The Road to Serfdom: Text and Documents–The Definitive Edition by Friedrich August von Hayek
My rating: 4 of 5 stars
There was much confusion after WWII about the definitions of Fascism and Socialism. In the West, many politicians and scholars believed that socialism would work in a democratic society. It seems to me that the confusion still exists today. That makes The Road to Serfdom a timeless classic.
Hayek shows that socialism will inevitably lead to totalitarianism and economic ruin. He pulls heavily from influential works during his time, and references the evils of Nazi Germany throughout the book. His point is that a planned economy is a doomed economy because no central planner can effectively manage something as complex as market forces. The fall of Soviet Russia clearly underscores his point, and yet we find ourselves following that same path today.
The only complaint I have is that Hayek makes frequent exceptions for some government programs, such as specific wartime controls, and welfare programs. I think his case would be stronger if he argued that ALL government controls on the economy dampen market forces and lead to worsening economic conditions. I think that he, and his mentor Mises, both strengthened their free market positions later in their careers, so maybe I’ll see some of that as I read more of their work.
Overall, a great, and relatively easy read. I recommend it for anyone interested in individual rights and classical liberal economics.