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University M'icrcxilnris International 300 N INFORMATION TO USERS This reproduction was made from a copy of a document sent to us for microfilming. While the most advanced technology has been used to photograph and reproduce this document, the quality of the reproduction is heavily dependent upon the quality o f the material submitted. The following explanation of techniques is provided to help clarify markings or notations which may appear on this reproduction. 1.The sign or “target” for pages apparently lacking from the document photographed is "Missing Pagets)” . If it was possible to obtain the missing page(s) or section, they are spliced into the film along with adjacent pages. This may have necessitated cutting through an image and duplicating adjacent pages to assure complete continuity. 2. When an image on the film is obliterated with a round black mark, it is an indication of either blurred copy because o f movement during exposure, duplicate copy, or copyrighted materials that should not have been filmed. For blurred pages, a good image of the page can be found in the adjacent frame. If copyrighted materials were deleted, a target note will appear listing the pages in the adjacent frame. 3. When a map, drawing or chart, etc., is part of the material being photographed, a definite method o f "sectioning” the material has been followed. It is customary to begin filming at the upper left hand corner of a large sheet and to continue from left to right in equal sections with small overlaps. If necessary, sectioning is continued again beginning below the first row and continuing on until complete. 4. For illustrations that cannot be satisfactorily reproduced by xerographic means, photographic prints can be purchased at additional cost and inserted into your xerographic copy. These prints are available upon request from the Dissertations Customer Services Department. 5. Some pages in any document may have indistinct print. In all cases the best available copy has been filmed. University M'icrcxilnris International 300 N. Zeeb Road Ann Arbor, Ml 48106 8510559 Conrtin, Lawrence Jay METHODOLOGICAL LIBERALISM: THE THOUGHT OF F. A. HAYEK The Ohio State University Ph.D. 1985 University Microfilms International300 N. Zeeb Road, Ann Arbor, Ml 48106 METHODOLOGICAL LIBERALISM: THE THOUGHT OF F. A. HAYEK DISSERTATION Presented in Partial Fulfillment of the Requirement for the Degree doctor of Philosophy in the Graduate School of The Ohio State University By Lawrence.Jay Connin, B.E., M.A. ***** The Ohio State University 1985 Reading Committee Approved By John R. Champlin James Farr Adviser John Dryzek Science ACKNOWLEDGEMENTS I would like to thank Professors Champlin, Farr, and Dryzek for their help and encouragement with this project. In addition, I wish to acknowledge the help and the encouragement of the following friends and associates: Frank and Virginia Lenz, Dave Sadowski, Dr. Steve Wise, Dr. Patrick Shields, Dr. Craig Rimmer- man, Marye Shin, Dave and Norma White, Linda Nanez and especially Mary Jo Borden and Elsie Connin. VITA December 18 , 1952 ............... Born - Toledo, Ohio 1974 ............................... B.E., University of Toledo, Toledo, Ohio 1977.................................. M.A., University of Toledo, Toledo, Ohio 1977-1982 .......................... Teaching Associate, Department of Political Science, The Ohio State University, Columbus, Ohio 1982 ............................... Adjunct Instructor in Political Science, College of Wooster, Wooster, Ohio PUBLICATIONS "On D. Quattro: "Rawls and Left Criticism"'. Political Theory (February, 1985). FIELDS OF STUDY Major Field: Political Science Major: Political Theory Minor: Comparative Politics TABLE OF CONTENTS Page ACKNOWLEDGEMENT ........................................... ii VITA ........................................................ iii ABBREVIATIONS .............................................. vi INTRODUCTION .............................................. 1 Hayek's Message ............................... 3 The Philosophical T a s k ....................... 5 The Plan of the Present W o r k ............... 10 CHAPTER I. THE EPISTEMOLOGICAL DIMENSION .................. 16 II. THE METHODOLOGICAL DIMENSION .................. 28 The Austrian Connection ....................... 29 Hayek's Views on Science and Method .... 34 Popper and H a y e k ............................... 48 III. THE ECONOMIC D I M E N S I O N .......................... 64 The Marginalist Revolution .................. 65 The Keynesian Episode ......................... 74 The Socialist Calculation Debate .......... 87 IV. THE CRITIQUE OF SOCIALISM....................... 107 Kinds of R a t i o n a l i s m .......................... 109 Intellectuals and Socialism .................. 114 The Development of Hayek's Radical Anti-Socialism ............................... 118 The Post-War Warning ......................... 121 The Mixed Economy and the Welfare State . 132 i v V. THE LIBERAL ORDER 141 Justifying Individual Freedom ............... 14 3 The Two Liberal T r a d i t i o n s .................. 147 Law, Legislation and L i b e r t y ............... 153 Rules vs. O r d e r s ............................... 163 A Model Constitution .......................... 173 The Legitimate Tasks of a Liberal G o v e r n m e n t .................................... 179 VI. THE MIRAGE OF SOCIAL J U S T I C E .................. 187 The Mirage of Social J u s t i c e ............... 139 Commutative Justice ............................ 193 The Meaning of Social Justice ............... 201 Liberal Egalitarianism .... ............... 206 VII. CONCLUSIONS......................................... 219 Hayek's Consistency ............................ 221 Hayek as an Ideologue.......................... 224 Hayek's Methodological Liberalism .......... 234 Final R e m a r k s .................................... 245 BIBLIOGRAPHY ................................... 249 v ABBREVIATIONS The following list of abbreviations refer to books or collections of essays written by F. A. Hayek. When referring to a particular book or article by Hayek the source will be identified first followed by the revelant page or pages. References made to all other books or articles will be indi­ cated by a number which corresponds to the numbered biblio­ graphy appearing at the end of the text. CEP Collectivist Economic Planning (editor) 1935 SA The Spirit of the Age (editor) 1942 RS The Road to Serfdom 1944 IEO Individualism and Economic Order 1948 SO The Sensory Order 1952 CRS The Counter-Revolution of Science 1952 CH Capitalism and the Historians (editor) 1954 CL The Constitution of Liberty 1960 SPPE Studies in Philosophy, Politics and Economics 1967 NS New Studies 1978 LLL1 Law, Legislation and LibertyrRules and Order (1973) LLL2 Law, Legislation and Liberty;The Mirage of Social Justice (1976) LLL3 Law, Legislation and Liberty:The Political Order of a Free People (1979) Cl "Coping With Ignorance" in Champions of Freedom Vol. 5 (1979) For a comprehensive bibliography of Hayek's publications consult Essays on Hayek pages 51-59 edited by Fritz Machlup. INTRODUCTION Friedrich A. Hayek was born in Vienna in 1899.^ Intel­ lectuals and scientists line his family tree, including his father who was a doctor of medicine and later a professor of botany at the University of Vienna. Both of his brothers were university professors, one in anatomy and the other in chemistry. Hayek received two doctorates from the Univer­ sity of Vienna, one in Law in 1921 and a second in Political Science in 1923, breaking with the family's predilection for the natural sciences. Upon graduation he was hired by Ludwig von Mises, the leading economist of the Austrian School, to work as his assistant in a government office. This was an auspicious event in his life, as von Mises was to become his most important intellectual mentor. In 1927 they founded the Austrian Institute for Economic Research, to study business cycles and economic policy. At the same time Hayek lectured in economics at the University of Vienna. In 1931 he travelled to England to give a lecture series at the London School of Economics at the request of Lionel Robbins. Soon thereafter he was appointed Professor of Economic Science and Statistics at the University of London, and held that position until 1950. While in England 1 2 he met John Maynard Keynes, with whom he would be both a friend and an intellectual adversary. In 1938 he became a naturalized citizen of the United Kingdom. Prior to the Second World War, Hayek's publications were on purely economic issues or on issues dealing with the methodological problems of economics. However, in 1944 he published the short political polemic, The Road to Serfdom, for which lie became widely known. The book created a stir by condemning social planning and economic management by government. His thesis was that while planning seems to be rational and humane, in fact, it creates the preconditions for a totalitarian political order. The book received an unusual amount of attention in the U.S. and in 1950 Hayek accepted an offer from the University of Chicago to become a Professor of Social and Moral Science and a member of the school's Committee on Social Thought. During his twelve years at Chicago he turned his attention exclusively to social and political theory. The end product of his stay in the U.S. was the publication of his magnum opus, The Consti­ tution of Liberty, the most extensive statement of his political beliefs. In 1952 he returned to Germany as Professor of Economic Policy at
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