Hayek and the Evolution of Capitalism Hayek and the Evolution of Capitalism NAOMI BECK The University of Chicago Press chicago a nd london The University of Chicago Press, Chicago 60637 The University of Chicago Press, Ltd., London © 2018 by The University of Chicago All rights reserved No part of this book may be used or reproduced in any manner whatsoever without written permission, except in the case of brief quotations in critical articles and reviews For more information, contact the University of Chicago Press, 1427 E 60th St., Chicago, IL 60637 Published 2018 Printed in the United States of America 27 26 25 24 23 22 21 20 19 18 isbn-13: 978-0-226-55600-0 (cloth) isbn-13: 978-0-226-55614-7 (e-book) doi: https://doi.org/10.7208/chicago/9780226556147.001.0001 Library of Congress Cataloging-in-Publication Data Names: Beck, Naomi, 1975 – author Title: Hayek and the evolution of capitalism / Naomi Beck Description: Chicago ; London : The University of Chicago Press, 2018 | Includes bibliographical references and index Identifiers: lccn 2017060710 | isbn 9780226556000 (cloth : alk paper) | isbn 9780226556147 (e-book) Subjects: lcsh: Hayek, Friedrich A von (Friedrich August), 1899 –1992 | Free enterprise | Capitalism Classification: lcc hb101.h39 b435 2018 | ddc 330.12 /2—dc23 LC record available at https://lccn.loc.gov/2017060710 This paper meets the requirements of ansi/niso z39.48-1992 (Permanence of Paper) Contents Introduction: F A Hayek the Avant-Garde Conservative The Road to Evolution From Complexity to Order Believe and Prosper Economic Progress and Its Discontents Conclusion: The Battles of Yesterday Acknowledgments • 161 Notes • 163 References • 165 Index • 175 10 46 82 119 156 introduction F A Hayek the Avant-Garde Conservative The Nobel Laureate in economics Friedrich August von Hayek was undoubtedly one of the most consequential thinkers in the second half of the twentieth century He influenced leading economists such as Milton Friedman, who together with his wife, Rose (1988), defined three “tides” that have characterized social and economic development since the eighteenth century: the Adam Smith tide, the Fabian tide, and the Hayek tide Within the discipline of economics, Hayek ranks second among the most frequently mentioned Nobel Laureates in fellow recipients’ prize lectures (after Kenneth Arrow), and he ranks second in publication citations (Skarbek 2009) His work also influenced prominent policy makers A famous anecdote tells that in 1975, Margaret Thatcher interrupted a Conservative Party debate by banging The Constitution of Liberty (1960) on a table and exclaiming, “This is what we believe!” According to some (Henderson 2005; Yergin and Stanislaw 1998), the Thatcher and Reagan revolutions of the 1980s, and the globalization processes of the 1990s, provide evidence of the dominance of Hayek’s views on economic policy Hayek’s defense of the free market continues to hold sway today In the wake of the 2008 financial crisis, there was a renewed interest in the heated controversy between Hayek and John Maynard Keynes over the role of government in the economy Their debate even became the theme of two rap videos posted on Youtube Then in June 2010, Hayek’s book The Road to Serfdom (1940) reached the top of the sales list on Amazon.com The influence of his ideas has extended well into the electronic age of information technology in the twenty-first century Jimmy Wales, the founder of Wiki- introduction pedia, claimed (see Mangu-Ward 2007), “One can’t understand my ideas about Wikipedia without understanding Hayek,” further specifying that Hayek’s article “The Use of Knowledge in Society”(1945) “is central” to his own thinking “about how to manage the Wikipedia project.” In this article, as Wikipedia’s entry under the same title recounts, Hayek argues that information is decentralized: each individual knows only a small fraction of what is known collectively As a result, decisions are best made by those with local knowledge rather than by a central authority Wikipedia indeed puts into practice the belief that the most comprehensive and objective view is furnished by multiple contributors rather than a handful of specialists Without detracting from Hayek’s success, briefly reviewed above, it is also true that his reputation has suffered considerable lows In 2004, Virginia Postrel wrote a piece entitled “Friedrich the Great” for the Boston Globe in which she proposed to reintroduce to her readers “one of the most important thinkers you’ve barely heard of.” Postrel argued that well-educated, intellectually curious people in the United-States who nod at mentions of the likes of Max Weber, Hannah Arendt, or Michel Foucault hardly know who Hayek was In the same article she quotes Hayek biographer Bruce Caldwell, who explains: “For most of his life, Hayek’s economic and political positions were completely out of sync with those of the rest of the intelligentsia [and] for much of the century he was a subject of ridicule, contempt, or, even worse for a man of ideas, indifference.” Initially, this situation was the result of the hegemony of Keynes’s view Later on, it was the price Hayek had to pay for his opposition to the new brand of economics that emerged after World War II, and for his move away from technical analysis to wide-ranging interdisciplinary research Hayek was destined to become Keynes’s formidable opponent— or at least this was the intention of Lionel Robbins, the director of the London School of Economics, who nominated Hayek for a professorship at the age of thirty-two in the hope that he would help counter the influence of Keynes and his colleagues at Cambridge University But Hayek lost the battle then, while Keynes’s star continued to rise In the mid-1940s, Hayek recalled (1994, 103), “Keynes died and became a saint; and I discredited myself by publishing The Road to Serfdom.” This highly popular book marks a turning point in Hayek’s career On the one hand, its immense and unexpected success, especially in the United-States, brought Hayek worldwide recognition and a professorship at the University of Chicago On the other hand, The Road to Serfdom cornered him into the position of an ideological warrior against socialism instead of a cutting-edge economist The Nobel Laureate f a h ay e k t h e ava n t - g a r de cons e rvat i v e in economics Paul Krugman pithily commented in his New York Times blog (December 5, 2011) that without The Road to Serfdom, which struck a chord with the American Right, nobody would be talking about Hayek’s theories “The Hayek thing,” Krugman concluded, “is almost entirely about politics rather than economics,” his ideas having long vanished from the professional discussion Hayek was indeed an unconventional economist who veered away from technical analysis relatively early in his career in order to pursue epistemological, philosophical, and ethical questions As one of Hayek’s scholars explained (see Boettke 1999), while the scientific fashion was moving the disciplinary circles further apart and narrowing the areas of intersection, Hayek’s main research interests were to be found exactly in those points of intersection He was drawn to questions related to the methodology of the social sciences, the psychology of the human mind, the philosophical and historical foundations of liberalism, and the evolution of civilization Unfortunately, his intellectual home in the 1950s, the University of Chicago, was to become the bastion of a view of economics that Hayek did not share In 1953, Milton Friedman published his influential Essays in Positive Economics, gaining ascendance as the leading voice of the new Chicago school of economics Around the same time, Hayek reissued a series of articles under the title The Counter-Revolution of Science (1952a), in which he attacked positivism Until the end of his life, he was highly skeptical of the formalization of his discipline, and criticized the extensive use of statistics and mathematics in economic analysis As a result, his work is at odds with current trends Practically no one follows his methodology or adheres to the view that mathematical and statistical tools are overused Hayek’s predilection for interdisciplinary research may have made him lose ground as a respectable economist among his peers; it is nonetheless the mark of an open mind, and singles him out as an innovative thinker who, in some respects, was ahead of his time Today, interdisciplinary research in economics is again in demand, and there is growing criticism against the strong reductionism that guides quantification in the field Economics, some argue, has become a social science based on unrealistic assumptions concerning human behavior and its motivations It is the prisoner of its own methods, producing models that ignore essential elements necessary for understanding real-world situations Hayek was ahead of the curve in refusing to adhere to hypothetical 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Review Essay of Unto Others: The Evolution and Psychology of Unselfish Behavior by Sober E and Sloan D W.” Review of Austrian Economics 13: 81– 95 ——— 2004 “Reconciling Group Selection and Methodological Individualism.” In Koppl 2004, 267– 77 Index Acton, H B., 129 adaptation(s), 25, 28, 53, 58, 63, 70– 73, 80, 85, 86, 93, 104, 123, 125, 127, 133, 136 “adaptationism,” 76 agency, human, 6, 8, 32, 70, 94 – 95, 98, 102, 113, 131, 139, 158 agriculture, 107, 120, 123 Amazon.com, 1, 34 analogy(ies), 7, 38, 45, 56, 66 – 67, 78, 89, 98, 138 analysis, 7– 9, 12, 16, 24 – 26, 31, 39 – 40, 43, 47, 49, 52, 55, 61, 73, 81, 88, 93, 102, 106, 112 –13, 118, 127, 131, 137, 140, 142, 147– 48, 151– 52, 155 – 57; economic, 3, 6, 15, 37, 44, 140; evolutionary, – 5; functionalist, 104; political, 147; psychological, 50; social-scientific, 141; technical, – anatomy, 10 Animal Dispersion in Relation to Social Behaviour (Wynne-Edwards), 86 anthropology, 27, 42, 97 anthropomorphism, 38 anti-interventionist position or stance, 95, 143, 145 antirationalist attitude or approach, 23, 103 Aquinas, T., 106 Aristotle, 11, 24, 36, 106 artificial selection See under selection atavistic conceptions or yearnings, 68, 133, 158 Austrian approach or economics or view, 6, 43, 46, 100 Bacon, F., 38 Baechler, J., 108 Barkow, J H., 83 Barry, N., 150 barter, 95, 107, 137 Becker, G., 77, 99 behavior(s), 20, 23, 42, 52, 69 – 71, 73, 79 – 81, 86, 91, 93, 95 – 96, 99 –101, 115, 124, 139; animal, 68, 98; conscious, 51; free-riding, 4; group, 77; human or social, 3, 47, 87, 93, 99, 115; imitative, 71; individual, 44, 74, 77, 79, 94 – 95, 100; moral, 70, 91– 92, 114 –15; prosocial, 4, 6, 90– 93, 127, 158; purposive, 79; rational, 99; selfish, 32, 90; speculative, 75 Beiträge zur Analyse der Empfindungen (Mach), 12 Beiträge zur Theorie der Entwicklung des Bewusstseins (Hayek), 12 Bentham, J., 135 Bertalanffy, L von, 50 bias(es), 68, 74, 76, 91, 108; anthropomorphic, 69, 77 biodiversity, 126 biology, 10–11, 25, 27, 47, 56 – 57, 59 – 60, 63, 66, 80, 87– 88, 93, 118, 125, 127, 157– 58; evolutionary, 4, 57, 59, 64, 67 Birner, J., 83, 105, 151 botany, 10–11, 59 Bourdeau, M., 24, 38 Boyd, R., 67, 70– 72, 74, 93, 110, 115 176 index brain(s), 12, 49, 51– 52, 55 – 56, 69, 79 See also mind(s) Burke, E., 7, 28, 42, 76 business-cycle theory, 15 calculation(s): economic, 15, 140; socialist, 21 Caldwell, B J., 2, 18 – 20, 29, 33, 88, 163n3 (chap 1), 163n1 (chap 2) Cambridge University, 2, 18 Campbell, D T., 80 Cannon, W B., 50 capital: owners, 126; return on, 132; theory, 19, 34 capitalism, 5, 9, 16, 91, 102, 105, 108, 117– 18, 121, 139, 148, 156, 158 – 59; free market, 9, 91, 155, 160 Carr-Saunders, A M., 8, 81, 85 – 86, 158 Carter, J., 122 catallactics, 79, 132 Catallaxy, 79 – 80, 132, 135, 144, 151 categorical imperative, 31 centralization, 30 See also planning: central or centralized Chicago School or Chicago School of Economics, 3, 7, 34 – 35, 46 – 47, 99 choice(s), rational, 16, 18, 77, 93, 99 Christian doctrine, 105 church, 106 civilization, 27, 32, 44, 72 – 73, 83, 92, 107– 8, 113, 115 –19, 121, 123, 134, 149, 153 – 54; advanced or Western, 4, 68, 73, 147; conception of, 73; definition of, 72; development of, 88, 93; European, 108; evolution of, 3, 105, 134; free market, 78, 106; Greek, 107; modern, – 5, 9, 67, 72 – 73, 78, 83, 85, 95, 98, 103, 105, 133, 137, 144, 158 classical economic theory, 125 classical political economy, 27, 105 classification, 11–12, 49 – 52, 55, 64, 69; apparatus of, 49, 52; multiple, 51, 53, 68; reclassification, 39, 55 cognition, 6, 46, 55, 78 Commons, J R., 66 communism, 105, 149 community selection See under selection competition(s), 32, 72, 75, 84 – 85, 90, 94, 96, 99 –100, 109 –12, 118, 123, 125 – 28, 133, 144, 149, 154, 159; free, 7, 29, 70, 95, 118, 126, 132, 135, 144, 153 complex phenomena See under phenomena Comte, A., 22, 30, 37– 40, 102, 105 Conjectures and Refutations (Popper), 163n3 (chap 2) consciousness, 12, 46, 55, 67 conservatism, 143 Constant, B., 28 Constitution of Liberty, The (Hayek), 1, 4, 29 – 30, 33, 72, 82, 116, 136, 142, 150, 156 constructivism, 24, 30, 38, 149 – 50 contract, 84; social, 31, 133 cooperation, 12, 83, 85 coordination, 8, 18, 84 – 85, 105, 108 – 9, 135, 141, 147 Cosmides, L., 83 cosmology, 80 Counter-Revolution of Science, The (Hayek), 3, 22, 37, 46, 163n1 (chap 2) cultivation, 65 – 67 cultural development See under development(s) cultural evolution See under evolution cultural group selection See under group selection culture(s), 70, 72 – 73, 79, 83, 85, 88, 93, 97, 104, 116, 119, 158, 160; advanced, 73, 121– 22; primitive, 107 custom(s), 67, 76, 86, 92, 99, 100, 104, 112, 114 –15, 137, 139 – 40 cybernetics, 53 Darwin, C., – 5, 7– 8, 25 – 29, 56 – 59, 61– 66, 87– 92, 113 –16, 118, 124 – 27, 129, 157 “Darwinians before Darwin,” 8, 26 Darwinism, 8, 25, 28, 57– 58, 88 – 89, 118 data, 4, 15, 43, 58 – 61, 66, 108, 113 Dawkins, R., 77, 86 “Degrees of Explanation” (Hayek), 57, 61 democracy, 31, 144 demographic, growth or increase, 8, 86, 116 – 18, 121, 124, 154 demographic explosion, Denis, A., 128 Descartes, R., 23 – 24, 31 design(s), – 7, 23, 27– 28, 31, 39, 43, 47, 75, 78 – 80, 127, 136, 138; conscious, 23, 42; human, 9, 24 – 25, 27, 129, 137; institutional, 92; intelligent, 76; rational or rationalist, 4, 9, 23, 33, 41, 78, 143, 148 – 50, 152 development(s), 1, – 8, 12, 15 –17, 22, 25 – 27, 30, 37, 39 – 40, 46, 50, 52, 56, 62, index 68 – 69, 73, 77, 82 – 83, 85, 88, 90– 91, 93, 96, 107– 8, 110, 113, 115, 120, 122 – 23, 136 – 37, 139 – 40, 147, 154, 156 – 57, 163n1 (chap 3); cultural, 6, 9, 67, 70, 73, 95, 129, 149, 158; economic, 1, 142; human, 39; industrial, 86; intellectual, 55, 62; moral, 8; ontogenetic, 50; scientific, 37, 48; social, 32, 70, 112, 158; spontaneous, 150 De Vlieghere, M., 116, 151 Dickens, C., 21 dictatorial government, 30 differentiation(s), 50, 63, 120 “Discourse on the Origins and Foundations of Inequality among Men” (Rousseau), 31 discovery, 14, 20, 58, 61, 72, 85, 102, 107, 116, 123, 128, 133, 142 dispositions, 7, 47, 53 – 54, 68, 137, 141 distribution of wealth See under wealth division of labor See under labor dual inheritance theory, 93 Dupuy, J.-P., 71, 73 – 75, 105 Durkheim, É., 104 – economic analysis See under analysis Economic Analysis of Law (Posner), 140 economic calculation(s) See under calculation(s) economic man, 16, 33 See also Homo economicus economic planning See under planning economics, 1– 4, 6, 11–12, 14, 16 – 21, 27, 30, 34 – 36, 43 – 44, 46 – 47, 57, 64, 66 – 67, 79, 87, 101, 105, 111, 119, 127, 139, 156 – 57; Austrian, 43; behavioral, 48; evolutionary, 89; monetary, 15, 18 – 19; nature of, 19; neoclassical, 18, 46; positive, 37; technical, 6, 18 – 20, 35; traditional, 18 economist(s), 1– 3, 5, 15, 17–18, 21– 22, 32, 34 – 36, 47, 60, 64, 80, 87– 89, 94, 100, 141– 42, 156 ecosystems, 159 Edelman, G M., 48 education, 6, 10–11, 60, 123, 130– 31 egalitarian drives, 159 egalitarian society, 107 Ege, R., 94, 97, 102, 135, 151 empirical evidence or proof, 65, 157 empirical science(s), 14, 17, 40, 43, 61 empiricism, 14 177 employment, 121, 132 engineering, 21, 41 See also piecemeal (social) engineering England, 22, 30, 108, 112, 126 Enlightenment, 6, 22, 28, 30, 113 entrepreneurs, 72 environmental concerns or issues, 9, 118, 122, 159 environmental constraints, 126 environmental factors, 101 environmental threats, 128 epistemology, 6, 14, 30, 58 equality, 130, 134 – 35 equilibrium, 16 –18, 46, 120 ethics, 11, 30, 122, 125; Aristotle’s or Aristotelian, 11, 106; evolutionary, 117, 124; tribal, 152 ethology, 87, 123 eugenics, 86, 88 evolution, – 4, 7, –11, 25 – 27, 31, 36, 47– 49, 55 – 59, 62 – 63, 65 – 66, 76 – 79, 80, 84 – 91, 97, 104 – 5, 107, 109, 114 –18, 125 – 28, 130– 31, 133 – 34, 137– 38, 143, 149, 151– 52, 154, 157– 58; biological, 70; convergent, 73; cosmic, 124; cultural, 4, – 8, 17, 21, 25 – 27, 29, 47, 51– 52, 64, 67, 69 – 71, 73, 75 – 76, 78 – 79, 83, 85 – 89, 92 – 95, 99 –100, 104, 106, 108, 112, 115 – 18, 125, 131, 134, 139 – 41, 143, 145 – 48, 150– 54, 156, 158; Darwinian, 63; genetic, 70, 93; human, 92; legal, 141; moral, 91; of rules, 87, 97; social, 5, 22, 32, 70, 89, 113; socioeconomic, 128; spontaneous, 116; technological, 75; theory of, 7, 12, 57, 61– 62, 66, 87, 140, 142 evolutionary theory See under theory exchange, 10, 64, 72, 84, 96, 107, 111 expectations, 7, 47, 53, 55, 74, 100, 122, 133, 137– 38 experience, 11–13, 49, 52 – 55, 57, 71– 72, 76 – 77, 91, 113 –14; human, 76; personal, 65; sensory, 49, 55; social, 18, 28 explanation(s), – 7, 17, 31, 39, 47, 56 – 61, 63, 87– 88, 90, 92 – 93, 96, 102, 107, 112 –13, 118, 141, 157; complex, 126; Darwin’s or Darwinian, 58, 90; evolutionary, 8, 118; group selection, 128; invisible-hand, 127; mechanistic, 142; naïve, 60; in/of principle, 7, 56, 61, 63; scientific, 61, 63, 77, 87, 157; theoretical, 60 externalities, 141 178 index Fabian inclinations, 16 Fabian Society, 36 Fabian tide, facts, 5, 11, 39, 43 – 44, 59, 61, 63, 66, 74, 76, 98, 136, 154; historical, 105; objective, 39, 42 – 43 “Facts of the Social Sciences, The” (Hayek), 44 faculties, 79, 113 –16 falsifiability, 14, 42, 62 Fatal Conceit, The (Hayek), 4, 77, 82, 104, 106, 120, 153, 157 fatalism, evolutionary, 8, 149 feedback, 53, 69; negative, 73; positive, 74 Ferguson, A., 26 – 27, 38, 108 Fermi, E., 56 Feuerbach, L., 11 fitness, 4, 58, 77, 127 See also survival of the fittest Foss, N J., 18 France, 22 freedom(s), 31, 40, 108 – 9, 131, 134 – 36, 154 – 55; to breed, 123; economic, 41; individual, 9, 35, 135; interdisciplinary, 20; loss of, 20 free market See under market(s) free riding, 141 See also behavior(s): free-riding free society See under society Freud, S., 85, 153 Freudians, 14 Friedman, M., 1, 3, 34 – 37, 46 – 47 “Friedrich the Great” (Postrel), functionalist analysis See under analysis gain, 26, 84, 112, 126; financial, 84; personal, 106 Gamble, A., 135, 139, 144, 147– 48, 153 Geistkreis, 20 gene-centered view, 4, 86 – 88, 128, 158 genetic change, 93 genetic code, 139 genetic equipment, 51 genetic evolution See under evolution genetic outfit, 58 genetic relatedness, 90, 114 –15 genetics, 57, 89 genetic selection See under selection genetic transmission, 70, 101 geological epoch, 159 geological record, 66 geology, 80 Germany, 22, 40, 108, 144, 147 Gestalt psychology, 48 God, 104 Gödel, K., 67 Goethe, J W von, 30 goods, 72, 107, 110–11, 126, 132, 134, 145; public, 145 Gould, S J., 75 – 76 governance, 143 government(s), 1, 9, 15, 18, 29 – 30, 60, 102, 108, 129, 143 – 46, 150– 51 Gray, J., 18, 30, 49, 99, 102, 109 Great Society, 5, 73, 83 – 84, 92, 94 – 95, 110, 119, 139, 144 – 46, 149, 152 – 53 Greece, 29, 136 Greek philosophy See under philosophy group selection, 4, 8, 16, 43, 56 – 57, 67, 77– 78, 81, 85 – 90, 94 – 96, 101, 104, 109 –10, 114, 117, 123, 125, 127– 28, 136 – 37, 139, 148, 158 – 59; cultural, 5, 8, 28, 43, 68, 77, 79, 82, 94, 100, 110, 117–18, 158, 163n1 (chap 3) grown law See under law(s) growth(s), – 9, 22, 25, 27, 30, 42, 58, 65, 84, 92, 106, 118, 121– 23, 126, 129 – 30, 158 – 59; demographic, 8, 116 –18, 121, 124, 154; economic, 126, 129, 131; population, 118 – 22; spontaneous, 25, 32, 102, 138, 143, 158 Grundsätze der Volkswirtschaftslehre (Principles of economics) (Menger), 12 Habermas, J., 85 habit(s), 20, 38, 67, 85, 91, 98, 113 –14, 125, 142 happiness, 84 – 85, 114, 146 Hegel, G W F., 40, 102 Henderson, M T., 1, 141– 42 heredity, 42, 88 – 89 historical narrative, 31, 79 historical school, 42 historicism, 40– 42, 57, 151 history, 8, 22, 40, 42, 50– 51, 59, 82, 93, 103, 106, 108 – 9, 112 –13, 120– 21, 123, 148 – 49, 153; of economic thought, 43, 159; of ideas, 26, 35; intellectual, 22; natural, 91, 157; philosophy of, 103; of political thought, 159; of science, 13 Hobbes, T., 83 Hodgson, G., 87, 101, 128 homeostasis, 50, 123 index Homo economicus, 3, 5, 30, 47, 74 See also economic man Homo sapiens, 93 Humboldt, W von, 30 Hume, D., 8, 26 – 27, 31, 87– 88, 108, 157 Huxley, J., 87, 89, 123 – 24 Huxley, T H., 124, 154 hypothetic-deductive approach or thesis, 61 idealism, 40 ignorance, 33, 72, 96, 98, 102, 133, 139, 151, 154 imitation, 7, 38, 67, 69 – 71, 73 – 75, 93, 96, 99 –101, 105, 110, 112 –14, 125 income, 107, 121; minimum, 9, 145 – 46 individual(s), 2, 4, 7– 9, 13, 16 –18, 23, 28, 31– 33, 35 – 36, 43 – 44, 49, 51– 52, 60, 63, 68, 74, 76 – 77, 79 – 81, 83 – 84, 90– 91, 95 –103, 105, 107, 109, 111–12, 114 –15, 118, 122, 125 – 27, 134, 136 – 38, 141, 143, 145 – 47, 149, 151, 154 individualism, 21– 23, 27– 28, 30, 32 – 33, 83, 136; methodological, 6, 43 – 44, 46, 100–101 individualist(s), 6, 8, 23, 26 – 29, 31– 32 inequality, 9, 31– 32, 118, 121, 130– 31, 134 inheritance of acquired characteristics/traits, 20, 28 – 29, 89, 127 injustice, 131 instinct(s), 14, 70, 76, 83, 85, 90, 92, 94, 108, 113 –15, 153, 156; prosocial, 153; social, 27, 52, 113 –15 institution(s), 12, 17, 24 – 27, 33, 72 – 73, 110, 115, 117, 128, 131, 136, 142, 147– 49, 151– 52; social, 12, 23, 26, 28, 30– 32, 41– 42, 105 intelligence, 33, 70, 103, 127, 149, 155 intelligibility, 67, 69 See also sympathy interdisciplinary research or investigations or studies, – 3, 18, 20 invisible hand, 27, 102, 118, 126 – 30 Japan, 147 Jevons, W S., 111 judge(s), 114, 137– 40, 150, 159 justice, 4, 52, 68, 108, 114, 129, 131– 35, 152 – 53, 157; social, 133, 135, 139, 153 Kammerer, P., 20 Kant, I., 30– 31, 49, 91, 99, 114, 135 Kerstenetzky, C L., 151 179 Keynes, J M., 1– 2, 18 –19, 21, 34, 36 – 37, 64, 88, 146 Khalil, E., 152 Kley, R., 112, 128, 135, 141, 148 knowledge, 2, 7, 10, 12 –13, 17, 20, 31, 36, 38 – 39, 41– 42, 45, 48 – 49, 51– 52, 54 – 55, 58 – 60, 64 – 65, 71– 74, 76, 85, 98 – 99, 105, 107, 111–12, 114, 119, 130, 134, 141– 42, 149 – 51, 154, 157; dispersed, 72, 91, 133; scientific, 49; source of, 15, 73; subjective, 42; tacit, 55, 71– 72 (see also physiognomy perception); technological, 25 Krugman, Paul, labor, 102, 111, 120; division of, 94, 105, 107, 119 – 20 Lagueux, M., 103 laissez-faire, 33, 129 Lamarck, Jean-Baptiste, 28, 89, 127 Lamarckism, 63, 70, 89 See also transformism land, 84, 96, 107, 109, 112, 119, 164n1 Laurent, J., 89 law(s), 12, 15, 25, 32, 35, 38 – 42, 58, 63, 89, 95, 97– 98, 103, 126 – 27, 133 – 42, 144; common, 137– 38; grown, 137, 140, 142; made, 137; natural, 61, 63, 136; philosophy of, 138, 141; private, 107; of progress, 22, 39, 103; of reason, 136; rule of, 9, 31, 134 – 35, 137; scientific, 14; theory of, 30; universal, 57; of use and disuse, 89, 127 Law, Legislation and Liberty (Hayek), 4, 33, 82, 99, 116, 136, 139, 147, 157 lawgiver(s), 137– 38, 140 lawmaking, 9, 136 – 37, 139 lawyer(s), 138, 142 learning, 7, 50– 51, 53, 67, 69 – 71, 73, 76 – 77, 93, 96, 99, 114 Légé, P., 30 legislation, 92, 131, 136, 139 – 41, 143 – 44 Lévi-Strauss, C., 97 liberalism, 3, 9, 26, 28 – 31, 136, 142, 148 – 49, 153 libertarian, 142 liberty, 30, 129, 131, 133 – 35, 150– 51; negative, 135, 151; positive, 135 See also Constitution of Liberty, The (Hayek) linguistics, 68, 80 Locke, J., 36, 108 logic, 11, 16 –18, 41, 58, 99, 127, 143, 151, 157; evolutionary, 64, 156 180 index Logic of Scientific Discovery, The (Popper), 14, 58 Logik der Forschung (Popper), 14 London School of Economics, 2, 13, 18, 41, 86, 156 Lorenz, K., 87, 123 Mach, E., 12 –14, 38, 49 macroeconomic planning, macroeconomics, 19, 60 Mafia, 128 magic, 60, 104, 110, 134 majority, 31, 70, 74, 144 Malthus, T., 9, 88, 118 – 20, 125, 127, 159 Mandeville, B., 8, 24 – 27, 87, 127, 157, 159 Marciano, A., 89 marginal utility, 111 market(s), 5, 8, 15 –17, 25, 27, 37, 72 – 75, 84 – 85, 94, 102, 118 –19, 121, 141, 145 – 47, 149, 152; competitive, 15, 35; failures, 141; forces, 95, 129, 132; free, 1, – 6, – 9, 15 –17, 19, 26, 28, 56, 71– 74, 78 – 79, 84, 89, 91– 95, 102 – 6, 108 – 9, 116, 121, 126, 128 – 29, 132 – 35, 140– 41, 143, 145 – 47, 149 – 53, 155 – 58, 160; modern, 74; morality, 8, 52, 85, 92, 95, 158; order, 4, 9, 80, 92, 94, 117–18, 124, 128, 131– 33, 135 – 37, 139, 145 – 46, 148, 153; rules of the, 7, 84 Marx, K., 36, 40, 103, 111, 121 Marxism, 14 mathematics, 3, 39, 60 maximization, 47, 99 –100, 127 Menger, C., 12, 43, 111 metaphysics, 13 method(s), – 4, 15, 21, 37, 42 – 43, 48, 64, 85, 111, 139 – 40, 145, 147, 159; “compositive,” 43; empirical, 21; inductive, 14; quantitative, 39; of science, 19, 38; scientific, 35, 56, 63; statistical, 36 methodological individualism See under individualism methodology, 3, 6, 8, 15, 19 – 20, 37, 46, 48, 57, 87 “Methodology of Positive Economics, The” (Friedman), 37, 46 – 47 microeconomics, 19 Middle Ages, 108, 136 Mill, J S., 28 – 31, 36, 102 Miller, D., 131, 148 – 49, 153 mind(s), – 4, – 7, 12, 20, 29, 37, 39 – 40, 42, 45 – 58, 67– 69, 72, 78, 87, 98, 113, 130, 133; human, 3, 38 – 39, 42, 44, 72, 83; naïve or primitive, 39, 50 minimum income See under income Mirowski, P., 35 – 36, 47 Mises, L von, 6, 15 –18, 20, 46, 79 model(s), 3, 19, 52 – 53, 58, 64, 71, 75, 96, 101, 110, 147 model building, 52 – 53, 63 modern evolutionary synthesis, 57, 89, 123 Monakow, C von, 12 monetary economics, 15, 18 –19 monetary policy See under policy Monetary Theory and the Trade Cycle (Hayek), 18 money(s), 12, 25, 64, 84, 96, 106, 149 – 50 Montesquieu, B de, 28 Mont Pèlerin Society, 35 – 36 Moore, G E., 117 moral belief(s) or code or sense, 26, 90– 91, 96 – 97, 113, 115 –16, 157 morality, 4, 7– 8, 26, 82 – 85, 90– 93, 105, 113 –15, 129, 157– 58; human, 6, 94, 116, 118; market, 8, 52, 85, 92, 95, 158; natural, 83; small group, 8, 85, 92, 98, 158 morals, 11, 23, 25 – 27, 31, 84, 97, 99, 104, 141 moral sciences, 42 multilevel selection theory, 127– 28 multiplication, 29, 124, 126, 130– 31 Myrdal, K G., 21 nationalism, 30 natural sciences, 6, 10, 18, 20– 21, 37, 39, 42, 57, 61 natural selection See under selection nature, 24, 57, 65 – 66, 113, 124, 130, 136; human, 32, 109, 160; moral, 115 Nazi Germany or regime, 29, 144 See also Third Reich neo-Darwinism, 89 neoliberal hegemony or political orientation, 35 – 36 neoliberal trope, 47 neural basis or structure, 68, 83 neural connections or impulses or linkages or pathways, 12, 49, 51– 52, 54, 57 Neurath, O., 38 neurobiology, 153 index “New Fable of the Bees, The” (Wilson), 127 Nobel Laureate or prize, 1– 3, 21, 48, 164n1 Nobel lecture, 21, 65 norm(s): cultural, 101; moral, 94, 149; prosocial, 106 objectivism, 42 omniscience, 157 omniscient economic players, 17 omniscient individual or persons, 16, 31, 133 ontogeny, 50 Open Society and Its Enemies, The (Popper), 41 order(s), 4, 25, 30– 31, 41, 43, 46, 48, 50, 52, 55 – 56, 63, 73, 78 – 81, 83, 85, 92, 96 – 99, 101, 103, 111, 127– 29, 132, 136 – 38, 140, 143 – 45, 147, 151– 54; complex, 27; economic, 91; extended, 83 – 85, 92, 94, 108 –10, 117, 122, 150– 51, 153; grown, 8, 80, 143; legal, 150; liberal, 136; market, 4, 9, 80, 92, 94, 117–18, 124, 128, 131– 33, 135 – 37, 139, 145 – 46, 148, 153; mental, 55; natural, 29; physical, 48; rational, 41; social, 7, 24, 29, 32, 47, 60, 65, 78, 80– 81, 128 – 29, 137, 151; spontaneous (see spontaneous order[s]) organic analogy, 138 organism(s), 26, 48, 50– 54, 60, 62, 64, 68 – 69, 73, 78, 80, 87, 89, 127 overpopulation, 9, 118, 123 – 24 paleontology, 57 Panglossian evolutionary theorist, 128 “Pantometria,” 44 path-breakers, 93, 95 – 96, 98, 101– path dependence, 75 pattern(s), 24, 52, 58 – 60, 62, 68 – 69, 76, 81, 94, 154; action, 54, 68 – 69; movement, 68; prediction(s) (see under prediction[s]) Paul, E., 136, 149 perception(s), 7, 12, 32, 47, 69 See also sensations phenomena, 24, 39 – 40, 43 – 44, 47, 53, 57– 61, 64, 74, 142; artificial, 24; complex, 4, 7, 19, 47– 48, 57– 61, 63 – 64, 68, 87, 157; economic, 60; highly organized, 58 – 60; historical, 41– 42; mental, 49 – 50; natural, 38; simple, 57; social, 7, 11, 23, 38 – 39, 43 – 45, 56, 88, 94, 105, 156 philosophy, 11, 13 –14, 18, 20, 23, 30– 31, 38 – 57, 159; Cartesian, 23; Comte’s, 181 39, 40; Descartes’s, 23; Greek, 24, 76; Hegel’s, 40; of history, 103; Hume’s, 26, 31; Kant’s, 99; legal, 18, 138, 141; Mach’s, 13; Popper’s or Popperian, 14, 47, 57, 151; positivist, 30, 37, 38, 40; of science, 6, 13; Spencer’s, 28 phylogeny, 50 physical sciences, 7, 37, 42 – 44, 58, 61, 69 physics, 7, 13, 15, 19, 40, 42, 57– 59, 61, 63; social, 39 Physiocrats, 23 physiognomy perception, 55 See also knowledge: tacit piecemeal (social) engineering, 41, 151 Pinker, S., 48 planning, 22, 139, 148; central or centralized, 4, 147; economic, 64, 157; macroeconomic, 7; rational, 21, 24, 40; social, – 5, 25, 151, 153 Plato, 40 pleasure, 84, 114 Polanyi, K., 102 Polanyi, M., 55, 71 policy: economic, 1, 21; monetary, 18 political economy, 27, 35, 105, 159 political organization, 12 political science, 78 political theory, 33, 35 politics, 3, 11, 18, 20, 36, 40, 57, 60, 131, 142; free market, 16, 102; laissez-faire, 129; socialist, 83 Popper, K., 7, 14 –15, 38, 40– 42, 47, 56 – 58, 61– 62, 89, 151– 52, 163n3 (chap 1), 163n3 (chap 2) popular sovereignty, 31 population(s), 70– 71, 86, 99 –100, 117, 119 – 24, 131, 153; density of, 107, 122; expansion or explosion, 120; growth, 118 – 22; homeostasis, 123; increase, 107, 120– 21, 123; Malthus’s theory of population, 88, 119, 125, 159; pressure, 29, 88, 124, 126; problem, 85 – 86; size (of ), 8, 86, 119 positivism, 3, 6, 14, 22, 36 – 38, 40, 44, 136 positivists, 13 –14 Posner, R., 139 – 41, 143, 159 Postema, G J., 101 Postrel, V., Poverty of Historicism, The (Popper), 40, 57 power struggle(s), 109, 112 182 index prediction(s), 4, 7, 47, 52 – 53, 56 – 57, 61– 65, 157; economic, 7; evolutionary, 64; historical, 41, 147; pattern, 7, 61, 64 – 65, 67, 87, 157; scientific, 64 prejudice(s), 19, 38, 104, 110, 149 preservation, 54, 79, 81, 84, 91, 100, 105, 134, 153 pressure(s), 102 – 4, 127; moral, 140; political, 36; population (see under population[s]); selective, 126, 128, 154 “Pretence of Knowledge, The,” 21, 141 price level, 64 prices, 15, 60, 64, 96, 107, 132 primitive culture See under culture(s) primitive man or minds or humans or societies or tribes, 32, 50, 83, 86, 111–13, 115 process(es), 1, 7, 16 –17, 25, 27, 29, 36, 39, 42, 49, 52 – 58, 60, 62, 65, 67– 70, 73 – 79, 83, 85, 87, 92, 94 – 95, 106, 109 –10, 112, 116 –18, 120– 22, 124 – 25, 133 – 34, 137– 38, 141, 143, 148, 155, 158; conservative, 142; economic, 147; ethical, 124; evolutionary or of evolution, 26 – 27, 32, 76, 87, 115, 125, 127– 28, 133, 141, 148, 150, 152, 155, 158; group-selection, 16; market, 16, 73; of natural selection, 17, 54; psychological, 93; rational, 67; rule-selection, 16; selection or of selection, 52, 65, 78, 88, 153, 158; social, 23, 32, 65 – 66, 77 production, 7, 15, 111, 120 productivity, 119 – 20, 132 products, 9, 24 – 25, 134, 137, 149, 152 profit(s), 92, 95, 111–12, 126 profitability, 84 profit-driven rules, profit making or seeking, 7, 100, 129, 159 progress, 6, – 9, 18, 25, 38 – 39, 95, 108, 116, 118, 121, 124, 130– 31, 140, 142, 155, 157– 58; economic, 119; human, 39; law(s) of, 22, 103; material, 32; scientific, 22, 39; social, 124 proletariat, 121 property, 84, 105 – 8, 111, 129, 135 – 36; private, 32, 84, 96, 106 – 8, 112, 123 prosocial behavior See under behavior(s) psychoanalysis, 14 psychology, – 4, 6, 12, 14, 18, 20, 30, 33, 42 – 44, 46, 48, 56 – 57, 77, 93, 115 public good(s), 145, 150 Pure Theory of Capital, The (Hayek), 18 rational choice See choice(s), rational rationalism, 6, 15 –16, 23, 25, 28, 30, 32, 36, 38, 76, 142 rationalist philosophers, 85 rationalist-utilitarian analysis or view, 6, 16 rationality, 17, 30, 70– 72, 95, 98 –100, 115, 150 Rawls, J., 133 Reagan, R., 1, 142 reason, individual, 7, 23, 76 reasoning, 5, 7, 8, 23, 49 – 50, 52, 58, 68, 74, 76 – 77, 91, 99 –100, 103, 114, 118, 125, 146, 152 – 53, 155, 158; economic, 139; evolutionary, 127 reclassification See under classification redistribution of wealth See under wealth reductionism, 3, 118 reform(s), 5, 8, 41, 78, 129, 143, 149 – 50 relativism, 149 religion, 104 – 6, 108, 112 reproduction, 8, 55, 62, 86, 89, 117–18, 123 – 24, 154, 158 resources, 60, 88, 101, 109, 111, 122 – 25, 159; allocation of, 15, 132; depletion of, or misuse of, 122; exploitation of or overexploitation of, 86, 122; limited, 122, 124, 127; material, 120; natural, 119; scarce, 135; scarcity of, 125 revolution, 31, 149; commercial, 107; French, 22, 41, 142; industrial, 159; marginal utility, 111; moral, 7; Reagan, 1, 142; Russian, 149; Thatcher, 1, 142 Richards, R J., 114 Richerson, P., 67, 70– 72, 74, 93, 110, 115 Riels, A., 12, 49 Road to Serfdom, The (Hayek), 1– 3, 22, 34 – 36, 109, 144, 146 – 47 Robbins, L., 2, 18 romantic conception of individuality, 30 Rome, 107– Rome, Club of, 122 Rothschild, E., 102, 129 Rousseau, J.-J., 31– 32, 36, 85, 133 rule of law, 9, 31, 134 – 35, 137 rules, 5, 17, 31, 33, 47, 52, 54, 55, 61, 67– 70, 76 – 77, 81, 83 – 84, 87– 88, 92, 93 –101, 103 – 4, 107, 129, 132, 135 – 44, 148, 150– 51, 153; abstract, 55, 67, 72, 92, 99, 102, 141, 151; of action, 54, 68 – 69, 72; of behavior, 52, 93, 95; of conduct, 77, 92, index 94, 96 – 98, 101, 104, 132, 136, 153; (free) market or of the market, 4, 7, 84 – 85, 93, 98, 104, 116, 135; moral, 85, 97, 105; selection of (see under selection); social, 98, 148; of social conduct, 4; system of, 7, 47, 54, 73, 77, 150 Ruse, M., 90 Ryle, G., 55, 71 Saint-Simon, H de, 22, 40 scarcity, 29, 110, 125 Schlick, M., 13 –14 scientism, 6, 22, 38, 41– 42, 44, 163n1 (chap 2) selection, 25, 44, 54, 62, 65, 67, 70– 71, 78, 84, 86 – 91, 99, 116, 118, 127– 28, 152 – 53, 157– 58; artificial, 7, 65 – 66; community, 8, 89 – 90; cultural group (see under group selection); Darwinian, 58, 88 – 89, 126; genetic, 87, 118; group (see group selection); individual, 4; kin, 114 –15; natural, 4, 7– 8, 17, 27– 29, 47, 54 – 55, 58, 61– 62, 65 – 67, 86, 88 – 93, 99, 101, 113, 118, 124 – 27, 141, 158; of rules/rule, 7, 16, 47, 52, 95, 99, 101, 118 self-interest, 105, 122, 125 – 27 sensations, 7, 12 –13, 47– 49, 51 Sensory Order, The (Hayek), – 7, 12, 33, 46 – 48, 50– 51, 53, 57, 66 – 68 Shearmur, J., 140 small group, 7– 8, 83 – 85, 92 – 93, 95 – 96, 98, 133 – 34, 145 – 46, 158 Smith, A., 1, 26 – 28, 32 – 33, 38, 42, 69, 88, 102, 108, 118 –19, 126, 129 – 30, 159 Sober, E., 90, 127 social criticism, 32 social development See under development(s) socialism, 2, 6, 9, 15 –17, 22 – 23, 25, 30, 40, 136, 143, 147– 49, 152 – 53, 159 social physics See under physics social sciences, – 4, – 8, 19, 21– 22, 25, 37, 39, 40– 44, 46 – 48, 56 – 57, 59 – 61, 64, 80, 87, 94 society, 5, 19, 22 – 24, 29 – 33, 35 – 36, 40– 44, 56 – 58, 72, 78, 81, 83, 90, 96 – 98, 103, 105 – 7, 109, 114, 117, 119, 124, 126 – 31, 133 – 36, 138, 140, 145, 147, 149, 151, 153, 157; free, 9, 37, 134, 145, 150; great (see Great Society); (free) market, 8, 79, 93 – 94, 102, 105 183 sociobiologist(s), 83, 105 sociobiology, 87, 118, 128, 158 sociology, 78, 104 solidarity, 5, 7, 52, 70, 82 – 85, 92, 95, 104 – 5, 107– 8, 112, 133, 153 Sophists, 24 Soviet Union, 147, 149 See also USSR species, 28, 49 – 52, 54, 58 – 59, 63, 68, 72, 76, 78, 82, 93, 110, 125, 127, 130– 31, 149, 154, 157 Spencer, H., 28 – 29, 117–18, 128 spontaneous order(s), 4, 9, 24 – 25, 38, 43, 48, 71, 79 – 80, 94, 97, 102, 106, 132, 134, 137– 39, 141, 143 – 44, 146 – 47, 152, 155, 158 statistics, 3, 37, 44, 60, 80 Steele, D R., 110, 112, 121 Stewart, D., 27 Stöhr, A., 12 structures, 18, 43, 50, 54, 58, 80– 81, 107, 149; complex, 50, 81; economic, 152; social, 25, 80, 143, 158; socioeconomic, 156 Studies in Philosophy, Politics and Economics (Hayek), 57 subjectivism, 42 Sugden, R., 101, 135 Sumner, W G., 29 superstition(s), 44, 114, 133 survival, 47, 50, 53, 58, 62, 77, 79, 90, 99, 117, 124, 136, 149 survival of the fittest, 28 – 29 sympathy, 27, 35, 69, 91, 113 –14 See also intelligibility system(s), 14, 50, 67, 73, 80, 113, 122 – 23, 130, 138, 143 – 44, 147, 152, 159, 163n2 (chap 2); individualist, 31; of law (enforcement), 97; legal, 137, 139; nervous, 49, 54 – 55; open or closed, 50, 58; of rules, 7, 47, 54, 73, 150; social, 33, 149, 152; of values, 117 tautology, 17, 58, 62 taxonomic scheme, 64 Taylor, H., 29 teleological twist or understanding or view, 8, 32, 67, 79 teleology, 78 “Tempo and Mode in Evolution” (Simpson), 56 Thatcher, M., 1, 142 184 index theory, – 5, 7– 9, 11–12, 14 –15, 18 –19, 23, 25 – 28, 30– 32, 37– 38, 40, 49 – 51, 53, 56 – 65, 69, 70, 72, 77, 79 – 83, 85 – 89, 91, 93, 98 –102, 105 – 6, 110–16, 119 – 20, 124 – 28, 152, 155 – 59; (of ) capital, 19, 34; of cultural evolution, 7, 17, 27, 51– 52, 64, 85, 87, 89, 95, 99, 145 – 46, 156; of cultural group selection, 5, 28, 43, 68, 77, 79, 82, 163n1 (chap 3); economic, 8, 11, 35, 99, 118, 125, 129; evolutionary or of evolution, 7, 9, 12, 15, 17, 24, 26, 33, 47, 50, 56 – 58, 61– 63, 118, 127, 140, 142, 146, 148, 153, 155, 157; (of ) group selection, 43, 77, 101, 109 –10, 137; of natural selection, 58, 62, 67, 88 – 90, 118, 125 – 26; political, 33, 35; social, 20, 24, 48, 112 Theory of Moral Sentiments, The (Smith), 129 Third Reich, 40 See also Nazi Germany or regime Tinbergen, N., 87 Tocqueville, A de, 28 Tooby, J., 83 tools, mathematical and statistical, 3, totalitarianism, 31, 41, 133 trade, 18, 84, 95, 106 – 8, 110–12, 126 tradition(s), – 6, 10, 24, 28, 30– 33, 51, 71, 76 – 78, 80, 92 – 94, 96, 100, 102, 104 – 5, 116 –17, 137, 139, 141– 42, 148, 150– 51; rationalist, 21, 28, 30, 32 “Tragedy of the Commons, The” (Hardin), 122 – 23 transformation, 6, 12, 18, 65 – 66, 102, 110, 144, 151 transformism, 127 tribe(s), 90– 91, 95, 109 –11, 115, 124 – 25, 127, 137, 152 Uebel, T., 41 unemployment, 109, 150 unintended consequences, 129, 151 United States, 2, 22, 34 – 35, 123, 142 University of Chicago, – 3, 34 – 35, 44, 56, 123 “Use of Knowledge in Society, The” (Hayek), USSR, 121 See also Soviet Union utilitarianism, 98 utility, 98, 111, 141 utility maximization, 99 –100, 111 utility-maximizing economic player(s), 3, 46 utopia, 153 utopian conception of evolution, 128 value(s), 42, 59 – 60, 71, 75, 78, 97, 99, 104 – 5, 109 –12, 117, 124, 126, 142, 145 – 46, 148 – 50, 152; ethical or moral, 117–18, 158; liberal, 9, 143; market, 75, 135; numerical, 44; theory of, 111 Vanberg, V., 5, 100, 128, 146, 151 variation(s), 27, 62, 65, 110, 125, 141, 157 Vaughn, K., 150 Vienna, 10–15, 20, 38 Vienna Circle, 13 –14, 38 Voigt, S., 141, 145, 147 Vorträge über Deszendenztheorie (Weismann), 11 wage(s), 132 Wales, J., Wallace, A R., 28, 90 Walras, L., 111 war(s), 2, 6, 11–15, 21, 36, 40, 91, 106, 108 – 9, 120, 142, 144 wealth, 4, 8, 110, 118 – 20, 122, 126, 129, 132, 135, 144, 152; distribution/redistribution of, 68, 124, 130– 34, 146, 152, 154 Wealth of Nations, The (Smith), 27, 102, 126 Weaver, W., 57 Weismann, A., 11 well-being, 8, 118, 131– 32, 145 Whig/ Whiggism, 28, 142 Whitman, D G., 101 Wiener, N., 53 Wieser, L., 15 Wilson, D S., 127– 28 Wilson, E O., 87, 128 Witt, U., 100–101, 128 working classes, 129 Wright, S., 56, 87 Wynne-Edwards, V C., 8, 81, 86 – 87, 123, 154, 158 – 59 zoology, 64 Zywicki, T J., 101 .. .Hayek and the Evolution of Capitalism Hayek and the Evolution of Capitalism NAOMI BECK The University of Chicago Press chicago a nd london The University of Chicago Press, Chicago 60637 The. .. understanding some basic truths about economics It was the 22 chapter one time of the growth of socialism and the misguided development of the social sciences, the time of the abuse and decline of. .. research, and survey the criticism they encountered In the third chapter, I offer a detailed exposition and evaluation of Hayek s theory of cultural evolution Hayek postulated that the shift