Hayek's Philosophical Criticism Of The Planned Economic System

Hayek, whose thought involves economics, political philosophy, law and ethics, etc, is the representative of western liberalism school in the 20th century. For defending the ideal of liberalism, Hayek devoted himself into criticize the planned economy with comprehensive and systematic criticism. This dissertation introduced Hayek's critique thought from four aspects of the methodology, knowledge, epistemology and basis for the human design.Individualism, which is a vital content of the western civilization, is the origin of Hayek's critical of planning system. Hayek distinguishes the traditional thought of the two kinds of individualism. He makes a further criticism of various so-called individualism hypocritical individualism infact, and reveals the dangerous consequences caused by the"pseudo individualism". In the theory of knowledge, Hayek thinks the whole social knowledge is dispersive. Knowledge is held by every one in different degree. Knowledge held by each person is only a small part of all, and no one or organization can master all knowledge. So, people's cognitive ability is limited, especially more inevitable ignorance in social field. In terms of epistemology, Hayek divided rationalism into"constructive rationalism"and"evolutional rationalism", and pointed of that, human is selfish and short-sighted, human ration is limited, it is not that human ration constructes the system that societyworks. Unlike Hayek think that the human nature is not selfish and shortsighted. They think people rational are limited, and the system which makes society operate orderly is not constructed out by rational. In the section which criticizes the man-made order, Hayek firstly shows the differences between spontaneous order and man-made order. He summarizes that the man-made order is the human rational construction, while the spontaneous order is the product of action but not the design. Man-made order which is designed by human is certain complex, while the spontaneous order may achieve arbitrary complexity. In planning and organization society, individual in society must be based on the organization's unified planning and orders. In spontaneous order society, the individual can use one's own ingenuity under the"general behavior rule". After distinguished of the two orders, Hayek make a crucial critic on the fairness, equality and efficiency view advocated by man-made order.Hayek's critical thinking of planning system, in bringing greater attention to safeguarding our rights of individual subjectivity, follow the rules, respect for tradition, improve government administration and other aspects, is of the important concept of enlightenment.