Week 06 -- Central Planning and Totalitarianism

The Road to Serfdom

In 1944, Friedrich Hayek published The Road to Serfdom, his now famous warning about how central planning inevitably leads to totalitarianism.

The abridged version of the book can be downloaded for free here.

There are eighteen mileposts along The Road to Serfdom (cf. pp. 72-89):

  1. War forces “national planning”
    (To permit total mobilization of your country’s economy, you gladly surrender many freedoms.)
  2. Many want “planning” to stay …
    (Arguments for a “peace production board” are heard before the war ends. Wartime “planners” who want to stay in power, encourage the idea.)
  3. The “Planners” promise Utopias …
    (A rosy plan for farmers goes well in rural areas, a plan for industrial workers is popular in cities—and so on.)
  4. but they can’t agree on ONE Utopia
    (With the country now at peace, “win the war” unity is gone; the “planners” nearly come to blows.)
  5. And citizens can’t agree either …
    (When the “planners” finally patch up a temporary plan months later, citizens in turn disagree. What the farmer likes, the factory worker doesn’t like, and vice versa.)
  6. “Planners” hate to force agreement …
    (Most “national planners” are well-meaning idealists and balk at any use of force. They hope for some miracle of public agreement as to their patchwork plan.)
  7. They try to “sell” the plan to all …
    (In an unsuccessful effort to educate people to hold uniform views, “planners” establish a giant propaganda machine—which will be quite handy to an aspiring dictator.)
  8. The gullible to find agreement …
    (Meanwhile, growing national confusion leads to protest meetings. The least educated—thrilled and convinced by fiery oratory—form a party.)
  9. Confidence in “planners” fades …
    (The more that the “planners” improvise, the greater the disturbance to normal business. Everybody suffers. People now feel—rightly—that “planners” can’t get things done! )
  10. The “strong man” is given power …
    (In desperation, “planners” authorize the new party leader to hammer out a plan and force its obedience. Later, they’ll dispense with him—or so they think.)
  11. The party takes over the country …
    (By now, confusion is so great that obedience to the new leader must be obtained at all costs. Maybe you join the party yourself to aid national unity.)
  12. A negative aim welds party unity …
    (Early step of all dictators is to inflame the majority in common cause against some scapegoat minority.)
  13. No one opposed the leader’s plan …
    (It would be suicide; new secret police are ruthless. Ability to force obedience always becomes the No. 1 virtue in the “planned state.” Now all freedom is gone.)
  14. Your profession is “planned” …
    (The wider job choice promised by now defunct “planners” turns out to be a tragic farce. “Planners” never have delivered, never will be able to.)
  15. Your wages are “planned” …
    (Divisions of the wage scale must be arbitrary and rigid. Running a “planned state” from central headquarters is clumsy, unfair, inefficient.)
  16. Your thinking is “planned” …
    (In the dictatorship, unintentionally created by the planners, there is no room for difference of opinion. Posters, radio, press—all tell you the same lies! )
  17. Your recreation is “planned” …
    (It is no coincidence that sports and amusements have been carefully “planned” in all regimented nations.)
  18. Your disciplining is “planned” …
    (If you’re fired from your job, it’s apt to be by a firing squad. What used to be an error has now become a crime against the state. Thus ends the road to serfdom! )

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