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Hayekwas an Austrian-British economistand philosopher who is best known for his defence of classical liberalism. Hayek served in World War I during his teenage years and said that this experience in the war and his desire to help avoid the mistakes that had led to the war drew him into economics. Although he is widely considered a leader of the Austrian School of Economicshe also had close connections with the Chicago School of Economics, john stossel essay contest. Hayek was appointed a Companion of Honour in for his academic contributions to economics.
Friedrich August von Hayek was born in Vienna to August von Hayek and Felicitas Hayek née von Juraschek. His father, born in also in Vienna, was a medical doctor employed by the municipal ministry of health. His father's career as john stossel essay contest university professor influenced Hayek's goals later in life, john stossel essay contest.
He wrote works in the field of biological systematics, some of which are relatively well known. On his mother's side, Hayek was second cousin to the philosopher Ludwig Wittgenstein.
As a result of their family relationship, Hayek became one of the first to read Wittgenstein's Tractatus Logico-Philosophicus when the book was published in its original German edition in Since his youth, Hayek frequently socialized with Jewish intellectuals john stossel essay contest he mentions that people often speculated whether he was also of Jewish ancestry.
That made him curious, so he spent some time researching his ancestors and found out that he has no Jewish ancestors within five generations. Hayek displayed an intellectual and academic bent from a very young age and read fluently and frequently before going to school.
He preferred to associate with adults, john stossel essay contest. InHayek joined an artillery regiment in the Austro-Hungarian Army and fought on the Italian front.
During this time, Hayek also survived the flu pandemic. Hayek then decided to pursue an academic career, determined to help avoid the mistakes that had led to the war, john stossel essay contest. Hayek said of his experience: "The decisive influence was really World War I. It's bound to draw your attention to the problems of political organization". He vowed john stossel essay contest work for a better world, john stossel essay contest.
At the University of ViennaHayek initially studied mostly philosophy, psychology and economics. For a short time, when the University of Vienna closed he studied in Constantin von Monakow 's Institute of Brain Anatomy, where Hayek spent much of his time staining brain cells.
During Hayek's years at the University of Vienna, Carl Menger 's work on the explanatory strategy of social science and Friedrich von Wieser 's commanding presence in the classroom left a lasting influence on him.
He had very limited social contacts, missed the cultural life of Vienna, and was troubled by his poverty. Initially sympathetic to Wieser's democratic socialism he found Marxism rigid and unattractive, and his mild socialist phase lasted until he was about It was during this time that he also encountered and befriended noted political philosopher Eric Voegelinwith whom he retained a long-standing relationship.
With the help of Mises, in the late s he founded and served as director of the Austrian Institute for Business Cycle Research before joining the faculty of the London School of Economics LSE in at the behest of Lionel Robbins. Lerner and many others in the development of modern microeconomics. InHayek suggested that private investment in the public markets was a better road to wealth and economic co-ordination in Britain than government spending programs as argued in an exchange of letters with John Maynard Keynesco-signed with Lionel Robbins and others in The Times.
Notable economists who studied with Hayek at the LSE in the s and s include Arthur LewisRonald CoaseWilliam BaumolJohn Kenneth GalbraithLeonid Hurwiczjohn stossel essay contest, Abba Lernerjohn stossel essay contest, Nicholas KaldorGeorge ShackleThomas BaloghL. Jhajohn stossel essay contest, Arthur SeldonPaul Rosenstein-Rodan and Oskar Lange. Hayek also taught or tutored many other LSE students, including David Rockefeller, john stossel essay contest.
Unwilling to return to Austria after the Anschluss brought it under the control of Nazi Germany inHayek remained in Britain. Hayek and his children became British subjects in He lived in the United States from to and then mostly in Germany, but also briefly in Austria.
InHayek was elected a Fellow of the Econometric Society, john stossel essay contest. 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.
The book is widely popular among those advocating individualism and classical liberalism. InHayek left the London School of Economics. After spending the — academic year as a visiting professor john stossel essay contest the University of ArkansasHayek was conferred professorship by the University of Chicago, where he became a professor in the Committee on Social Thought.
Hayek had made contact with many at the University of Chicago in the s, with John stossel essay contest The Road to Serfdom playing a seminal role in transforming how Milton Friedman and others understood how society works.
Although they shared most political beliefs, disagreeing primarily on question of john stossel essay contest policy, [77] Hayek and Friedman worked in separate university departments with different research interests and never developed a close working relationship. Ebensteinwho wrote biographies of both of them, Hayek probably had a closer friendship with Keynes than with Friedman. Hayek received a Guggenheim Fellowship in Another influential political philosopher and German-speaking exile at the University of Chicago at the time was Leo Straussbut according to his student Joseph Cropsey who also knew Hayek, there was no contact between the two of them.
After editing a book on John Stuart Mill 's letters he planned to publish two books on the liberal order, The Constitution of Liberty and "The Creative Powers of a Free Civilization" eventually the title for the second chapter of The Constitution of Liberty. Hayek was concerned that "with that condition of men in which coercion of some by others is reduced as much as is possible in society".
He left Chicago mostly because of financial reasons, being concerned about his pension provisions. From until his retirement inhe was a professor at the University of FreiburgWest Germany, where he began work on his next book, Law, Legislation and Liberty. Hayek regarded his years at Freiburg as "very fruitful". Hayek became a professor at the University of Salzburg from to and then returned to Freiburg.
The economics department was small and the library facilities were inadequate. Although Hayek's health suffered, and he fell into a depressionary bout, he continued to work on his magnum opusLaw, Legislation and Liberty in periods when he was feeling better.
On 9 Octoberit was announced that Hayek would be awarded the Nobel Memorial Prize in Economics with Swedish economist Gunnar Myrdalwith the reasons for selection being listed in a press release. Among the reasons given, the committee stated, Hayek "was one of the few economists who gave warning of the possibility of a major economic crisis before the great crash came in the autumn of An interviewer asked, "We understand that you were one of the only economists to forecast that America was headed for a depression, is that true?
During the Nobel ceremony in DecemberHayek met the Russian dissident Aleksandr Solzhenitsyn. In FebruaryMargaret Thatcher was elected leader of the British Conservative Party. The Institute of Economic Affairs arranged a meeting between John stossel essay contest and Thatcher in London soon after.
Before he had finished, Thatcher "reached into her briefcase and took out a book. It was Hayek's The Constitution of Liberty. Interrupting our pragmatist, she held the book up for all of us to see, john stossel essay contest. Despite the media depictions of him as Thatcher's guru and power behind the throne, the communication between him and the Prime Minister was not very regular, they were in contact only once or twice a year.
Hayek gained some controversy in by praising Thatcher's anti-immigration policy proposal in an article which ignited numerous accusations of anti-Semitism and racism because of his reflections on the inability of assimilation of Eastern European Jews in the Vienna of his youth.
InHayek was critical of the Lib—Lab pact in which the British Liberal Party agreed to keep the British Labour government in office. Writing to The TimesHayek said: "May one who has devoted a large part of his life to the study of the history and the principles of liberalism point out that a party that keeps a socialist government john stossel essay contest power has lost all title to the name 'Liberal'.
Certainly no liberal can in future vote 'Liberal'". Lord Gladwyn pointed out that the German Free Democrats were in coalition with the German Social Democrats. InHayek came into conflict with Liberal Party leader David Steelwho claimed that liberty was possible only with "social justice and an equitable distribution of wealth and power, which in turn require a degree of active government intervention" and that the Conservative Party were more concerned with the connection between liberty and private enterprise than between liberty and democracy.
Hayek claimed that a limited democracy might be better than other forms of limited government at protecting liberty, but that an unlimited democracy was worse than other forms of unlimited government because "its government loses the power even to do what it thinks right if any group on which its majority depends thinks otherwise".
Hayek stated that if the Conservative leader had said "that free choice is to be exercised more in the market place than in the ballot box, she has merely uttered the truism that the first is indispensable for individual freedom while the second is not: free choice can at least exist under a dictatorship that can limit itself but not under the government of an unlimited democracy which cannot".
Hayek supported Britain in the Falklands Warwriting that it would be justified to attack Argentinian territory instead of just defending the islands, which earned him a lot of criticism in Argentina, a country which he also visited several times. He was also displeased by the weak response of the United States to the Iran hostage john stossel essay contestclaiming that an ultimatum should be issued and Iran bombed if they do not comply.
He supported Ronald Reagan's decision to keep high defence spending, believing that a strong US military is a guarantee of world peace and necessary to keep the Soviet Union under control. InHayek, a non-practicing Catholic, [] was one of twelve Nobel laureates to meet with Pope John Paul II "to dialogue, john stossel essay contest, discuss views in their fields, communicate regarding the relationship between Catholicism and science, and 'bring to the Pontiff's attention the problems which the Nobel Prize Winners, in their respective fields of study, consider to be the most urgent for contemporary man'" [].
Hayek was appointed a Companion of Honour CH in the Birthday Honours by Elizabeth II on the advice of British Prime Minister Margaret Thatcher for his "services to the study of economics". Frederick from now on, john stossel essay contest.
After his twenty-minute audience with the Queen, he was "absolutely besotted" with john stossel essay contest according to his daughter-in-law Esca Hayek. Hayek said a john stossel essay contest later that he was "amazed by her. That ease and skill, as if she'd known me all my life".
The audience with the Queen was followed by a dinner with family and friends at the Institute of Economic Affairs. When later that evening Hayek was dropped off at the Reform Clubhe commented: "I've just had the happiest day of my life".
John stossel essay contestPresident George H, john stossel essay contest. Bush awarded Hayek the Presidential Medal of Freedomone of the two highest civilian awards in the United States, for a "lifetime of looking beyond the horizon". Hayek died on 23 Marchaged 92, in FreiburgGermany and was buried on 4 April in the Neustift am Walde cemetery in the northern outskirts of Vienna according to the Catholic rite.
The New York University Journal of Law and Liberty holds an annual lecture in his honor. Ludwig von Mises had earlier applied the concept of marginal utility to the value of money in his Theory of Money and Credit in which he also proposed an explanation for "industrial fluctuations" based on the ideas of the old British Currency School and of Swedish economist Knut Wicksell. There, Hayek argued for a monetary approach to the origins of the cycle.
In his Prices and ProductionHayek 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's analysis was based on Eugen Böhm von Bawerk 's concept of the "average period of production" and on the effects that monetary policy could have upon it.
InLionel Robbins assumed the helm of the London School of Economics LSE. Also inHayek crititicized John Maynard Keynes 's Treatise on Money in his "Reflections on the pure theory of Mr.
Keynes" [] and published his lectures at the LSE in book form as Prices and Production, john stossel essay contest. Sraffa elaborated on the effect of inflation-induced "forced savings" on the capital sector and about the definition of a "natural" interest rate in a growing economy see Sraffa—Hayek debate. Hayek's work, throughout the s, was largely ignored, except for scathing critiques by Nicholas Kaldor. Hayek never produced the book-length treatment of "the dynamics of capital" that he had promised in the Pure Theory of Capital.
Milton Friedman declared himself "an enormous admirer of Hayek, but not for his economics. I think his [ Pure Theory of Capital ] is unreadable. On the other hand, The Road to Serfdom is one of the great books of our time".
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, time: 54:35Friedrich Hayek - Wikipedia

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