Friedrich von Hayek responded that the system of equations required too much information that would not be easily available and the ensuing calculations would be too difficult.

Actress Salma Hayek responded angrily, penning a furious letter in which she denounced Dame Edna.

" The Labour leader Clement Attlee responded in his election broadcast by claiming that what Churchill had said was the " second-hand version of the academic views of an Austrian professor, Friedrich August von Hayek.

* Individualism and Economic Order by Friedrich Hayek

There was a revival of interest in classical liberalism in the 20th century led by Friedrich Hayek and Milton Friedman.

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

It was first proposed by Ludwig von Mises in 1920 and later expounded by Friedrich Hayek.

The price conveys embedded information about the abundance of resources as well as their desirability which in turn allows, on the basis of individual consensual decisions, corrections that prevent shortages and surpluses ; Mises and Hayek argued that this is the only possible solution, and without the information provided by market prices socialism lacks a method to rationally allocate resources.

The problem of planning production is the knowledge problem explained by Hayek ( 1937, 1945 ) The planning could either be done in a decentralised fashion, requiring some mechanism to make the individual plans coherent, or centrally, requiring a lot of information.

Part of the reason that Hayek stressed the knowledge problem was also because he was mainly concerned with debating the proposal for Market Socialism and the Lange Model by Oskar R. Lange ( 1938 ) and Hayek's student Abba Lerner ( 1934, 1937, 1938 ), which was developed in response to the calculation argument.

* The Use of Knowledge in Society by Friedrich Hayek

* Information and Economics: A Critique of Hayek by Allin F. Cottrell and W. Paul Cockshott

Friedrich Hayek in his The Use of Knowledge in Society argued that " knowledge of the particular circumstances of time and place " is not easily aggregated and is often ignored by professional economists.

However, after 1919 titles of nobility were banned by law in Austria, and the " von Hayek " family became simply the Hayek family.

In school Hayek was much taken by one instructor's lectures on Aristotle's ethics.

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.

It was first published in Britain by Routledge in March 1944 and was quite popular, leading Hayek to call it " that unobtainable book ," also due in part to wartime paper rationing.

Hayek was concerned " with that condition of men in which coercion of some by others is reduced as much as is possible in society ".

Following his retirement, Hayek spent a year as a visiting professor of philosophy at the University of California, Los Angeles, where he continued work on Law, Legislation and Liberty, teaching a graduate seminar by the same name and another on the philosophy of social science.

Primary drafts of the book were completed by 1970, but Hayek chose to rework his drafts and finally brought the book to publication in three volumes in 1973, 1976 and 1979.

Although he spoke with apprehension at his award speech about the danger which the authority of the prize would lend to an economist, the prize brought much greater public awareness of Hayek and has been described by his biographer as " the great rejuvenating event in his life ".

Hayek was criticised by Liberal politicians Gladwyn Jebb and Andrew Phillips, who both claimed that the purpose of the pact was to discourage socialist legislation.

Hayek was defended by Professor Antony Flew who stated that the German Social Democrats, unlike the British Labour Party, had, since the late 1950s, abandoned public ownership of the means of production, distribution and exchange and had instead embraced the social market economy.

Hayek said a year later that he was " amazed by her.

In his Prices and Production ( 1931 ), Hayek argued that the business cycle resulted from the central bank's inflationary credit expansion and its transmission over time, leading to a capital misallocation caused by the artificially low interest rates.

Hayek stressed that the society was to be a scholarly community arguing against collectivism, while not engaging in public relations or propaganda.

Significantly, Hayek challenged the general view among British academics that fascism was a capitalist reaction against socialism, instead arguing that fascism and socialism had common roots in central economic planning and the power of the state over the individual.

Economic sociologist Karl Polanyi made a case diametrically opposed to Hayek, arguing that unfettered markets had undermined the social order and that economic breakdown had paved the way for the emergence of dictatorship.

Hayek ( 1899 – 1992 ) in 1944 galvanized opponents of the New Deal by arguing that the left in Britain was leading that nation down the " road to serfdom ".

Therefore, Hayek argues, individuals must acquire data through prices in real markets.

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.

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.

Economist and philosopher Friedrich Hayek wrote about emergence in the context of law, politics, and markets.

While the idea of laws and markets as emergent phenomena comes fairly naturally to an economist, and was indeed present in the works of early economists such as Bernard Mandeville, David Hume, and Adam Smith, Hayek traces the development of ideas based on spontaneous-order throughout the history of Western thought, occasionally going as far back as the presocratics.

Hayek ( 1935 ) argued against the proposal to simulate markets with equations.

While neoclassical theory uses the conditions of perfect markets to describe the conditions under which it will work, neoliberal theory rejects those in favour of ideas based largely on the work of Friedrich von Hayek and Milton Friedman and broadly argues that perfect markets occur naturally provided that economic and political freedoms are present and maintained.

Neoliberals justify their views through the work of Hayek, who viewed the free price system of free markets as a system which exchanged information very efficiently about the state of the economy as prices fluctuated to supply and demand, an idea which was developed into the efficient-market hypothesis.

Although Hayek believed that government intervention in markets would lead to a loss of freedom, he recognized a limited role for government to perform tasks of which free markets were not capable:

Although a strong advocate of capitalism, Whitman is a critic of free markets in the sense advocated by Milton Friedman and Friedrich Hayek.

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

As for socialism, Mises ( 1944 ) and Hayek ( 1937 ) insisted that bureaucrats in individual ministries could never coordinate their plans, not without a price system.

Mises and Hayek saw centralization as inevitable in socialism.

Hayek ( 1935, 1937, 1940, 1945 ) stressed the knowledge problem of central planning, partly because decentralized socialism seemed indefensible.

Hayek was concerned about the general view in Britain's academia that fascism was a capitalist reaction to socialism and The Road to Serfdom arose from those concerns.

Through analysis of this and other of Hayek's works, Block purports, " in making the case against socialism, Hayek was led into making all sort of compromises with what otherwise appeared to be his own philosophical perspective – so much so, that if a system was erected on the basis of them, it would not differ too sharply from what this author explicitly opposed.

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.

By 1947, Hayek was an organizer of the Mont Pelerin Society, a group of classical liberals who sought to oppose what they saw as socialism in various areas.

Hayek felt that application of Keynes's policies would give too much power to the state and would lead to socialism.

Critics of the British mixed economy, including Ludwig von Mises and Friedrich von Hayek, argued that what is called a mixed economy is a move toward socialism and increasing the influence of the state.

Austrian economists such as Ludwig Von Mises and Friedrich Hayek for example continually used the word " socialism " as a synonym for state socialism and central planning.

He further explained in Dissent in 1992 that " capitalism has been as unmistakable a success as socialism has been a failure " and complimented Milton Friedman, Friedrich Hayek, and Ludwig von Mises on their insistence of the free market's superiority.

Hayek referred to Eastman's life and to his repudiation of socialism in his widely read The Road to Serfdom, and, in turn, Eastman arranged for the serialization of the future Nobel laureate's work in Reader's Digest.

Hayek analyzes the roots of Nazism in socialism, then draws parallels to the thought of British leaders:

I think the Adam Smith role was played in this cycle the late twentieth century collapse of socialism in which the idea of free-markets succeeded first, and then special events catalyzed a complete change of socio-political policy in countries around the world by Friedrich Hayek ’ s The Road to Serfdom.

The price conveys embedded information about the abundance of resources as well as their desirability which in turn allows, on the basis of individual consensual decisions, corrections that prevent shortages and surpluses ; Mises and Hayek argued that this is the only possible solution, and without the information provided by market prices socialism lacks a method to rationally allocate resources.

Hayek argued that the road to socialism leads society to totalitarianism, and argued that fascism and Nazism were the inevitable outcome of socialist trends in Italy and Germany during the preceding period.