Essential Hayek: The Challenge of Living in a Modern Society

This is part of a Fraser Institute project to present the ideas of F.A. Hayek. In this video, we explore one of Hayek's more complex theories, the concept of how living in a modern society involves two sets of very different interactions: those that occur among our family and friends, and those that occur in the modern world.

[petergutierrez]

Towards the end of his long career, Hayek wrote the book "The Fatal Conceit" in which he explains the existence of ethical dualism in modern societies. The small groups ethics, a system which evolved during our times as hunter-gatherer tribes, versus the "extended order" ethics which emerged during the agricultural revolution to accommodate for the realities of our economic interactions with strangers in ever larger cities. 

I used the word "evolved", as these ethical systems were not designed by a rational mind, but rather emerged through evolutionary processes (think trial and error) at the intersection between our instincts and reason.


I also just ordered the book and I can't wait to read it.

[ludwigvonmises]

Firstly I don't think anarchy can last. Lessons from history teach us this. The world started without any government to begin with.

But I think if very piece of land and water is owned by private entity, it is up to private owners to decide what actions to be taken. Since every private owner competes with others either for profits or for his benevolent cause or for whatever reason, he has to make sure his citizens, workers, and consumers are safe and healthy., otherwise people would run to his competitor who is better or worse still they may just die. Hence, decentralized competition among private owners will produce the best way to deal with the crisis. Of course, all healthcare providers will be super effective and efficient because they operate in super competitive environment without any interference of state.