Throughout the last few decades of his life, Hayek was busy remonstrating against the mythical authority of Keynesian ‘collectivist’ thought, this remained his abiding obsession after being confirmed by the Laureate. But one can find identical musings throughout his earlier work in the 1930’s; his strain of having to develop a Thomist approach to counter the prevailing neo-Kantianism that dominated academic life for centuries prior to the effective mining done by Catholic phenomenologists assaulting the positivist drive harnessing the social sciences, effectively masking a theoretical, humanist foundation.
By the early 1980’s, Hayek’s Thomism would yield a counter to the slavish authority asserted in non-Euclidean math, the language of the collective; Hayek grounded his oeuvre in Thomism, his extended order was nothing less than a view of ordered liberty. For von Mises and Hayek and what would become the Austrian School, the necessity to expose the moral framework underwriting Adam Smith’s invisible hand was formidable.
We need it today as we grapple to fix destructively contorted capital markets; to fix American finance we must begin with first principals: the supremacy of civil society as a repository against tyrannical ambition.
Why is this pertinent?
The Federal Reserve along with central banks throughout the globe have embraced coercive measures to secure the confiscation of capital; the sine qua non of a natural right. What the Fed has done is acquiesce to the wiles of a dominant political class. In so doing, the Fed continues its performance on behalf of a political client. It is failing. Miserably.
The distorting role of accommodative policy must be brought to an end. This may not happen anytime soon. In light of the spade work done in defense of the moral superiority of capitalism, we’re left with the mythical authority of a flailing institution overwrought from unchecked idealism.
This will not. End well.