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‘Dictatorial Democracy,’ the Four Habsburg Estates, and ‘The Ethical Foundations of a Free Society’

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Book cover Hayek: A Collaborative Biography

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Abstract

Hayek ‘sometimes’ wished he ‘could return to psychology, I have so many ideas in that field.’ He must have reflected about the sociopathic, or aristocratic, trance in which he held his ‘secondhand dealers in opinions’—and how easily they were deceived. Hayek emphasized to his Mont Pelerin Society the ‘moral inheritance which is an explanation of the dominance of the western world, a moral inheritance which consists essentially in the belief in property, honesty and the family.’ He sought to preserve his own dominance through a rules-based ‘dictatorial democracy’ (a concept he may have plagiarized from Chairman Mao): it would take a ‘very long period’ for Mises’ ‘knout’ and ‘prison camp’ to ‘clean’ the United States. In addition to abandoning his family and stealing from tax-exempt educational charities to maintain his aristocratic lifestyle, Hayek—a tax-evading multi-millionaire—refused to pay his secretary (1977–1992), Charlotte Cubitt, because he ‘didn’t have the means.’

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Notes

  1. 1.

    Friedrich Hayek, interviewed by Thomas Hazlett, 12 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  2. 2.

    Friedrich Hayek, interviewed by Thomas Hazlett, 12 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  3. 3.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  4. 4.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  5. 5.

    http://www.margaretthatcher.org/document/114609

    Hayek Archives Box 27.6.

  6. 6.

    http://www.margaretthatcher.org/document/114609

    Hayek Archives Box 27.6.

  7. 7.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  8. 8.

    Friedrich Hayek, interviewed by Thomas Hazlett, 12 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  9. 9.

    He had noticed ‘very much nowadays, how selective my memory is increasingly becoming…Another phenomena of which I have recently became aware – I sometimes wish I could return to psychology, I have so many ideas in that field – how much memory depends on having remembered the thing before. And if you have never remembered the thing before, usually it is gone’ (cited by Caldwell 2007, 342).

  10. 10.

    Friedrich Hayek, interviewed by Jack High, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  11. 11.

    http://www.tandfonline.com/doi/pdf/10.1080/13501780903129306

  12. 12.

    http://www.margaretthatcher.org/document/117193

  13. 13.

    Friedrich Hayek, interviewed by Earlene Craver, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  14. 14.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  15. 15.

    Conversation with Kurt Leube, 12 August 2010.

  16. 16.

    http://www.economist.com/node/21541717

  17. 17.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  18. 18.

    http://mises.org/books/paine2.pdf

  19. 19.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  20. 20.

    http://edition.cnn.com/2017/03/23/politics/republicans-trump-health-care/

  21. 21.

    http://www.lfs.org/index.htm.

  22. 22.

    In September 2015, Martin Shkreli (1983–), the co-founder of the hedge fund MSMB Capital Management, obtained the manufacturing license for the antiparasitic drug Daraprim and raised its price by over 5000 %. Arrested by the FBI on charges of securities fraud, Shkreli was subpoenaed to appear before the Committee on Oversight and Government Reform of the US House of Representatives. After failing to quash the subpoena, he pleaded the Fifth Amendment, openly sneered during questioning, and then sent a Twitter message: ‘Hard to accept that these imbeciles represent the people in our government’ (Johnson 2015).

  23. 23.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  24. 24.

    Friedrich Hayek, interviewed by Axel Leijonhufvud, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  25. 25.

    Friedrich Hayek, interviewed by Robert Bork, 4 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  26. 26.

    Friedrich Hayek, interviewed by Axel Leijonhufvud, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  27. 27.

    Friedrich Hayek, interviewed by Thomas Hazlett, 12 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  28. 28.

    Friedrich Hayek, interviewed by Robert Bork, 4 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  29. 29.

    Friedrich Hayek, interviewed by Jack High, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  30. 30.

    Friedrich Hayek, interviewed by Robert Bork, 4 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  31. 31.

    Friedrich Hayek, interviewed by James Buchanan, 28 October 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  32. 32.

    ‘Perhaps it’s the degree of constant communication with the media (now one has to call it media; it used to be the press) which is much greater than you would expect of a people with the same general level of education. Compared with current influences, the basic stock of education is rather low. It’s the contrast between the two. The European peasant has less basic education but is not subject to the same stream of constant current information. Usually people who are subject to such a stream of current information have a fairly solid stock of basic information. But Americans have this flood of current information impacting upon comparatively little basic information.’

  33. 33.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  34. 34.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  35. 35.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  36. 36.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  37. 37.

    Friedrich Hayek, interviewed by Thomas Hazlett, 12 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  38. 38.

    Friedrich Hayek, interviewed by Earlene Craver, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  39. 39.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  40. 40.

    The head of Berlin SA, Wolf-Heinrich Graf von Helldorff, was the noble-born son of a landowner and (like Mises) a ‘Great’ War Lieutenant. With Job Wilhelm Georg Erdmann Erwin von Witzleben, Hermann Henning Karl Robert von Tresckow, Werner Karl von Haeften, and others, von Helldorff (like ‘von’ Mises) had second thoughts and participated in Claus von Stauffenberg’s 1944 20 July plot to kill Hitler (for which he was executed).

  41. 41.

    Friedrich Hayek, interviewed by James Buchanan, 28 October 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  42. 42.

    Friedrich Hayek, interviewed by Robert Bork, 4 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  43. 43.

    Friedrich Hayek, interviewed by James Buchanan, 28 October 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  44. 44.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  45. 45.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  46. 46.

    Friedrich Hayek, interviewed by Thomas Hazlett, 12 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  47. 47.

    Friedrich Hayek, interviewed by James Buchanan, 28 October 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  48. 48.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  49. 49.

    Friedrich Hayek, interviewed by James Buchanan, 28 October 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  50. 50.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  51. 51.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  52. 52.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  53. 53.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  54. 54.

    ‘A rather plain girl badly wants to become a saleswoman, a weekly boy who has set his heart on a job where his weakness handicaps him, as well as in general the apparently less able or less suitable not necessarily excluded in a competitive society; if they value the position sufficiently, they will frequently be able to get a start by financial sacrifice and will later make good through qualities which at first and not so obvious.’

  55. 55.

    Friedrich Hayek, interviewed by Axel Leijonhufvud, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  56. 56.

    But she was, apparently, unable to get her biography past publishers’ referees and so was obliged to self-published. It is in the public interest to know what role Austrians played in this attempt to suppress her knowledge.

  57. 57.

    Friedrich Hayek, interviewed by Leo Rosten, 15 November 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

  58. 58.

    Wieser (1983 [1926], 257, 363) described ‘The Modern Plutocracy’: ‘The Law of Small Numbers found in the economy a field of application of equally great effect as it once had in the victory of arms. While the multitude of the weak was pressed down, out of the bourgeois middle class there arose to dizzying heights the elite of the capitalists, joining the rulers of earlier times and exceeding them still in wealth and finally even in social influence. The great economic rulers had won under the slogan of liberty [emphasis added], which opened for them the road to unchecked activity. They demanded ever more impetuously the green light for themselves, but the uninhibited unfolding of their energies meant coercion for all the weak who stepped into their way. Could the liberals still talk about freedom?’ Wieser (1926, 354) had capitalized ‘The Slogan of Liberty’—‘Losung der Freiheit.’

  59. 59.

    Friedrich Hayek, interviewed by Robert Chitester, date unspecified, 1978 (Centre for Oral History Research, University of California, Los Angeles, http://oralhistory.library.ucla.edu/).

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Leeson, R. (2017). ‘Dictatorial Democracy,’ the Four Habsburg Estates, and ‘The Ethical Foundations of a Free Society’. In: Hayek: A Collaborative Biography. Archival Insights into the Evolution of Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-61714-5_10

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