hayek friedrich
Friedrich August von Hayek
Vocabulary
| award | share (2) | Nobel Prize |
| serf | so-called | complexity |
| policy | oppose | therefore |
| deficit | attempt | compensation |
| free (2) | role (2) | unemployment |
Friedrich August von Hayek (1899-1992) was an Austrian-born economist who won the 1974 Nobel Prize in economic science. He shared the award with Gunnar Myrdal, a Swedish economist.
Hayek was the leading speaker for the so-called Austrian School of Economics, which favoured a free-market economy. He believed no one would ever be able to understand all the complexities of economics.
Therefore, he opposed government attempts to manage a nation’s economic policies. For example, he opposed deficit spending — that is, a government’s spending more than it received in taxes — and unemployment compensation.
Hayek wrote several books on the role of money in a nation’s economy. They include Prices and Production (1931), The Pure Theory of Capital (1941), and The Road to Serfdom (1944).
Hayek was born in Vienna, Austria, in 1899. He became a British citizen in 1938. Hayek taught at the University of London, the University of Chicago, The University of Freiburg in Germany and Salzburg University in Austria.
Questions
1. Friedrich August von Hayek studied, taught and worked in institutions only in Austria. True or false?
2. What does the Austrian School of Economics believe in? What do they promote?
3. According to Hayek, what should be the role of the government in the economy?
4. Is it good or bad for the government to consistently borrow money?
5. He was very sympathetic to workers. Yes, no, yes and no, perhaps, maybe, it depends?
6. What do you think Hayek’s book The Road to Serfdom was about?
A. Do you agree with Hayek’s ideas? I completely agree, I generally agree, Yes and no, in the middle, I somewhat disagree, I totally disagree.
B. Who are some prominent economists in your country? What are their beliefs and philosophies?
C. Describe your government in terms of their economic policies.
D. Are there problems, difficulties or challenges with the economy?
E. What are some solutions to economic woes? How can the economy be enhanced?
F. What will happen in the future?
