Free markets and Government

11 Aug

F.A. Hayek in The Road to Serfdom,

To create conditions in which competition will be as effective as possible, to supplement it where it cannot be made effective, to provide the services which, in the words of Adam Smith, “though they may be in the highest degree advantageous to a great society, are, however, of such a nature, that the profit could never repay the expense to any individual  or small number of individuals”, these tasks provide indeed a wide and unquestioned field for state activity. In no system that could be rationally defended would the state just do nothing. (emphasis added)

To summarize, free markets does not mean no government. This may seem like an obvious fact, but a lot of heartburn between interventionists and free marketers will be avoided if we keep the above in mind.

Advertisements

One Response to “Free markets and Government”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: