The Road To Serfdom by F.A. Hayek Presentation and systemic diagram copyright © 1996, 1997, 1998 by Barry and Deborah Brownstein

Is There a Common Good? “The ''social goal" or "common purpose" for which society is to be organized is usually vaguely described as the "common good," the "general welfare," or the "general interest."...The welfare and the happiness of millions cannot be measured on a single scale of less and more.”

What Is Substantive Law? Where the precise effects of government policy on particular people are known, where the government aims directly at such particular effects, it cannot help knowing these effects, and therefore it cannot be impartial. It must, of necessity, take sides, impose its valuations upon people and, instead of assisting them in the advancement of their own ends, choose the ends for them.

What Is Formal Law? l “It is the Rule of Law, in the sense of the rule of formal law; the absence of legal privileges of particular people designated by authority, which safeguards the equality before the law which is the opposite of arbitrary government.” l “The Rule of Law thus implies limits to the scope of legislation: it restricts it to the kind of general rules known as formal law and excludes legislation either directly aimed at particular people or enabling anybody to use the coercive power of the state for the purpose of such discrimination.”

Hayek, The Road to Serfdom systemic diagram copyright 1996 by Barry and Deborah Brownstein Majority agree on use of government to direct the economy No majority agreement on precise goals (ends) of an economic plan Democratic Legislative Body Undermines individual freedom to act on personal values Failure to produce agreement Experts rely on subjective values, preferences Belief in "Common Interest" Legislators attempt agreement on "substantive law" for a plan Rules have differential effects on people Experts write "substantive" rules Government Agency Electoral mandates for "common interest" Delegate "technical details" Experts use "discretion" "Comprehensive" plan is fragmented Tends toward despotism Conflicts among agencies Subjective values of individuals Undermines "formal Rule" of Law Value 2 Citizens dissatisfied with democratic institutions Citizens support taking planning "out of politics" Value 1 Value i groups with concentrated benefits lobby Social conflict increases Individuals fail to act (costs spread out)