Friedrich Hayek Quotes
This is not a dispute about whether planning is to be done or not. It is a dispute as to whether planning is to be done centrally, by one authority for the whole economic system, or is to be divided among many individuals.
Hayek, Friedrich A. "The Use of Knowledge in Society." The American Economic Review, vol. 35, no. 4, 1945, p. 520.
This quotation illustrates White’s favorable view of Russia. Note his use of the “it works” phrase which he picked up from Stefens’ famous quote {634892}. At the time the Soviet Union had been perceived by many economists to have been a great economic improvement over Czarist Russia. And over all, Russia which in 1917 was an economic basket case, had become one of the stronger states in Europe although the Russian people paid a horrendous price. Most historians agree that White passed classified information to the Russians. He was accused of being a Communist, but there was never any evidence of that. Some people believe that he was a spy for the Russians and committed espionage, but others disagree observing that White was very much his own man and felt that much information that was classified never should have been. White substituted his own judgment, it is believed, about what could be given to the Russians for the security system. He was an admirer of what Russian socialism had accomplished economically, educationally and medically since the 1917 revolution deposing the Czar. Russia had been a valuable military ally, which had taken the brunt of both military and civilian casualties in WWII. White’s economics were certainly not Marxist but very much Keynesian. He was subpoenaed by the House Un-American Activities Committee where he was accused of being a Communist which he denied (see {634907}). He died of a heart attack 3 days later.
At the time extreme socialist doctrine was that the state should own the factories and the other means of industrial production. The socialists believed that the people through their government had to be able to control the economy and the private owners’ greed would always drive the economy for themselves and not for the society in general. Deal was one of the first who argued that there were other, less draconian modes of economic control like government regulation and central banks. Deat turned traitor during WWII and served in the Vichy Nazi cabinet of Pierre Laval. He was sentenced to death for treason but escaped to Italy where he assumed a new identity and then was sheltered by a right-wing Catholic religious order in the convent of San Vito, near Turin, where he wrote his memoirs and lived undiscovered until his death.
Friedrich August von Hayek CH FBA, often referred to by his initials F. A. Hayek, was an Austrian-British economist and philosopher who is best known for his defence of classical liberalism. Hayek shared the 1974 Nobel Memorial Prize in Economic Sciences with Gunnar Myrdal for his "pioneering work in the theory of money and economic fluctuations and [...] penetrating analysis of the interdependence of economic, social and institutional phenomena". His account of how changing prices communicate information that helps individuals co-ordinate their plans is widely regarded as an important achievement in economics, leading to his Nobel Prize.
