F. A. Hayek wrote that Hobhouse's book would have been more accurately titled Socialism, and Hobhouse himself called his beliefs " liberal socialism ".

Friedrich Hayek, a well-known classical liberal, criticized this as a misconception of freedom:

The economist Walter Block observed critically that while The Road to Serfdom is " a war cry against central planning ," it does show some reservations with a free market system and laissez-faire capitalism, with Hayek even going so far as to say that " probably nothing has done so much harm to the liberal cause as the wooden insistence of some liberals on certain rules of thumb, above all the principle of laissez-faire.

Asked about the liberal, non-democratic rule by a Chilean interviewer, Hayek is translated from German to Spanish to English as having said, " As long term institutions, I am totally against dictatorships.

Hayek, of course, had lived his early life under the mostly liberal, but mostly non-democratic, rule of the Austro-Hungarian Emperor, and Hayek had seen democracy descend into illiberal tyranny in a host of Central and Eastern European countries.

Hayek identified himself as a classical liberal but noted that in the United States it had become almost impossible to use " liberal " in its original definition, and the term " libertarian " has been used instead.

Friedrich Hayek argues for the classical liberal view that market economies allow spontaneous order ; that is, " a more efficient allocation of societal resources than any design could achieve.

He derived the phrase spontaneous order from Gestalt psychology, and it was adopted by the classical liberal economist Frederick Hayek, although the concept can be traced back to at least Adam Smith.

Thatcher herself claimed philosophical inspiration from the works of Burke and Friedrich Hayek for her defence of liberal economics.

Writing in 1944, the liberal Austrian economist Friedrich Hayek said of the change in political attitudes that had occurred since the Great War: " Perhaps nothing shows this change more clearly than that, while there is no lack of sympathetic treatment of Bismarck in contemporary English literature, the name of Gladstone is rarely mentioned by the younger generation without a sneer over his Victorian morality and naive utopianism ".

Hayek did not believe that a complete lack of coercion was possible, or even desirable, for a liberal society, and he argued that a set of traditions was absolutely necessary which allowed individuals to judge whether they would or would not be coerced.

In designing a liberal system of law, Hayek believed that two things were vitally important: the protection and delineation of the personal sphere and the prevention of fraud and deception, which could be maintained only by threat of coercion from the state.

Control of information also, as Hayek notes, allows control of the actions of an individual, rendering any liberal system illiberal.

" While criticizing Hayek, Tullock still praises the classical liberal notion of economic freedom, saying, " Arguments for political freedom are strong, as are the arguments for economic freedom.

In the 1950s, Eastman joined the classical liberal Mont Pelerin Society founded by Hayek and Mises, and was a participating member of the American Committee for Cultural Freedom at the invitation of Sidney Hook.

The Road to Serfdom was to be the popular edition of the second volume of Hayek ’ s treatise entitled “ The Abuse and Decline of Reason ,” and the title was inspired by the writings of the 19th century French classical liberal thinker Alexis de Tocqueville on the “ road to servitude .” The book was first published in Britain by Routledge in March 1944, during World War II, and was quite popular, leading Hayek to call it “ that unobtainable book ,” also due in part to wartime paper rationing.

He arranged for translation and publication into a variety of central and eastern European languages of textbooks in economics and law, as well as seminal works by Ludwig von Mises, F. A. Hayek, Milton Friedman, and other thinkers in the libertarian and liberal traditions.

For example, an important classical economic liberal, Friedrich Hayek, acknowledged an intellectual debt to Burke.

It was the classical liberal F. A. Hayek in “ Freedom, Reason and Tradition ” who most systematically and relentlessly pursued the nature of a libertarian / traditionalist synthesis but was loath to give it a label.

Economic liberalism, insofar as it is ideological, owes its creation to the " classical liberal " tradition, in the vein of Adam Smith, Friedrich A. Hayek, Milton Friedman, and Ludwig von Mises.

While the Institute does not provide instruction in philosophical conservatism, it does encourage its graduates to read classic conservative authors like Edmund Burke and " classical liberal " authors like Frederic Bastiat, as well as more modern conservative thinkers including William F. Buckley Jr., Russell Kirk, Barry Goldwater, and libertarian thinkers such as Milton Friedman and F. A. Hayek.

This difficulty was notably written about by economists Ludwig von Mises and Friedrich Hayek, both of whom called it the " economic calculation problem ".

Paul Cockshott and Allin Cottrell in Towards a New Socialism, Information and Economics: A Critique of Hayek, and Against Mises have argued that the use of computational technology now simplifies economic calculation and allows central planning to be implemented and sustained.

In 1974, Hayek shared the Nobel Memorial Prize in Economic Sciences ( with Gunnar Myrdal ) for his " pioneering work in the theory of money and economic fluctuations and ... penetrating analysis of the interdependence of economic, social and institutional phenomena.

Upon the completion of his examinations, Hayek was hired by Ludwig von Mises on the recommendation of Wieser as a specialist for the Austrian government working on the legal and economic details of the Treaty of Saint Germain.

Upon his arrival in London, Hayek was quickly recognized as one of the leading economic theorists in the world, and his development of the economics of processes in time and the coordination function of prices inspired the ground-breaking work of John Hicks, Abba Lerner, and many others in the development of modern microeconomics.

In 1932, Hayek suggested that private investment in the public markets was a better road to wealth and economic coordination in Britain than government spending programs, as argued in a letter he co-signed with Lionel Robbins and others in an exchange of letters with John Maynard Keynes in The Times.

< p > The most interesting among the courageous dissenters of the 1980s were the classical liberals, disciples of F. A. Hayek, from whom they had learned about the crucial importance of economic freedom and about the often-ignored conceptual difference between liberalism and democracy .</ p >

I read the Western economic textbooks and also the more general work of people like Hayek.

Eager to promote alternatives to what he regarded as the narrow approach of the school of economic thought that then dominated the English-speaking academic world ( centered at the University of Cambridge and deriving largely from the work of Alfred Marshall ), Robbins invited Hayek to join the faculty at LSE, which he did in 1931.

In his popular book, The Road to Serfdom ( 1944 ) and in subsequent academic works, Hayek argued that socialism required central economic planning and that such planning in turn leads towards totalitarianism.

" As referenced above in the section on " The economic calculation problem ", Hayek wrote that " there is no reason why ... the state should not help to organize a comprehensive system of social insurance ...." Summarizing on this topic, Wapshott writes " advocated mandatory universal health care and unemployment insurance, enforced, if not directly provided, by the state.

Hayek continued his research on monetary and capital theory, revising his theories of the relations between credit cycles and capital structure in Profits, Interest and Investment ( 1939 ) and The Pure Theory of Capital ( 1941 ), but his reputation as an economic theorist had by then fallen so much that those works were largely ignored, except for scathing critiques by Nicholas Kaldor.

Despite this comment, Samuelson spent the last 50 years of his life obsessed with the problems of capital theory identified by Hayek and Böhm-Bawerk, and Samuelson flatly judged Hayek to have been right and his own teacher, Joseph Schumpeter, to have been wrong on the central economic question of the 20th century, the feasibility of socialist economic planning in a production goods dominated economy.

Max Weber's article has been cited as a definitive refutation of the dependence of the economic theory of value on the laws of psychophysics by Lionel Robbins, George Stigler, and Friedrich Hayek, though the broader issue of the relation between economics and psychology has come back into the academic debate with the development of " behavioral economics.

Friedrich Hayek in particular elaborated the arguments of Weber and Mises about economic calculation into a central part of free market economics's intellectual assault on socialism, as well as into a model for the spontaneous coordination of " dispersed knowledge " in markets.

Hayek further argued that central economic planning-a mainstay of socialism-would lead to a " total " state with dangerous power.

Hayek argued that increased economic freedom had put pressure on the dictatorship over time and increased political freedom.

Due to the ignorance of the individual, Hayek argued that an individual could not understand which of the various political, economic and social rules they had followed had made them successful.

Hayek believed that certain elements that now make up modern economic neoliberal thought are too rationalist, relying on preconceived notions of human behaviour, such as the idea of homo economicus.

Austrian School economists Ludwig Von Mises and Friedrich August Hayek argued that private property rights are a requisite for rational economic calculation and that the prices of goods and services cannot be determined accurately enough to make efficient economic calculation without clearly defined private-property rights.