The fourth part of the Road to Serfdom tells how state planning destroys the rule of law. In the situation of planned economy, the state gives itself unlimited rights for planning, regulation and control all spheres of the country’s life. The state goes so far on this road, that starts determining needs of various people.
What does the planned economy results into and if there is an alternative for it – read in the next part of the translation of the Road to Serfdom, performed by the donations of the readers of the Cost the State project.
The third part of the Road of Serfdom tells, that planned economy cannot be built without dictatorship, without stepping over the norms of moral and humanism. From a collectivist’s perspective, diversity of views, ideas and thoughts pose a danger to the ‘common wellbeing’. This is why lack of respect to life and happiness of an individual, intolerance and oppression of any alternative way of thinking becomes justified.
As soon as you hear that an individual is only an instrument for serving the society of the nation, you should know this is the shortest way to the horrors of totalitarism
The second part of The Road to Serfdom is about the idea, that competition much better coordinates people’s actions in the society than state regulations. The state should interfere only when market rules do not work: for instance, to secure equality before the law, limit monopolies or protect environment. State officials should not substitute free market forces because to have similar impact they would need to exercise much more power, which would inevitably lead to dictatorship.
Finally we are happy to present translation of the first part of The Road to Serfdom book by Friedrich von Hayek! It became possible thanks to everyone who donated for translation.
The goal of the book is to warn about the dangers of socialism. It is important to note that Friedrich von Hayek did not doubt high moral values of some socialists but he did doubt the instrument – state control over economy.
Israel today is one of the most developed countries in the world, despite the armed conflict in the country. However, at the end of 1970s – beginning of 1980s Israel was very much like Ukraine today: war, awful inflation, double-digit deficit, triple-digit debt, empty gold value reserves, threat of default, controlled National Bank, corruption, excessive state apparatus and unstable support from the US.
Who brought the state into such a condition and what steps saved Israel and made it into the first-world country in the situation of constant external threat – read in our article.
The Philippines are known in history as the country which had the longest run of IMF programs: 23 programs were started in this country during 1962 – 2000. In spite of this, since 1960s the Philippines demonstrate the worst economic growth in the region. According to the Human Capital Index, that indicates quality of life and access to education and healthcare, in 2013 the Philippines ranked 177 out of 187 countries. At the same time the country experienced high level of unemployment and critically low tax revenues. Why the country is called ‘sick Asian’ and why low tax burden along with international loans did not push for economic development of the Philippines – read in our article.
Argentine, “the country of silver”, was once a successful country. At the beginning of the 20th century it was one of the ten richest countries in the world. Argentine could easily become the Great Britain or even the United States of the South America. However, after the Second World War the country experienced several ways of inflation and defaults. So what caused the sharp decrease of economy of the country with such a good potential and vast natural resources? We suggest to our readers a translation of extract about the history of defolts in Argentina from “The Ascent of Money” by Niall Ferguson. Translation: Valeria Kotil, intern «Price of the State».
Successful reform is the result of hard work of talented people. Dozens have been trying to replicate successful experience. However, any imitation or procrastination on reformation path has irrevocable consequences. The experience of Chile shows that well-prepared and decisive reforms – is the only way to rescure your country from poverty trap. We suggest to our readers a translation of extract about reforms in Chile from “The Ascent of Money” by Niall Ferguson. Translation: Valeria Kotil, intern «Price of the State».
Ukraine’s pension system has been in need for reforms for a long time already. In this context, it is interesting to learn how other countries went through this process. Here is a story of Argentina’s pension system reform – one of the most interesting in the world.
America was tax-free for much of its early history. It would take a Civil War and two world wars to bring income tax, enterprise profit tax and property tax into the young nation. More about history of taxes in US you can read at “A Short History Of Taxes” by Andrew Beattie . Follow the link and enjoy!