Karlheinz Muhr Library

The Complete “Austrian School of Economics” Collection


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The archive.

2,793 works, 150 years of economic thought. Each one summarized and searchable, with cited passages inside.

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97–108 of 164 matches · 2,793 works totalPage 9 of 14; every summary opens into its work.
  1. 1962
    Rules, Perception and Intelligibility

    Rules, Perception and Intelligibility

    Friedrich August von Hayek · 7 sections

    A child masters the grammar of its language long before it could state a single rule of syntax — a fact Hayek takes as the key to human conduct at large. This British Academy lecture argues that we are governed everywhere by rules we can follow but cannot articulate: in craftsmanship and athletics, in the sense of justice, and above all in perception, where we read gestures, moods, and purposes without knowing the cues that guide us. Drawing the theory of classification from his Sensory Order into linguistics, ethology, and social-science method, he distinguishes patterns we can specify from those we intuitively recognize but never fully state, defending the latter as indispensable data for understanding action. The argument closes on a Gödelian limit: no mind can wholly specify the rules on which its own workings depend.

    What we recognize as purposive conduct is conduct following a rule with which we are acquainted but which we need not explicitly know.

  2. 1962
    The Moral Element in Free Enterprise

    The Moral Element in Free Enterprise

    Friedrich August von Hayek · 6 sections

    Why should a free society tie a person's material reward to the value of the services he renders others rather than to his moral worth? Hayek's answer, delivered as a 1961 address to the National Association of Manufacturers, rests on ignorance: no authority can know a person's information, effort, risks, or luck, so income must follow results and voluntary payment even when reward and merit visibly diverge. That divergence, he insists, should be acknowledged rather than hidden, for it is what keeps material life from being ruled by public approval. Economic freedom is no mere efficiency device, because we are free in choosing means we are free in choosing ends, and it demands particular moral beliefs in return: above all individual responsibility, which he defends against fashionable determinism, citing Szasz on the myth of mental illness.

    It is only because we are free in the choice of our means that we are also free in the choice of our ends.

  3. 1962
    The Uses of 'Gresham's Law' as an Illustration of 'Historical Theory'

    The Uses of 'Gresham's Law' as an Illustration of 'Historical Theory'

    Friedrich August von Hayek · 1 sections

    'Bad money drives out good' is an ancient saying only accidentally tied to Gresham's name, and as a bare maxim, Hayek insists, practically worthless. His concern is methodological: to show that historical explanation cannot proceed on such slogans without theory to specify the conditions under which they hold. Properly stated, the law requires two monies equivalent in value for some purposes—settling domestic debts—yet unequal for others, such as foreign payment or industrial use of the metal; only then does individual choice compose into a collective shift in circulation. Good coin need not vanish at once, and its eventual flight signals no fresh public discovery but a change in monetary balance. From the Kipper und Wipper crisis to the English recoinage of 1696, even elementary theory guards the historian against false causal tales.

    What theory will tell him is that he must look for some cause which led to a fall of the internal value of both good and bad coins relative to their value in foreign commerce and in industrial uses.

  4. 1963
    Alte Wahrheiten und neue Irrtümer

    Alte Wahrheiten und neue Irrtümer

    Friedrich August von Hayek · 5 sections

    Addressing an international savings-bank congress in 1963, Hayek defends thrift as economic fact, moral habit, and political condition at once. Against the intuition that spending helps others while saving is sterile — an intuition he traces from Franklin and mercantilist praise of luxury through Keynesian underconsumption theory — he restates the old truth that real capital forms only when a society produces more than it consumes. Yet volume is not the point: what a nation spends on capital formation matters far less than what comes of it, and only decentralized owners testing dispersed knowledge can find its best uses. He warns that inflation, forced 'frugality' through taxation, state growth planning, and expansive social security all corrode the widely shared habit of reckoning in capital rather than income on which a free economy rests.

    Ein Volk wird nur dann eine erfolgreiche Unternehmerschicht hervorbringen, wenn eine vielfach größere Zahl von Menschen Gelegenheit hat, sich in der nutzbringenden Anwendung von Kapital zu versuchen.

    English translation: “A people will bring forth a successful class of entrepreneurs only if a many times greater number of people have the opportunity to try their hand at the profitable use of capital.”

  5. 1963
    Arten der Ordnung

    Arten der Ordnung

    Friedrich August von Hayek · 1 sections

    Two kinds of order must be kept apart, this essay argues: the organization that someone deliberately makes, and the spontaneous, polycentric order that no one designs. From that distinction Hayek builds an account of how the coordinated action of millions can arise without a coordinator, further separating concrete arrangements that can be perceived or commanded from abstract orders that encompass many manifestations at once. Language, law, morality, money, crystal formation, and the market's division of labor all display complex order emerging without central design, sustained by general rules of conduct that let individuals use dispersed local knowledge. A free society, he concludes, must rely on such abstract general rules rather than concrete command — a thesis set pointedly against Carl Schmitt's concrete-order jurisprudence.

    Die Hauptschwierigkeit ist, daß die Ordnung sozialer Geschehnisse nicht mit den Sinnen wahrgenommen, sondern nur vom Verstand nachgebildet werden kann.

    English translation: “The main difficulty is that the order of social events cannot be perceived by the senses, but can only be reconstructed by the intellect.”

  6. 1963
    Die Rechts- und Staatsphilosophie David Humes

    Die Rechts- und Staatsphilosophie David Humes

    Friedrich August von Hayek · 4 sections

    Long read as the skeptic who woke Kant from dogmatic slumber, David Hume reappears here as something else entirely: the most coherent theorist of liberty under law. Hayek strips away the myth of a single Enlightenment, setting French constructivist rationalism against a British-Scottish line running through Mandeville, Smith, Ferguson, and Burke, in which durable institutions grow rather than get invented. Justice, property, and promise-keeping, on Hume's account, precede government and arise from convention among partial, ignorant, and scarcity-pressed beings; law must therefore be general and inflexible, never a case-by-case reckoning of merit or utility. The closing pages set Hume against Rousseau, whose democratic enthusiasm displaced this sober Whig liberalism and fed later doctrines of popular sovereignty.

    Er wußte, daß die größten politischen Werte, Frieden, Freiheit und Gerechtigkeit, ihrem Wesen nach negativ sind, eher ein Schutz gegen Unrecht als positive Gegebenheiten.

    English translation: “He knew that the greatest political values—peace, liberty, and justice—are by their very nature negative, rather a protection against injustice than positive givens.”

  7. 1963
    Recht, Gesetz und Wirtschaftsfreiheit

    Recht, Gesetz und Wirtschaftsfreiheit

    Friedrich August von Hayek · 6 sections

    At the centenary of the Dortmund Chamber of Industry and Commerce, Hayek turns economic freedom into a constitutional question. His diagnosis is terse: the modern Rechtsstaat has decayed into a mere Gesetzesstaat, no longer able to tell Recht, binding rules of just conduct, from Gesetz, whatever a competent legislature happens to enact. General, abstract, prospective rules that bind rulers and ruled alike can accommodate factory and health regulation; what destroys liberty is discretionary intervention, price fixing, licensing, quotas, that lets officials treat like persons unlike. Reading Article 19 of the Bonn Basic Law rigorously, he argues that such controls should be unconstitutional, and proposes a bicameral remedy separating the making of rules from the direction of government, echoing Oakeshott's contrast between nomocratic and telocratic order.

    In Form solcher Gesetze läßt sich jeder Befehl kleiden.

    English translation: “In the form of such statutes any command can be clothed.”

  8. 1963
    The Legal and Political Philosophy of David Hume

    The Legal and Political Philosophy of David Hume

    Friedrich August von Hayek · 1 sections

    There was never a single 'Enlightenment,' Hayek insists, and the label obscures the very division that matters: French constructivist rationalism on one side, the Scottish and English concern with evolved institutions on the other. Reclaiming David Hume from the epistemologists, this 1963 lecture presents him as the chief theorist of Whig liberalism, liberty under general and inflexible laws rather than democratic omnipotence. Hume's account of justice, property, transfer by consent, and promise-keeping treats them as artifacts of cultural evolution, arising from scarcity, limited generosity, and convention rather than from innate reason or legislative design; government therefore presupposes the rules of justice and cannot be their source. Hayek links this rule-of-law liberalism forward to Kant and the Rechtsstaat, and closes by contrasting Hume's limited government with the democratic rationalism of Rousseau, whose legacy would eventually eclipse it.

    He knew that the greatest political goods, peace, liberty, and justice, were in their essence negative, a protection against injury rather than positive gifts.

  9. 1963
    Wirtschaft, Wissenschaft und Politik

    Wirtschaft, Wissenschaft und Politik

    Friedrich August von Hayek · 10 sections

    Returning to a European lectern between his Vienna youth and his years in London and Chicago, Hayek uses his Freiburg inaugural to ask how scientific integrity survives contact with policy. Following Max Weber, he insists that causal analysis be kept distinct from valuation, yet demands that economists name the ideals guiding their questions rather than feign neutrality. The lecture's sharpest section dismantles social justice: commutative justice rewards the value one's services hold for others, while distributive justice would require a coercive authority imposing a single hierarchy of ends. Because market prices carry more dispersed knowledge than any planner can gather, policy's proper task is to build a framework that is systemgerecht, not to steer particular outcomes. Honoring Walter Eucken, Hayek binds Weberian rigor to Ordnungspolitik.

    Distributive Gerechtigkeit verlangt so nicht nur persönliche Unfreiheit, sondern auch die allgemeine Durchsetzung einer unbestrittenen Hierarchie der Werte, das heißt, ein im strengsten Sinne des Wortes totalitäres Regime.

    English translation: “Distributive justice thus requires not only personal unfreedom but also the general enforcement of an uncontested hierarchy of values—that is, a totalitarian regime in the strictest sense of the word.”

  10. 1964
    Die Theorie komplexer Phänomene

    Die Theorie komplexer Phänomene

    Friedrich August von Hayek · 7 sections

    Rather than beginning in practical need, science begins in wonder and in the recognition of patterns, and some patterns, Hayek argues, can be explained but never precisely predicted. He defines complexity by the minimum number of variables required to instantiate a pattern, and places biological, mental, and social phenomena firmly on the far side of that threshold. A simple theory of an inherently complex order is likely false unless padded with a ceteris paribus clause that destroys its simplicity; statistics, treating elements as unconnected, cannot rescue it. Darwinian natural selection becomes his model of legitimate pattern prediction, falsifiable because it excludes certain sequences, yet unable to forecast actual forms. Economics and linguistics, built on systems of equations that yield no numerical prices, share the same standing and the same humility.

    Staunen und unbefriedigte Wünsche haben den Menschen zu wissenschaftlicher Forschung angetrieben.

    English translation: “Wonder and unsatisfied desires have driven man to scientific inquiry.”

  11. 1964
    The Theory of Complex Phenomena

    The Theory of Complex Phenomena

    Friedrich August von Hayek · 10 sections

    No inquiry begins from bare fact: without a prior sense of what to look for, even patient observation of raw data yields nothing intelligible. From this premise Hayek builds a defence of pattern prediction. He separates simple phenomena, where a few variables permit exact forecasts, from complex phenomena—life, mind, society—where the relevant elements multiply beyond any hope of ascertaining them, so that theory can predict only classes of patterns rather than particular events. Darwinian natural selection becomes his model case: rigorous and falsifiable, yet unable to specify which species will arise. Statistics cannot rescue us, he warns, since it suppresses the very structural relations that make complex wholes what they are. Scientific maturity lies in recognising the boundaries of prediction rather than imitating the methods of simpler domains.

    But there seems to exist a fairly easy and adequate way to measure the degree of complexity of different kinds of abstract patterns.

  12. 1965
    Die Anschauungen der Mehrheit und die zeitgenössische Demokratie

    Die Anschauungen der Mehrheit und die zeitgenössische Demokratie

    Friedrich August von Hayek · 6 sections

    No identifiable majority, Hayek contends, ever wanted many of the results modern democratic politics produces, which is precisely why blaming the majority misses the disease. The trouble is that representative assemblies now perform two incompatible tasks at once: laying down general rules of justice and directing the concrete business of government. Once every parliamentary resolution counts as law merely because a legislature passed it, the older ideal of law as an impartial, universal norm dissolves, and party coalitions trade privileges among organized interests. Popular sovereignty he calls a rationalist superstition, the assumption that some unlimited power must exist somewhere. His remedy is a bicameral order with one chamber elected on long, staggered, nonrenewable terms and confined solely to general rules, insulated from the bargaining that governs administration.

    Sie ist die Grundlage, die ein friedliches Zusammenleben der Menschen in der Gesellschaft und einen friedlichen Wechsel der Personen, die organisierte Gewalt ausüben, möglich macht.

    English translation: “It is the foundation that makes possible a peaceful coexistence of people in society and a peaceful change of the persons who exercise organized force.”

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