Friedrich Hayek (1899–1992) was a philosopher and economist born in Austria-Hungary at the turn of the nineteenth century. Part of the esteemed Austrian School, Hayek became well-known around the world for his defense and encouragement of classical liberalism. In 1974, Hayek was awarded a shared Nobel Memorial Prize in Economic Sciences for his work in fiscal theory and economic fluctuations, examining how social and institutional variables impact markets.
After being raised by a family of scholars and professors in his early years, Hayek became interested in philosophy, academia, and the arts. Despite his interests however, any career ambitions would have to be put on hold when Hayek joined the Austro-Hungarian Army in 1917 to fight in the final year of World War I.
Heavily discouraged by the destruction and death he witnessed living through the war and Spanish Flu, Hayek returned to his native country to pursue an academic career, vowing to improve the political and economic processes that he believed helped contribute to the world’s recent tragedies.
Hayek enrolled in the University of Vienna where he studied philosophy and economics. By the end of his schooling, Hayek had obtained two law doctorate’s, was taught by and worked for Ludwig Von Mises, and was heavily influenced by the works of Carl Menger.
While living in London in the early 1930s, Hayek exchanged letters in a newspaper column with John Maynard Keynes, arguing that incentivizing private investment was a much better answer on the road to economic recovery than government spending programs.
In the early 1940s, Hayek wrote what is now his most well known book, The Road to Serfdom, in which he analyzed the relationship between economic and political freedom. He goes on to warn those reading that a new despotism could come about in the name of government liberation for the greater good of society. Hayek also advocated for free markets, arguing any step towards government regulation was just the beginning on the journey towards sacrificing individual freedoms in exchange for tyrannical government control.
Throughout the 1950s, Hayek moved to America where he was a visiting professor at the University of Arkansas and the University of Chicago. There, he led several seminars on philosophy and economics, amongst other topics. On several occasions, Hayek worked closely with Milton Friedman to form multiple academic institutions advocating for social liberty and free markets. He also published his second book entitled, The Constitution of Liberty.
Until being awarded the Nobel Memorial Prize in 1974, Hayek jumped between Germany, Austria, and California, continuing to teach and write despite suffering from various health issues and depression. Although he was surprised to receive the Nobel Award, Hayek used the opportunity to rejuvenate his career and promote his libertarian ideas to the masses.
During his remaining years, Hayek remained a prominent figure in the conservative free-markets movement, receiving recognition from multiple institutions, and became an outspoken figure in British politics. He had several meetings with Margaret Thatcher to discuss economic policy and was also one of twelve Nobel awardees to speak with Pope John Paul II to discuss the relationship between Catholicism and the sciences in the modern world.
Hayek’s work ranges but includes topics such as the market’s business cycle, the failures of centralized economic planning, liberties being restrained for the sake of collectivism, political philosophy that promotes free societies and justice under the rule of law, and the importance of choice theory as a part of an individual’s decision making.
Hayek died in March 1992 in Freiburg, Germany and is buried near Vienna, Austria.
Sources:
Wikipedia entry
Encyclopedia Britannica
Mises Institute
The Nobel Prize
Foundation for Economic Education