944]; theorem – see Arrow (1950). 2011 [1940]; 2011 [1929]).

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In his words “war is the alternative to Stigler referred to what was Frank Knight’s freedom of foreign investment as realized by view of economics, the exposed that: the international capital market” (MISES, 1998, p. 499). Put simply, when goods do not cross the primary role of economic theory is rather different: it is to contribute to the borders, armies do. For Mises, the reciprocal is understanding of how by consensus based also true as he wrote that “wars, foreign and upon rational discussion we can fashion [a] domestic (revolutions, civil wars), are more liberal society in which individual freedom likely to be avoided the closer the division is preserved and a satisfactory economic of labor binds men”. This proposition was performance achieved. (STIGLER, 1987, p. 58) also held by Mises philosophical influencer, Immanuel Kant (1795, p. 42)7, and later As the WWII ended, Hayek started his confirmed by several empirical studies8. organizational mission that could be perfectly While Mises was trying to analyze the defined as the same of Knight’s view just interconnection of interventionism on war, exposed. Hayek began to rejoin various Hayek, apart from his akin endeavor on The scholars and intellectuals within the liberal Road Serfdom, dedicated himself to a more tradition reconstruct the liberal project in broad and technical problem. As Boettke the aftermath of the WWII – that was the develops, Hayek’s abuse of reason project ideal of the Mont Pèlerin Society9. Over the was an intention to advance (while trying years, the MPS created a series of profound to convince his economist peers) his view conversations and debate on the paths that of what should be the scope of technical should help to a truly liberal society. economics (BOETTKE, 2018). Hayek’s project is non-trivial and it is in Hence, Hayek put his efforts in rebuilding deep coherence with Mises’s. The economic the aspects that were the hallmark of economic thought linked to the proposition of the war theory from Adam Smith to John Stuart Mill – economy departments during the First World two men that heavily influenced him. Namely, War defended that the fundamental laws of he directed economic theory in analyzing economics did not apply during wars. Mises not only economic problems per se, but also observed that “all economic thought was put emphasizing the institutions within which aside; ideas carried over from the ‘peacetime economic activity takes place. Law, property, economy’ were said not to hold for the ‘war contract, politics, and social and cultural economy,’ which obeyed other laws”. aspects should be part of economic sciences and social sciences in general. 2. Lessons from Mises and Hayek Perhaps, however, it is through two for Contemporary Problems different authors that this view of economic theory is better summarized. When George Modern-day problem resuscitates much of Mises-Hayek concerns. More recently, military 7 Kant (1795, p. 42) “It is the spirit of commerce that efforts has again become a matter of interest sooner or later takes hold of every nation, and is and relevant research by Austrian-influenced incompatible with war.” – the quote was retrieved as it appears in Coyne and Bradley (2019). 8 See, for instance, Polachek (1980), Oneal (2003) and 9 For a documental-based history of Hayek’s endeavor, Weede (2004). see Van Horn and Mirowski (2009).

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scholars10. And although the context of World were effusively defended as alternatives Wars is not the same as today’s, the same to populism and protectionism. Especially elements and doctrines prevail. This is to say regarding the former, Mises advanced an while present day problems may have been argument that is not usually considered when packed differently, their essential content is addressing the benefits of trade: peace. While the same. Protectionism is again finding echo the importance of free trade in alleviating within public debate and among politicians; poverty and producing economic growth the peaceful cooperation through the division is basically consensus among economists, of labor that has been growing since the the effects of international commerce in second half of the 20th century is finding establishing a strong incentive to peacefully obstacles in what Mises called “imperialistic” cooperate is strongly underappreciated. nationalism (MISES, 2006, p. 25). This kind Economic policies as weapons of economic of nationalism also gives sustenance to wars are still used by several countries militaristic agenda overseas, even if within (COYNE; BRADLEY, 2019). Tariffs are common the pretext of “exporting democracy”. sources of retaliations, ignoring the benefits In its turn, the same can be said regarding of adopting free trade, even if unilaterally. liberalism: “too much time and effort has Not only economic policies were adopted been put into repackaging and marketing a as weapons, but economic competition is fixed doctrine of eternal truths, rather than widely described with usage of military-like rethinking and evolving to meet the new terms, something that Mises strongly advised challenges”, as Boettke wrote. In other words, against. In Human Action he wrote that: liberal scholars and thinks tanks should not focus on creating new slogans to counter [it] is misleading to apply the terminology those of the enemies of liberty. If the same of mutual extermination to the problems of mutual cooperation as it works within doctrines persist, it is a signal that liberal a society. Military terms are inappropriate “does not face a marketing problem; it faces for the description of business operations. 11 a thinking problem”, Boettke adds . It is, e.g., a bad metaphor to speak of the Hence, this is where the importance of conquest of a market. There is no conquest Mises and Hayek lies. They did not counter the in the fact that one firm offers better or treads to liberty with a new communication cheaper products than its competitors. There is strategy in business only in a metaphorical strategy, but with a dedicated critique against sense. (MISES, 1998, p. 117) the core of anti-liberal ideas. Mises directed serious attention to protectionism, which Another lesson is regarding nationalism. he thought to be a philosophy of war (1998, In Mises’s thinking, nationalism is not a p. 687). Nevertheless, this is not to say that single, monolithic feeling, but it may be linked what was offered were a bunch critiques to two diverse ideas. The first one, what he but no alternatives. He also highlighted the called “liberal” or “pacifist” it is directly tied virtues (or superiority) of the liberal thought. to the principle of self-determination. This Tolerance and free trade, to cite examples, thought appeared first on hisNation, State, and Economy, (MISES, 2006, p. 25) and reappeared 10 See, for example, the work of Coyne (2007) and Coyne later in his The Ultimate Foundation. In the and Hall (2018). latter, he argued that pacifist nationalism, 11 Both quotes are from Boettke (2018, p. 258). and thus self-determination is an obstacle

Diagramação e XML SciELO Publishing Schema: www.editoraletra1.com.br | [email protected] MISES: Revista Interdisciplinar de Filosofia, Direito e Economia 307 João Pedro Bastos to war, since when “every territory can by nation after the II World War was a general majority vote determine whether it should belief that nation should be interdependent – form an independent state or a part of a larger various international organization had been state, there will no longer be wars to conquer founded with this very belief, intending to more provinces” (1962, p. 93). Thus, peaceful globally preserve peace. When juxtaposed, it cooperation, in the long run, depends also in becomes clear that the same did not happen the right to secession. in the interwar period, allowing a second To the contrary, “militaristic” or war to come. “imperialistic” nationalism embodies the Nevertheless, Mises would argue, it protectionism, interventionism. Where is not due to international organizations foreign economic production is not seen as by themselves that peaceful times were assets, but rather as a liability to domestic possible, to the contrary, Mises considered the interests. Mises advised that modern war Geneva experiment of the League of Nations unfortunately has a different aspect (MISES, a “lamentable failure”. More importantly than 2011, p. 104): the mere existence of such organizations, is the set of ideas that are at its core. Abandoning [it] is not a war of royal armies. It is a war statism and providing an unhampered of the peoples, a total war. It is a war of market are a “prerequisite for any amicable states, which do not leave to their subjects arrangement between nations”. For Mises any private sphere; they consider the whole (1998, p. 687): population a part of the armed forces. Whoever does not fight must work for the [W]hat is needed for a satisfactory solution support and equipment of the army. Army of the burning problem of international and people are one and the same. relations is neither a new office with more committees, secretaries, commissioners, Hence, economic actors abroad are not reports, and regulations, nor a new body viewed as mere enemies of the domestic of armed executioners, but the radical economy, but enemies of the people – overthrow of mentalities and domestic xenophobic agendas find echo within this policies which must result in conflict. view. Take Winston Churchill’s discourse for If the writings of Mises and Hayek could instance. When the II World War finished, be summarized in a key sentence, they would his speech to the House of Commons, on show that behind the demolition of the liberal May 8th, 1945, first and foremost thanked the order and peace, there are no tanks, assault British institutions – the Parliament especially. rifles or armies – these are mere consequences War efforts were conducted in domestic and of deeper phenomena. War is the result of a foreign lands, but power was always subdued set of ideas that enables power to rise through to the people’s representatives, and limited bullets. To use Mises words, “the wars of by the Constitution. The most memorable our age are not at variance with popular aspect was the commitment with democratic economic doctrines; they are, on the contrary, institutions even in war times. As he spoke: the inescapable result of consistent application “the strength of the Parliamentary institution of these doctrines” (MISES, 1998, p. 687). has been shown to enable it at the same If observed in the light of this context, moment to preserve all the title-deeds of what allowed peaceful cooperation among democracy while waging war in the most

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stern and protracted form” (CHURCHILL, collectivism, and, more generally, statism, 1945)12. which are not compatible with the liberal In Germany, in opposition, only a few peace. Mises summarized this view: “to years earlier, the Reichstag approved many defeat the aggressors is not enough to make of Nazi efforts (MISES, 2011). The judiciary peace durable. The main thing is to discard reassured the legitimacy of power through the ideology that generates war” (MISES, the principle “das gesunde Volksempfinden, 1998, p. 832). Hence, the “first condition for i.e., in accordance with the sound feelings the establishment of perpetual peace is, of of the people” – as Mises writes (1944, p. 42). course, the general adoption of the principles 13 Hence, again, the peace was not brought by of laissez-faire capitalism” (MISES, 1962) . the Parliament as an mere voting place (the “voting place” approved tyranny in Germany), Conclusion but by the ideas that directed Parliament’s acts. Mises observed the importance of Parliament We reviewed Mises’ and Hayek’s in securing peace (MISES, 1962, p. 93). writings on the relation between the market economy and the liberal peace. Whether in To avoid such violent disturbances of the the form of the Hayek-Friedman Hypothesis, peace and their pernicious consequences, i.e. that economic freedom is a precondition to safeguard the peaceful operation of the of political freedom, or the similar reciprocal, economic system, the liberals advocate that democracy is necessary for economic government by the representatives of the majority. This scheme makes peaceful freedom, we found that both Mises and change in the arrangement of public affairs Hayek devoted enormous attention to these possible. topics, and emphasized its various aspects. Although the free markets play an essential Consequently, we again turn to and indispensable role in maintaining the the reconstruction of the liberal way of liberal order, there are other institutions, thinking. It is not the “package” – whether virtues and arguments that should prevail the institutions, the historical context or the together in generating a stronger argument specific movements and their leaders – that in advocating for the liberal order. should be focus of one’s efforts for change. The first is that the war and other This is not to say that institutions do not attacks on the liberal order and peace are matter, because they certainly do. Rather, not primarily generated by guns and armies the argument is that for a persistente and – these are consequences of ideologies that sound system of “checks and balances” the embraces protectionism, interventionism and right ideas must be always vigilant, otherwise xenophobia, what Mises named, together, the balances are often abolished at a glance.. as imperialistic nationalism. The second is Defeating warlike spirit requires defeating that international trade promotes not only a not only the aggressors, but also the ideas role in diminishing poverty and economic of protectionism, military nationalism, development, but also plays a tremendously positive role in generating peace among

12 By referring to the discourse, we wish to evaluate it by itself, and not necessarily agree with other actions 13 The quote appears as note 9 on page 93. Its content, conducted during war time. however, is located on page 137.

Diagramação e XML SciELO Publishing Schema: www.editoraletra1.com.br | [email protected] MISES: Revista Interdisciplinar de Filosofia, Direito e Economia 309 João Pedro Bastos nations. The third is that economics problems CHURCHILL, Winston. End of the War in Europe. should not be addressed in an institutional Broadcast, London, and House of Commons, London, May 8th, 1945. Available at: https://winstonchurchill. vacuum. Economic theory should account org/resources/speeches/1941-1945-war-leader/end-of- economic activity itself and the institutional the-war-in-europe/. Acessed on: April 10 2019. arrangements within which economic COYNE, Christopher J. After War: The Political activity takes place; understanding the Economy of Exporting Democracy. Stanford: Stanford role of institutions like property, contract, University Press, 2007. constitutional democracy and the rule of COYNE, Christopher J.; BRADLEY, Anne R. Ludwig law not only contributes to a theory that von Mises on war and the economy, Review of better explains the world with all its human Austrian Economics, 2019. complexities, but also allows one to grasp COYNE, Christopher J.; HALL, Abigail R. Tyranny the importance of them in the maintenance Comes Home: The Domestic Fate of U.S. Militarism. of peaceful cooperation through the division Stanford University Press, 2018. of labor and knowledge. It shows that other DICEY, Albert V. Introduction to the Study of the Law citizens of the world, domestic and abroad, of the Constitution. Indianapolis: Liberty Fund, 1982. are partners to cooperate with. FENG, Yi. Democracy, Political Stability and Economic The key lesson, however, precedes the Growth. British Journal of Political Science, v. 27, ones just listed. These are, in fact, consequences n. 3, 1997. of applying it to society’s problems with GORDON, David. The Philosophical Origins of commitment. Namely, the lesson is that the Austrian Economics. Auburn: Ludwig von Mises problems and frictions that we face today are Institute, 1994. new packages for the same ideas that have HAYEK, Friedrich A. The Use of Knowledge in Society. abridged us in the past, and to counter them, American Economic Review, v. 35, n. 4, 1945. liberalism does not need a new “package” as well, but rather needs thinking, careful HAYEK, Friedrich A. The Road to Serfdom. London: Routledge, 1971 [1944]. research and arguments for facing the ideas behind social ills. To use Boettke’s words, true HAYEK, Friedrich A. The Counter-Revolution of liberalism is a “subtle and nuanced expert Science. Indianapolis: Liberty Fund, 1980 [1952]. critique of rule by experts” (BOETTKE, 2018, HÜLSMANN, Jorg G. The Last Knight of Liberalism: p. 261), not a marketing campaign to say that An Intellectual Biography of Ludwig von Mises. liberal experts may rule better. Auburn: Ludwig von Mises Institute, 2007. KANT, Immanuel. Project for a Perpetual Peace: A References Philosophical Essay. London: Vernor and Hood, 1795. KAPÁS, Judit; CZEGLÉDI, Pal. Social orders, and ARROW, Kenneth J., A Difficulty in the Concept of a weak form of the Hayek–Friedman Hypothesis. Social Welfare. Journal of Political Economy, v. 58, International Review of Economics, v. 65, n. 3, 2018. n. 4, 1950. LAWSON, Robert A.; CLARK, J. R. Examining the BECKER, Carl. New Liberties for Old. New Haven: Hayek-Friedman Hypothesis on Economic and Yale University Press, 1941. Political Freedom. Journal of Economic Behavior and Organization v. 74, n. 3, 2010. BOETTKE, Peter J. F. A. Hayek: Economics, Political Economy and Social Philosophy. London: Palgrave MANNHEIM, Karl. Man and Society in an Age of Macmillan, 2018. Reconstruction. London: Routledge, 1940.

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