Thursday, August 06, 2020

Hayek on economic Freedom and Security

In the chapter on Freedom and Security in the Road to Serfdom, Hayek observes:

"the policies which are now followed everywhere, which hand out the privilege of security, now to this group and now to that, are nevertheless rapidly creating conditions in which the striving for security tends to become stronger than the love of freedom. The reason for this is that with every grant of complete security to one group the insecurity of the rest necessarily increases. If you guarantee to some a fixed part of a variable cake, the share left to the rest is bound to fluctuate proportionally more than the size of the whole."

He was of course speaking of economic freedom, the freedom to engage in productive activities of our choice but it seems quite apt for the politics of Sri Lanka.

The problem he argues is that if economic security is to be guaranteed society must be organised on military lines. 

No comments: