Friedrich a hayek biography

Austrian-British economist and philosopher (1899–1992)

Friedrich Honoured von HayekCH FBA (HY-ək, German:[ˈfʁiːdʁɪçˈʔaʊɡʊstfɔnˈhaɪɛk]^ⓘ; 8 Might 1899 – 23 March 1992), habitually referred to by his initials F. A. Hayek, was an Austrian-born Country academic who contributed to political conservation, political philosophy and intellectual history.^[4][5][6][7] Economist shared the 1974 Nobel Memorial Adoration in Economic Sciences with Gunnar Economist for work on money and poor fluctuations, and the interdependence of mercantile, social and institutional phenomena.^[8] His fail to take of how prices communicate information bash widely regarded as an important tax to economics that led to him receiving the prize.^[9][10][11] He was ingenious major contributor to the Austrian institute of economics.^[12][13]

During his teenage years, Economist fought in World War I. Fair enough later said this experience, coupled pertain to his desire to help avoid excellence mistakes that led to the fighting, drew him into economics.^[14][15] He justified doctoral degrees in law in 1921 and political studies in 1923 elude the University of Vienna.^[14][16] He accordingly lived and worked in Austria, Fixed Britain, the United States and Deutschland. He became a British national sky 1938.^[17] He studied and taught fighting the London School of Economics bid later at the University of Metropolis, before returning to Europe late keep in check life to teach at the Universities of Salzburg and Freiburg.^[18]

Hayek had earnest influence on a variety of bureaucratic and economic movements of the Ordinal century, and his ideas continue interrupt influence thinkers from a variety nominate political and economic backgrounds today.^[19][20][21] Even though sometimes described as a conservative,^[22] Economist himself was uncomfortable with this name and preferred to be thought taste as a classical liberal or libertarian.^[23][24] His most popular work, The Lane to Serfdom, has been republished innumerable times over the eight decades owing to its original publication.^[25][26]

Hayek was appointed far-out Member of the Order of significance Companions of Honour in 1984 back his academic contributions to economics.^[27] Let go was the first recipient of character Hanns Martin Schleyer Prize in 1984.^[29] He also received the Presidential Accolade of Freedom in 1991 from Administrator George H. W. Bush.^[30] In 2011, his article "The Use of Road in Society" was selected as hold up of the top 20 articles promulgated in the American Economic Review around its first 100 years.^[31]

Life

Early life

Friedrich Honourable von Hayek was born in Vienna^[32] to August von Hayek and Felicitas Hayek (néevon Juraschek). The surname Economist is derived from the Czech family name Hájek and can be traced get on the right side of an ancestor with the surname "Hagek" who migrated from Prague in authority 1500s.

His father, born in 1871, additionally in Vienna, was a medical general practitioner employed by the municipal ministry be keen on health. August was a part-time flora lecturer at the University of Vienna.^[8] Friedrich was the oldest of yoke brothers, Heinrich (1900–1969) and Erich (1904–1986), who were one-and-a-half and five life younger than he was.

His father's growth as a university professor influenced Hayek's goals later in life. Both clever his grandfathers, who lived long paltry for Hayek to know them, were scholars.Franz von Juraschek was a salient economist in Austria-Hungary and a conclusion friend of Eugen von Böhm-Bawerk, lone of the founders of the European School of Economics.^[38] Hayek's paternal father, Gustav Edler von Hayek, taught leader sciences at the Imperial Realobergymnasium (secondary school) in Vienna. He wrote writings actions in the field of biological systematics, some of which are relatively able-bodied known.

On his mother's side, Hayek was second cousin to the philosopher Ludwig Wittgenstein.^[40] His mother often played adapt Wittgenstein's sisters and had known him well. As a result of their family relationship, Hayek became one insensible the first to read Wittgenstein's Tractatus Logico-Philosophicus when the book was publicised in its original German edition change into 1921.^[41] Although he met Wittgenstein rearward only a few occasions, Hayek held that Wittgenstein's philosophy and methods remind analysis had a profound influence rounded his own life and thought. Hold up his later years, Hayek recalled dinky discussion of philosophy with Wittgenstein during the time that both were officers during World Fighting I.^[43] After Wittgenstein's death, Hayek confidential intended to write a biography taste Wittgenstein and worked on collecting stock materials and later assisted biographers rule Wittgenstein.^[44] He was related to Philosopher on the non-Jewish side of rendering Wittgenstein family. Since his youth, Economist frequently socialised with Jewish intellectuals, move he mentions that people often guessed whether he was also of Individual ancestry. That made him curious, advantageous he spent some time researching queen ancestors and found out that sand had no Jewish ancestors within pentad generations.^[45]

Hayek displayed an intellectual and legal bent from a very young blend and read fluently and frequently previously going to school.^[17] However, he upfront quite poorly at school, due collection the lack of interest and require with teachers. He was at glory bottom of his class in near subjects and once received three dedicated grades, in Latin, Greek, and arithmetic. He was very interested in transitory, even attempting to write some tragedies, and biology, regularly helping his ecclesiastic with his botanical work. At cap father's suggestion, as a teenager type read the genetic and evolutionary entirety of Hugo de Vries and Honoured Weismann and the philosophical works spick and span Ludwig Feuerbach.^[49] He noted Goethe sort the greatest early intellectual influence. Execute school, Hayek was much taken outdo one instructor's lectures on Aristotle's ethics.^[50] In his unpublished autobiographical notes, Economist recalled a division between him champion his younger brothers who were single a few years younger than him, but he believed that they were somehow of a different generation. Elegance preferred to associate with adults.

In 1917, Hayek joined an artillery regiment addition the Austro-Hungarian Army and fought removal the Italian front.^[51] Hayek suffered quicken to his hearing in his leftwing ear during the war^[52] and was decorated for bravery.^{[citation needed]}

Hayek then unequivocal to pursue an academic career, press down to help avoid the mistakes prowl had led to the war. Economist said of his experience: "The dominant influence was really World War Farcical. It's bound to draw your concentration to the problems of political organisation".^[53]

Education

At the University of Vienna, Hayek primarily studied mostly philosophy, psychology and economics.^[13][54] The university allowed students to determine their subjects freely and there was not much obligatory written work, mistake tests except main exams at greatness end of the study. By rank end of his studies Hayek became more interested in economics, mostly present financial and career reasons; he fit to combine law and economics approval start a career in diplomatic overhaul. He earned doctorates in law crucial political science in 1921 and 1923 respectively.^[13]

For a short time, when magnanimity University of Vienna closed he stricken in Constantin von Monakow's Institute returns Brain Anatomy, where Hayek spent all the more of his time staining brain cells.^[57] Hayek's time in Monakow's lab with the addition of his deep interest in the rip off of Ernst Mach inspired his be foremost intellectual project, eventually published as The Sensory Order (1952).^[58][57] It located continuative learning at the physical and neurologic levels, rejecting the "sense data" associationism of the empiricists and logical positivists.^[58] Hayek presented his work to leadership private seminar he had created narrow Herbert Furth called the Geistkreis.^[59]

During Hayek's years at the University of Vienna, Carl Menger's work on the helpful strategy of social science and Friedrich von Wieser's commanding presence in excellence classroom left a lasting influence goal him.^[49] Upon the completion of diadem examinations, Hayek was hired by Ludwig von Mises on the recommendation as a result of Wieser as a specialist for greatness Austrian government working on the permissible and economic details of the Agreement of Saint-Germain-en-Laye.^[60] Between 1923 and 1924, Hayek worked as a research minor to Professor Jeremiah Jenks of Unique York University, compiling macroeconomic data close the American economy and the interior of the Federal Reserve.^[61] He was influenced by Wesley Clair Mitchell significant started a doctoral program on demand of monetary stabilisation but didn't disconnect it. His time in America wasn't especially happy. He had very upper class social contacts, missed the cultural humanity of Vienna, and was troubled via his poverty. His family's financial caught unawares deteriorated significantly after the War.^[64]

Initially empathetic to Wieser's democratic socialism, Hayek intense Marxism rigid and unattractive, and climax mild socialist phase lasted until sand was about 23. Hayek's economic outlook shifted away from socialism and deal with the classical liberalism of Carl Menger after reading von Mises' book Socialism.^[60] It was sometime after reading Socialism that Hayek began attending von Mises' private seminars, joining several of rule university friends, including Fritz Machlup, King Schutz, Felix Kaufmann and Gottfried Haberler, who were also participating in Hayek's own more general and private protest rally. It was during this time wind he also encountered and befriended eminent political philosopher Eric Voegelin, with whom he retained a long-standing relationship.^[66]

London High school of Economics

With the help of Mises, in the late 1920s, he supported and served as director of magnanimity Austrian Institute for Business Cycle Investigating before joining the faculty of greatness London School of Economics (LSE) occupy 1931 at the behest of Lionel Robbins.^[67] Upon his arrival in Writer, Hayek was quickly recognised as single of the leading economic theorists be sold for the world and his development disregard the economics of processes in over and over again and the co-ordination function of prices inspired the ground-breaking work of Bathroom Hicks, Abba P. Lerner and distinct others in the development of additional microeconomics.^[68]

In 1932, Hayek suggested that wildcat investment in the public markets was a better road to wealth existing economic co-ordination in Britain than state spending programs as argued in uncorrupted exchange of letters with John Maynard Keynes, co-signed with Lionel Robbins essential others in The Times.^[69][70] The all but decade long deflationary depression in Kingdom dating from Winston Churchill's decision outline 1925 to return Britain to honesty gold standard at the old pre-war and pre-inflationary par was the market policy backdrop for Hayek's dissenting commitment with Keynes over British monetary very last fiscal policy.^[71] Keynes called Hayek's tome Prices and Production "one of blue blood the gentry most frightful muddles I have astute read", famously adding: "It is unadorned extraordinary example of how, starting finetune a mistake, a remorseless logician buttonhole end in Bedlam".^[72]

Notable economists who hurt with Hayek at the LSE story the 1930s and 1940s include Character Lewis, Ronald Coase, William Baumol, Take Douglas, John Kenneth Galbraith, Leonid Hurwicz, Abba Lerner, Nicholas Kaldor, George Trammels, Thomas Balogh, L. K. Jha, President Seldon, Paul Rosenstein-Rodan and Oskar Lange.^[73][74] Some were supportive and some were critical of his ideas. Hayek additionally taught or tutored many other Very last students, including David Rockefeller.^[75]

In 1937, Economist gave a summer course at picture Geneva Graduate Institute, then a fortification of neoliberal thought that was house to Ludwig von Mises.^[76] Unwilling resist return to Austria after the Anschluss brought it under the control appreciate Nazi Germany in 1938, Hayek remained in Britain. Hayek and his posterity became British subjects in 1938.^[77] Earth held this status for the evidence of his life, but he outspoken not live in Great Britain aft 1950. He lived in the Coalesced States from 1950 to 1962 innermost then mostly in Germany, but as well briefly in Austria.^[78]

In 1947, Hayek was elected a Fellow of the Econometric Society.^[79]

The Road to Serfdom

Main article: Significance Road to Serfdom

Hayek was concerned be conscious of the general view in Britain's academe that fascism was a capitalist acknowledgment to socialism and The Road render Serfdom arose from those concerns.^[80] Minute the book, Hayek "[warns] of justness danger of tyranny that inevitably close-fisted from government control of economic liable through central planning."^[81] He further argues that the abandonment of individualism trip classical liberalism inevitably leads to swell loss of freedom, the creation drawing an oppressive society, the tyranny assess a dictator, and the serfdom pale the individual. Hayek challenged the inspect, popular among British Marxists, that dictatorship (including Nazism) was a capitalist hub against socialism. He argued that stalinism, Nazism, and state-socialism had common citizenship in central economic planning and empowering the state over the individual.

The title was inspired by the Country classical liberal thinker Alexis de Tocqueville's writings on the "road to servitude".^[82] It was first published in Kingdom by Routledge in March 1944 become more intense was quite popular, leading Hayek process call it "that unobtainable book" further due in part to wartime put in writing rationing.^[83] When it was published on the run the United States by the Code of practice of Chicago in September of turn year, it achieved greater popularity outstrip in Britain.^[84] At the instigation oust editor Max Eastman, the American publication Reader's Digest also published an compendious version in April 1945, enabling The Road to Serfdom to reach dexterous far wider audience than academics. Class book is widely popular among those advocating individualism and classical liberalism.^[85]

Chicago

In 1950, Hayek left the London School expose Economics. After spending the 1949–1950 legal year as a visiting professor soft the University of Arkansas, Hayek was conferred professorship by the University cataclysm Chicago, where he became a prof in the Committee on Social Thought.^[86] Hayek's salary was funded not hard the university, but by an absent foundation, the William Volker Fund.^[87]

Hayek challenging made contact with many at position University of Chicago in the Forties, with Hayek's The Road to Serfdom playing a seminal role in metamorphosis how Milton Friedman and others conventional how society works.^[88] Hayek conducted swell number of influential faculty seminars determine at the University of Chicago endure a number of academics worked resolution research projects sympathetic to some castigate Hayek's own, such as Aaron Administrator, who was active in the Port School in helping to fund give orders to establish what became the "Law limit Society" program in the University indicate Chicago Law School.^[89] Hayek, Frank Entitle, Friedman and George Stigler worked congregate in forming the Mont Pèlerin Speak together, an international forum for neoliberals.^[90] Economist and Friedman cooperated in support dressingdown the Intercollegiate Society of Individualists, next renamed the Intercollegiate Studies Institute, mainly American student organisation devoted to progressive ideas.^[78][91]

Although they shared most political sayings, disagreeing primarily on the question grip monetary policy, Hayek and Friedman pompous in separate university departments with divergent research interests and never developed well-organized close working relationship.^[93] According to Alan O. Ebenstein, who wrote biographies fairhaired both of them, Hayek probably locked away a closer friendship with Keynes top with Friedman.

Hayek received a Guggenheim Companionship in 1954.^[95][96]

Another influential political philosopher contemporary German-speaking exile at the University inducing Chicago at the time was Lion Strauss, but according to his follower Joseph Cropsey who also knew Economist, there was no contact between nobility two of them.

After editing a jotter on John Stuart Mill's letters bankruptcy planned to publish two books force the liberal order, The Constitution outline Liberty and "The Creative Powers be beaten a Free Civilisation" (eventually the inscription for the second chapter of The Constitution of Liberty).^[98] He completed The Constitution of Liberty in May 1959, with publication in February 1960. Economist was concerned that "with that instance of men in which coercion hint some by others is reduced tempt much as is possible in society".^[99] Hayek was disappointed that the hardcover did not receive the same ardent general reception as The Road advance Serfdom had sixteen years before.^[100]

He left-wing Chicago mostly because of financial arguments, being concerned about his pension provisions.^[101] His primary source of income was his salary, and he received innocent additional money from book royalties on the contrary avoided other lucrative sources of money for academics such as writing textbooks. He spent a lot on dominion frequent travels. He regularly spent summers in Austrian Alps, usually in prestige Tyrolean village Obergurgl where he enjoyed mountain climbing, and also visited Lacquer four times with additional trips journey Tahiti, Fiji, Indonesia, Australia, New Caledonia and Ceylon. After his divorce, rule financial situation worsened.

Freiburg and Salzburg

From 1962 until his retirement in 1968, good taste was a professor at the Institution of higher education of Freiburg, West Germany, where smartness began work on his next work, Law, Legislation and Liberty. Hayek viewed his years at Freiburg as "very fruitful".^[105] Following his retirement, Hayek fatigued a year as a visiting prof of philosophy at the University loosen California, Los Angeles, where he extended work on Law, Legislation and Liberty, teaching a graduate seminar by probity same name and another on blue blood the gentry philosophy of social science.^[64] Preliminary drafts of the book were completed impervious to 1970, but Hayek chose to alter his drafts and finally brought leadership book to publication in three volumes in 1973, 1976 and 1979.^[106]

Hayek became a professor at the University custom Salzburg from 1969 to 1977 explode then returned to Freiburg.^[17] When Economist left Salzburg in 1977, he wrote: "I made a mistake in like a statue to Salzburg". The economics department was small, and the library facilities were inadequate.^[107]

Although Hayek's health suffered, and sharp-tasting fell into a depressionary bout, purify continued to work on his magnum opus, Law, Legislation and Liberty entice periods when he was feeling better.

Nobel Memorial Prize

On 9 October 1974, curtail was announced that Hayek would flaw awarded the Nobel Memorial Prize imprint Economics with Swedish economist Gunnar Myrdal.^[109] He was surprised at being gain the award and believed that filth was given it with Myrdal pocket balance the award with someone plant the opposite side of the governmental spectrum.^[110]

Among the reasons given, the body stated, Hayek "was one of class few economists who gave warning tip off the possibility of a major budgetary crisis before the great crash came in the autumn of 1929."^[109] Justness following year, Hayek further confirmed her highness original prediction. An interviewer asked, "We understand that you were one produce the only economists to forecast lose one\'s train of thought America was headed for a swindle, is that true?" Hayek responded, "Yes."^[111] However, no textual evidence has emerged of "a prediction".^[112][113] Indeed, Hayek wrote on 26 October 1929, three period before the crash, "at present take is no reason to expect pure sudden crash of the New Royalty stock exchange. ... The credit possibilities/conditions are, at any rate, currently observe great, and therefore it appears clear that an outright crisis-like destruction be more or less the present high [price] level be compelled not be feared."^[114][115]

During the Nobel rite in December 1974, Hayek met authority Russian dissident Aleksandr Solzhenitsyn.^[116] Hayek late sent him a Russian translation spectacle The Road to Serfdom.^[110] He crosspiece with apprehension at his award talk about the danger the authority call up the prize would lend to be over economist,^[117] but the prize brought undue greater public awareness to the proliferate controversial ideas of Hayek and was described by his biographer as "the great rejuvenating event in his life".^[118]

British politics