1775) Von Mises (1938) - A Planned Economy

What Price a Planned Economy?
by Friedrich A. Hayek
Contemporary Review of London, April 1938

I

The link between classical liberalism and present-day Socialism — often still misnamed liberalism — is undoubtedly the belief that the consummation of individual freedom requires relief from the most pressing economic cares. If this seems attainable only at the price of restricting freedom in economic activity, then that price must be paid; and it may be conceded that most of those who want to restrict private initiative in economic life do so in the hope of creating more freedom in spheres which they value higher.

So successfully has the socialist ideal of freedom — social, economic and political been preached that the old cry of the opponents that socialism means slavery has been completely silenced. Probably the great majority of the socialist intellectuals regard themselves as the true upholders of the great tradition of intellectual and cultural liberty against that threatening monster — the authoritarian Leviathan.

Yet here and there, in the writings of some of the more independent minds of our time who have generally welcomed the universal trend toward collectivism, a note of disquiet can be discerned. The question has forced itself upon them whether some of the shocking developments of the past decades may not be the necessary outcome of the tendencies which they had themselves favored.

There are some elements in the present situation which strongly suggest that this may be so, such as the intellectual past of the authoritarian leaders, and the fact that many of the more advanced socialists openly admit that the attainment of their ends is not possible without a thorough curtailment of individual liberty.

We see that the similarity between many of the most characteristic features of the "fascist" and the "communist" regimes becomes steadily more obvious. Nor is it an accident that in the fascist states a socialist is often regarded as a potential recruit, while the liberal of the old school is recognized as the arch-enemy.

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