Hayek’s Liberalism and Its Critics

Abstract

This chapter argues that the case made by Chandran Kukathas and John Gray about the lack of foundations for Hayek’s liberalism can be answered by the critical rationalism of Karl Popper and his associates, especially William Warren Bartley III. The idea that laissez faire was driven by the state is refuted by reference to the distinction between rules and orders in government and public administration, while Karl Polanyi’s state-driven account of the industrial revolution is refuted by a suite of studies summarised by Gerard Radnitzky in his account of the ‘European Miracle,’ supported by Terence Kealey and others. Finally, Gray’s account of the erosion of traditional mores in the last century or two did not take account of influences other than the market order, notably changes in the intellectual climate charted by Deirdre McCloskey, the role of the ‘adversary’ and ‘counter’ cultures and the rise of the welfare state.