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Bill Easterly straightens out Justin Wolfers on Hayek’s influence and more importantly Hayek’s ideas.
Wolfers would also benefit from considering this short note by David Skarbek on Hayek’s influence on other Nobel Prize winners.
“What’s the single most important thing to learn from an economics course today? What I tried to leave my students with is the view that the invisible hand is more powerful than the [un]hidden hand. Things will happen in well-organized efforts without direction, controls, plans. That’s the consensus among economists. That’s the Hayek legacy” – Larry Summers
Daniel J. SmithSent Via Mobile Phone
“…American victories are achieved with the plowshare, Russia’s with the soldier’s sword. To achieve their aim, the former rely upon self-interest and allow free scope to the unguided strength and and common sense of individuals. The latter focuses the whole power of society upon a single man. The former deploy freedom as their main mode of action; the latter, slavish obedience.”
“Prices and profits are all that most producers need to be able to serve more effectively the needs of men they do not know. They are a tool for searching – just as…the telescope extends the range of vision…The disdain of profit is due to ignorance.”
- F.A. Hayek, Fatal Conceit, Page 104
“The morals of the market do lead us to benefit others, not by our intending to do so, but by making us act in a manner which, nonetheless, will have just that effect. The extended order circumvents individual ignorance in a way that good intentions alone cannot do – and thereby does make our efforts altruistic in their effects.”
- F.A. Hayek, Fatal Conceit, page 81