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The article presents theory of spontaneous order well-developed and promoted by Friedrich August von Hayek. According to him, the majority of human social institutions, such as 'inter alia' law, language and money was not created as a result of deliberate plan, but evolved spontaneously. For Hayek all conscious and planned attempts to reduce spontaneous social phenomena show the pride of human mind and therefore lead only to disrupt the proper functioning of the community. In fact, the more complex social order, the lower the possibility of conscious control and purposeful organization. Conscious control of social processes leads inevitably to the collapse of law understood as 'the rule of law' and leads us straight to the law understood as an instrument of control over society
The author discusses the Austrian School arguments against socialism and central planning. The article presents arguments about the impossibility of rational economic calculation in socialism. It shows that economic planning is a threat to freedom and the rule of law.
The study sets out to give a clear, comprehensible, systematic account of the teachings of the founders of the new Austrian school: Mises, Hayek, and its present leading figure, Kirzner. The new Austrian economists do not follow their Neoclassical peers in focusing on equilibrium price. Their concern is with the market processes maintained endogenously and kept in ceaseless motion by resourceful, innovative, creative entrepreneurs. The conditions for their activity are not prior conditions; the entrepreneurs themselves strive to acquire the knowledge required for their economic decisions, through trial and error. They exploit price differences caused by imperfection in the discernment of agents on local markets, shape consumer preferences, and introduce new production techniques. Entrepreneurs are pushed into ceaseless innovation to gain advantage in their competitive battles. New knowledge displayed by resourceful entrepreneurs then spreads slowly through the operation of the price mechanism, obliging market agents to make ceaseless adjustments and keeping the market in continual motion. The study compares Neoclassical and New Austrian teachings, identifying the new ideas and the shortcomings in the latter: market order and regularities can be explored only on the level of current knowledge, not in the economy in ceaseless motion.
Two great modern classical liberals, Friedrich von Hayek and Milton Friedman were very influential economists. Their works on economic method and methodology are worth particular attention. Despite similarities in their ideology, their views in the field of philosophy of science were poles apart, although at the same time they both considered themselves to be followers of Popper. This paper attempts to resolve the issue of who might be closer to this philosopher. The first section introduces the main task. The second section briefly describes Popper's idea of falsification. The third section summarizes Friedman's famous essay on method. The fourth section presents Hayek's approach as opposed to it. The fifth section offers concluding comments.
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