Hayek - Individualism and Collectivism, part1

Monrovians - Unite!  Hayek's third chapter is one of definition - making sure that we are all thinking the same thing when we use certain words.

Socialism may mean, and is often used to describe, merely the ideals of social justice, greater equality, and security, which are the aims of socialism.  But it means also the particular method by which most socialists hope to attain these ends and which many competent people regard as the only method by which they can be fully and quickly attained.  In this sense socialism means the elimination of private enterprise, of private ownership of the means of production, and the creation of a system of "planned economy" in which the entrepreneur working for profit is replaced by the central planning body.

Hayek makes the brilliant point that "central planning" is necessary to redistribute income so that all have equal incomes, but is also the same device that can be used to politically redistribute income in ways that we would all consider unjust - to favor a particular group over others.  Hayek then states that it may be unfair to use socialism as a term to describe central planning that seeks other ends, and uses the term "collectivism" to describe them.  Socialism is, then, a sub-species of collectivism.  Hayek points out that the objections of the believers in individual freedom have the same objections to all forms of collectivism, and the critique of collectivism applies also to socialism.

Put another way, state control and central planning can be used for good or for evil.  There is nothing inherent in central planning that requires that it be done well or poorly, for good aims or for corrupt ones.  It merely gives the central planner all power and authority, in the hope (expectation?) that the planners will use that power justly and wisely.  This is a crucial insight to understanding the critique of collectivism by the idealist who wants only equality, social justice, etc.