There is a great story of Margaret Thatcher throwing this book down on the table at an economic policy meeting and saying "This is what we believe". Great chapters on how democracy can't exist with coercion; how the "idle rich", though oft bally-hooed are really the driving force behind the great museums, art, and sports that the general public enjoy today.

Hayek undertook a monumental task when he set out to write the The Constitution of Liberty. Hayek aimed at finding the proper limits between public and private life. How far should the authority of the state extend? What areas of life should be beyond the reach of the government? Hayek is stating his version of the general principles of classical liberalism, based on utilitarian ethics. Since his arguments are utilitarian, this book has economic overtones.

Hayek's purpose in restating the principles of liberal society is to defend these principles against the opposing intellectual movement of collectivism. Western Civilization succeeded largely because of its individualism. Collectivism is undermining the basis of modern civilization in the West. Individualism is important because we each lack the knowledge needed to rationally direct the affairs of others. Some people believe that they can plan out society because they are `experts' or because they are educated. Hayek saw that nobody can posses the knowledge needed to design a rational order for society. As Hayek put it, "it is largely because civilization enables us constantly to profit from knowledge which we individually do not posses that men can pursue their individual ends more successfully than they could alone".

In writing this book, Hayek shifted his attention away from full-blown socialism and towards the modern welfare state. Hayek seems to have felt that the case for socialism had been sufficiently weakened so as to allow him to critique welfare states. Hayek accepted some types of government intervention that libertarians typically oppose. Rather than opposing each program point by point, Hayek sought out some `lynchpin issues' that would limit state growth. Hayek argued strenuously against state control of the money supply, and suggested ways of limiting taxation. Hayek's libertarian critics typically cringe at some of his concessions, but we would all be in a much better position now if his constitution had been adopted.

The Constitution of Liberty is more than well reasoned, it is subtle and profound. This book reveals Hayek's deep understanding of economics, politics, and history. Reading the COL is no small undertaking, but it is a highly useful undertaking for any serious student of political economy.

Hayek undertook a monumental task when he set out to write the The Constitution of Liberty. Hayek aimed at finding the proper limits between public and private life. How far should the authority of the state extend? What areas of life should be beyond the reach of the government? Hayek is stating his version of the general principles of classical liberalism, based on utilitarian ethics. Since his arguments are utilitarian, this book has economic overtones.

Hayek's purpose in restating the principles of liberal society is to defend these principles against the opposing intellectual movement of collectivism. Western Civilization succeeded largely because of its individualism. Collectivism is undermining the basis of modern civilization in the West. Individualism is important because we each lack the knowledge needed to rationally direct the affairs of others. Some people believe that they can plan out society because they are `experts' or because they are educated. Hayek saw that nobody can posses the knowledge needed to design a rational order for society. As Hayek put it, "it is largely because civilization enables us constantly to profit from knowledge which we individually do not posses that men can pursue their individual ends more successfully than they could alone".

In writing this book, Hayek shifted his attention away from full-blown socialism and towards the modern welfare state. Hayek seems to have felt that the case for socialism had been sufficiently weakened so as to allow him to critique welfare states. Hayek accepted some types of government intervention that libertarians typically oppose. Rather than opposing each program point by point, Hayek sought out some `lynchpin issues' that would limit state growth. Hayek proposed limiting the direct marginal income tax rate to 25%. Hayek also argued strenuously against state control of the money supply. Hayek's libertarian critics typically cringe at some of his concessions, but we would all be in a much better position now if his constitution had been adopted.

The Constitution of Liberty is more than well reasoned, it is subtle and profound. This book reveals Hayek's deep understanding of economics, politics, and history. Reading the COL is no small undertaking, but it is a highly useful undertaking for any serious student of political economy.