The Slippery Slope of Socialism

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Socialism to Fascism

In The Road to Serfdom, Friedrich Hayek discusses the dangers of socialism, arguing that increasing government control over the economy inevitably leads to fascism and Marxism. In relation to Germany, Hayek writes “the rise of fascism and Marxism was not a reaction against the socialist trends of the preceding period but a necessary outcome of those tendencies.” According to our definition from Dr. Powell’s lecture, socialism includes taking the major factors of production and replacing them with some form of collective ownership and control. Hayek explains that this form of collective ownership and control will eventually require one person to be given power, because the large group of people involved in planning is unable to agree. As a result, power is heightened and concentrated on one person. Hayek writes that “when economic power is centralized as an instrument of political power it creates a degree of dependence scarcely distinguishable from slavery.” Central planning takes away individual freedom, causing the people to be fully dependent on the state. When the means of production are under one hand, they can easily be used to control the whole life of the country’s residents.

Democratic Socialism

At the time of writing, Hayek believed the Americans and the Brits were beginning to desire a central direction of all economic activity. There was an idea of a utopia where socialism and individual freedom could be combined; however, democracy stands in an irreconcilable conflict with socialism. Hayek includes a quote from the great political thinker de Tocqueville, who points out that “while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.” Democracy and socialism are opposites, and they cannot be combined. To draw up an economic plan to direct the resources of an entire democratic nation would satisfy nobody even if it could be accomplished. If central planning is to happen on a large scale, the need for an economic dictator is inevitable. Hayek points out the irony of trusting one person to enforce a central plan (as an instrument of coercion), while not expecting that person to also abuse his power to ensure his position is confirmed by a popular vote. Democratic socialism is not possible, and it is easy to see the transition that can happen from socialism to fascism.

Rule of Power

In the past, socialism has been a stepping stone to fascism. Hayek uses the example of the German and Italian socialist parties who refused to take over the responsibilities of government. These parties were inhibited by their democratic ideals and “they were not unwilling wholeheartedly to employ the methods to which they had pointed the way.” In the transition to a dictator, coercion was more heavily relied on. All rules became based on the principle that the end justifies the means. Under central planning, the government will be partial, deliberately discriminating between the needs of different people. This means that the planning authority cannot and will not restrict itself in advance to rules that prevent the partiality it wants.

Rule of Law

In contrast, the Rule of Law distinguishes countries that are free. The government still has coercive powers in given circumstances, but there are fixed rules that the government is tied too. One can use this as a basis to plan individual affairs and have certainty in this plan. The individual has the ability to plan, rather than floundering in the uncertainty of the state’s plan. The presence of the Rule of Law can point to the level of individual freedom present in a country.

Application Today

Hayek’s argument that socialism will lead to fascism is generalized in regard to socialist policies. It could be argued that we see some socialist programs in countries today, but these countries are not currently considered fascist. These countries may continue as they are, or there may be intervention to remove the social programs that are currently present. However, it is also possible that fascism could result eventually. From the examples of Germany and Italy, we know that socialist policies can undermine individual freedom and pave the way for a dictatorship. While we have some socialist programs in the United States (including Medicare and Social Security), positive views of socialism as a whole have been declining in recent years. About 80 years later, the United States is still a democracy operating under capitalism. However, Hayek’s concerns about the Americans and Brits can still be seen as relevant, and it is crucial that citizens remain educated on political issues. We need to understand socialism and what it entails, as well as the effects socialism policies could have on the United States.