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Friedrich A. Hayeks Individualism and Economic Order Summary - Essay Example

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The paper "Friedrich A. Hayek’s Individualism and Economic Order Summary" states that themes used by the writer indeed became the central ideas around which the entire book, which is actually made up of a collection of writings was written. Four of these basic ideas are summarized in the paper…
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Friedrich A. Hayeks Individualism and Economic Order Summary
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Download file to see previous pages The themes used by the writer indeed became the central ideas around which the entire book, which is actually made up of a collection of writings was written. Four of these basic ideas are summarized below. Facts and Fallacies of Individualism The economist holds a basic idea that individualism, and for that matter social order is neither a fact nor a fallacy but that it is both a true and false. First, the economist writes to associate individualism more to be a social order whereby regardless of the fact that people are expected to behave and react in a certain individualistic manner to meet their economic needs of life, they are at the same time obliged to act according to the larger interest of society. From this perspective, the economist goes on further to give vivid reasons why individualism and for that matter, the social order could be considered to be false. The explanation given is that “in social matters, one does not adhere to fixed principles but decides each question "on its merits"; that one is generally guided by expediency” (Hayek, 1996, p. 1). Invariably, the writer is implying that no individual would be robotic to economic principles even when those principles deny him food on his table. This is what makes individualism true because people function economically according to the dictates of their conditions. On the other hand, there is a justification given as to why individualism and economic order could be true. With this, the economist explains that “principles, have a way of asserting themselves even if they are not explicitly recognized but are only implied in particular decisions (Hayek, 1996, p. 1).” In other words, even if a person defies the provisions of economic principles, the core values of these principles remain a fact and thus true. The use of Knowledge in Society In the second theme and basic knowledge explicitly outlined by the economist, he visits the availability of knowledge and the use of it thereof in modern society. Whiles doing this, the economist related economies to social science by making the assertion that the provisions that make social existence possible form the basis of rational economic order (Gabby, 2005). To this, the economist emphasizes the point that what society really needs to manage its rational economic order is logic. By logic, the economist talks of using common sense presented at the individual stage of getting things worked out for a person. A clear sense, therefore, an endorsement is made by the writer of individualism as a fact by raising the point of logic. The economist further throws light on the fact that the logic needed to make things work out for individual entities within society comes about as a result of making use of available information, and thus knowledge. ...Download file to see next pagesRead More
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