The point is raised in this chapter that if the State becomes the sole employer of the people, he would possess the unlimited power to coerce the individual. My question is if the state is made up by the people, would be their incentive to exploit themselves? It’s not that I don’t agree with Hayek, it is equally beneficial to all involved to have competition not only in the employee pool, but the possible employer pool. Competition is good for the advancement of society, although we might not like the aspect of completion because it means that we have to work harder.
My favorite quote of this book yet is on page 125, “though the limitations of the market provide a legitimate argument for some kinds of government action, they certainly do not justify the argument that only the state should be able to provide such services” I like this quote for two reasons. 1.) THE MARKET IS NOT INFALLIBLE. The question was raised recently why the market produces things like the dog snuggie, while illnesses like Polio and Leprosy still exist in third world countries… according to the free market at this point in time we value superficial blanket coats for our dogs, more than having a healthy global community, maybe this is not a free market failure, or maybe it is… feel free to shred this argument apart if you find fault in it. And 2.) Hayek poses the concept of the government and private sector competing against each other, which I think is a wonderful thing.