Law, Legislation and Liberty

Law, Legislation and Liberty

A New Statement of the Liberal Principles of Justice and Political Economy

Friedrich von Hayek (2013)

Abstract: There are different views on how societies are formed and changed. One perspective believes that institutions should be intentionally designed, while another claims that societies evolve organically through shared practices. Rationalism emphasizes logical thinking but can dismiss valuable traditions. Effective human actions often rely on unrecognized rules rather than complete knowledge of facts. Science isn't always enough for complex problems, and understanding societal order involves recognizing both created and evolved structures. Ultimately, justice and freedom require fair guiding principles to maintain societal order amidst individual freedoms and evolving customs.

Book Summary

Chapter Summaries:

Volume 1 RULES AND ORDER

1 REASON AND EVOLUTION

CONSTRUCTION AND EVOLUTION

THE TENETS OF CARTESIAN RATIONALISM

THE PERMANENT LIMITATIONS OF OUR FACTUAL KNOWLEDGE

FACTUAL KNOWLEDGE AND SCIENCE

THE CONCURRENT EVOLUTION OF MIND AND SOCIETY: THE ROLE OF RULES

THE FALSE DICHOTOMY OF ‘NATURAL’ AND ‘ARTIFICIAL’

THE RISE OF THE EVOLUTIONARY APPROACH

THE PERSISTENCE OF CONSTRUCTIVISM IN CURRENT THOUGHT

OUR ANTHROPOMORPHIC LANGUAGE

REASON AND ABSTRACTION

WHY THE EXTREME FORMS OF CONSTRUCTIVIST RATIONALISM REGULARLY LEAD TO A REVOLT AGAINST REASON

2 COSMOS AND TAXIS

THE CONCEPT OF ORDER

THE TWO SOURCES OF ORDER

THE DISTINGUISHING PROPERTIES OF SPONTANEOUS ORDERS

SPONTANEOUS ORDERS IN NATURE

IN SOCIETY, RELIANCE ON SPONTANEOUS ORDER BOTH EXTENDS AND LIMITS OUR POWERS OF CONTROL

SPONTANEOUS ORDERS RESULT FROM THEIR ELEMENTS OBEYING CERTAIN RULES OF CONDUCT

THE SPONTANEOUS ORDER OF SOCIETY IS MADE UP OF INDIVIDUALS AND ORGANIZATIONS

THE RULES OF SPONTANEOUS ORDERS AND THE RULES OF ORGANIZATION

THE TERMS ‘ORGANISM’ AND ‘ORGANIZATION’

3 PRINCIPLES AND EXPEDIENCY

INDIVIDUAL AIMS AND COLLECTIVE BENEFITS

FREEDOM CAN BE PRESERVED ONLY BY FOLLOWING PRINCIPLES AND IS DESTROYED BY FOLLOWING EXPEDIENCY

THE ‘NECESSITIES’ OF POLICY ARE GENERALLY THE CONSEQUENCES OF EARLIER MEASURES

THE DANGER OF ATTACHING GREATER IMPORTANCE TO THE PREDICTABLE RATHER THAN TO THE MERELY POSSIBLE CONSEQUENCES OF OUR ACTIONS

SPURIOUS REALISM AND THE REQUIRED COURAGE TO CONSIDER UTOPIA

THE ROLE OF THE LAWYER IN POLITICAL EVOLUTION

THE MODERN DEVELOPMENT OF LAW HAS BEEN GUIDED LARGELY BY FALSE ECONOMICS

4 THE CHANGING CONCEPT OF LAW

LAW IS OLDER THAN LEGISLATION

THE LESSONS OF ETHOLOGY AND CULTURAL ANTHROPOLOGY

THE PROCESS OF ARTICULATION OF PRACTICES

FACTUAL AND NORMATIVE RULES

EARLY LAW

THE CLASSICAL AND THE MEDIEVAL TRADITION

THE DISTINCTIVE ATTRIBUTES OF LAW ARISING FROM CUSTOM AND PRECEDENT

WHY GROWN LAW REQUIRES CORRECTION BY LEGISLATION

THE ORIGIN OF LEGISLATIVE BODIES

ALLEGIANCE AND SOVEREIGNTY

5 NOMOS: THE LAW OF LIBERTY

THE FUNCTIONS OF THE JUDGE

HOW THE TASK OF THE JUDGE DIFFERS FROM THAT OF THE HEAD OF AN ORGANIZATION

THE AIM OF JURISDICTION IS THE MAINTENANCE OF AN ONGOING ORDER OF ACTIONS

‘ACTIONS TOWARDS OTHERS’ AND THE PROTECTION OF EXPECTATIONS

IN A DYNAMIC ORDER OF ACTIONS ONLY SOME EXPECTATIONS CAN BE PROTECTED

THE MAXIMAL COINCIDENCE OF EXPECTATIONS IS ACHIEVED BY THE DELIMITATION OF PROTECTED DOMAINS

THE GENERAL PROBLEM OF THE EFFECTS OF VALUES ON FACTS

THE ‘PURPOSE’ OF LAW

THE ARTICULATION OF THE LAW AND THE PREDICTABILITY OF JUDICIAL DECISIONS

THE FUNCTION OF THE JUDGE IS CONFINED TO A SPONTANEOUS ORDER

CONCLUSIONS

6 THESIS: THE LAW OF LEGISLATION

LEGISLATION ORIGINATES FROM THE NECESSITY OF ESTABLISHING RULES OF ORGANIZATION

LAW AND STATUTE: THE ENFORCEMENT OF LAW AND THE EXECUTION OF COMMANDS

LEGISLATION AND THE THEORY OF THE SEPARATION OF POWERS

THE GOVERNMENTAL FUNCTIONS OF REPRESENTATIVE ASSEMBLIES

PRIVATE LAW AND PUBLIC LAW

CONSTITUTIONAL LAW

FINANCIAL LEGISLATION

ADMINISTRATIVE LAW AND THE POLICE POWER

THE ‘MEASURES’ OF POLICY

THE TRANSFORMATION OF PRIVATE LAW INTO PUBLIC LAW BY ‘SOCIAL’ LEGISLATION

THE MENTAL BIAS OF A LEGISLATURE PREOCCUPIED WITH GOVERNMENT

Volume 2 THE MIRAGE OF SOCIAL JUSTICE

7 GENERAL WELFARE AND PARTICULAR PURPOSES

IN A FREE SOCIETY THE GENERAL GOOD CONSISTS PRINCIPALLY IN THE FACILITATION OF THE PURSUIT OF UNKNOWN INDIVIDUAL PURPOSES

THE GENERAL INTEREST AND COLLECTIVE GOODS

RULES AND IGNORANCE

THE SIGNIFICANCE OF ABSTRACT RULES AS GUIDES IN A WORLD IN WHICH MOST OF THE PARTICULARS ARE UNKNOWN

WILL AND OPINION, ENDS AND VALUES, COMMANDS AND RULES, AND OTHER TERMINOLOGICAL ISSUES

ABSTRACT RULES OPERATE AS ULTIMATE VALUES BECAUSE THEY SERVE UNKNOWN PARTICULAR ENDS

THE CONSTRUCTIVIST FALLACY OF UTILITARIANISM

ALL VALID CRITICISM OR IMPROVEMENT OF RULES OF CONDUCT MUST PROCEED WITHIN A GIVEN SYSTEM OF SUCH RULES

‘GENERALIZATION’ AND THE TEST OF UNIVERSALIZABILITY

TO PERFORM THEIR FUNCTIONS RULES MUST BE APPLIED THROUGH THE LONG RUN

8 THE QUEST FOR JUSTICE

JUSTICE IS AN ATTRIBUTE OF HUMAN CONDUCT

JUSTICE AND THE LAW

RULES OF JUST CONDUCT ARE GENERALLY PROHIBITIONS OF UNJUST CONDUCT

NOT ONLY THE RULES OF JUST CONDUCT, BUT ALSO THE TEST OF THEIR JUSTICE, ARE NEGATIVE

THE SIGNIFICANCE OF THE NEGATIVE CHARACTER OF THE TEST OF INJUSTICE

THE IDEOLOGY OF LEGAL POSITIVISM

THE ‘PURE THEORY OF LAW’

LAW AND MORALS

THE ‘LAW OF NATURE’

LAW AND SOVEREIGNTY

9 ‘SOCIAL’ OR DISTRIBUTIVE JUSTICE

THE CONCEPT OF ‘SOCIAL JUSTICE’

THE CONQUEST OF PUBLIC IMAGINATION BY ‘SOCIAL JUSTICE’

THE INAPPLICABILITY OF THE CONCEPT OF JUSTICE TO THE RESULTS OF A SPONTANEOUS PROCESS

THE RATIONALE OF THE ECONOMIC GAME IN WHICH ONLY THE CONDUCT OF THE PLAYERS BUT NOT THE RESULT CAN BE JUST

THE ALLEGED NECESSITY OF A BELIEF IN THE JUSTICE OF REWARDS

THERE IS NO ‘VALUE TO SOCIETY’

THE MEANING OF ‘SOCIAL’

‘SOCIAL JUSTICE’ AND EQUALITY

‘EQUALITY OF OPPORTUNITY’

‘SOCIAL JUSTICE’ AND FREEDOM UNDER THE LAW

THE SPATIAL RANGE OF ‘SOCIAL JUSTICE’

CLAIMS FOR COMPENSATION FOR DISTASTEFUL JOBS

THE RESENTMENT OF THE LOSS OF ACCUSTOMED POSITIONS

CONCLUSIONS

APPENDIX TO CHAPTER 9: JUSTICE AND INDIVIDUAL RIGHTS

10 THE MARKET ORDER OR CATALLAXY

THE NATURE OF THE MARKET ORDER

A FREE SOCIETY IS A PLURALISTIC SOCIETY WITHOUT A COMMON HIERARCHY OF PARTICULAR ENDS

THOUGH NOT A SINGLE ECONOMY, THE GREAT SOCIETY IS STILL HELD TOGETHER MAINLY BY WHAT VULGARLY ARE CALLED ECONOMIC RELATIONS

THE AIM OF POLICY IN A SOCIETY OF FREE MEN CANNOT BE A MAXIMUM OF FOREKNOWN RESULTS BUT ONLY AN ABSTRACT ORDER

THE GAME OF CATALLAXY

IN JUDGING THE ADAPTATIONS TO CHANGING CIRCUMSTANCES COMPARISONS OF THE NEW WITH THE FORMER POSITION ARE IRRELEVANT

RULES OF JUST CONDUCT PROTECT ONLY MATERIAL DOMAINS AND NOT MARKET VALUES

THE CORRESPONDENCE OF EXPECTATIONS IS BROUGHT ABOUT BY A DISAPPOINTMENT OF SOME EXPECTATIONS

ABSTRACT RULES OF JUST CONDUCT CAN DETERMINE ONLY CHANCES AND NOT PARTICULAR RESULTS

SPECIFIC COMMANDS (‘INTERFERENCE’) IN A CATALLAXY CREATE DISORDER AND CAN NEVER BE JUST

THE AIM OF LAW SHOULD BE TO IMPROVE EQUALLY THE CHANCES OF ALL

THE GOOD SOCIETY IS ONE IN WHICH THE CHANCES OF ANYONE SELECTED AT RANDOM ARE LIKELY TO BE AS GREAT AS POSSIBLE

11 THE DISCIPLINE OF ABSTRACT RULES AND THE EMOTIONS OF THE TRIBAL SOCIETY

THE PURSUIT OF UNATTAINABLE GOALS MAY PREVENT THE ACHIEVEMENT OF THE POSSIBLE

THE CAUSES OF THE REVIVAL OF THE ORGANIZATIONAL THINKING OF THE TRIBE

THE IMMORAL CONSEQUENCES OF MORALLY INSPIRED EFFORTS

IN THE GREAT SOCIETY ‘SOCIAL JUSTICE’ BECOMES A DISRUPTIVE FORCE

FROM THE CARE OF THE MOST UNFORTUNATE TO THE PROTECTION OF VESTED INTERESTS

ATTEMPTS TO ‘CORRECT’ THE ORDER OF THE MARKET LEAD TO ITS DESTRUCTION

THE REVOLT AGAINST THE DISCIPLINE OF ABSTRACT RULES

THE MORALS OF THE OPEN AND OF THE CLOSED SOCIETY

THE OLD CONFLICT BETWEEN LOYALTY AND JUSTICE

THE SMALL GROUP IN THE OPEN SOCIETY

THE IMPORTANCE OF VOLUNTARY ASSOCIATIONS

Volume 3 THE POLITICAL ORDER OF A FREE PEOPLE

12 MAJORITY OPINION AND CONTEMPORARY DEMOCRACY

THE PROGRESSIVE DISILLUSIONMENT ABOUT DEMOCRACY

UNLIMITED POWER: THE FATAL DEFECT OF THE PREVAILING FORM OF DEMOCRACY

THE TRUE CONTENT OF THE DEMOCRATIC IDEAL

THE WEAKNESS OF AN ELECTIVE ASSEMBLY WITH UNLIMITED POWERS

COALITIONS OF ORGANIZED INTERESTS AND THE APPARATUS OF PARA-GOVERNMENT

AGREEMENT ON GENERAL RULES AND ON PARTICULAR MEASURES

13 THE DIVISION OF DEMOCRATIC POWERS

THE LOSS OF THE ORIGINAL CONCEPTION OF THE FUNCTIONS OF A LEGISLATURE

EXISTING REPRESENTATIVE INSTITUTIONS HAVE BEEN SHAPED BY THE NEEDS OF GOVERNMENT, NOT OF LEGISLATION

BODIES WITH POWERS OF SPECIFIC DIRECTION ARE UNSUITED FOR LAW-MAKING

THE CHARACTER OF EXISTING ‘LEGISLATURES’ DETERMINED BY THEIR GOVERNMENTAL TASKS

PARTY LEGISLATION LEADS TO THE DECAY OF DEMOCRATIC SOCIETY

THE CONSTRUCTIVISTIC SUPERSTITION OF SOVEREIGNTY

THE REQUISITE DIVISION OF THE POWERS OF REPRESENTATIVE ASSEMBLIES

DEMOCRACY OR DEMARCHY?

14 THE PUBLIC SECTOR AND THE PRIVATE SECTOR

THE DOUBLE TASK OF GOVERNMENT

COLLECTIVE GOODS

THE DELIMITATION OF THE PUBLIC SECTOR

THE INDEPENDENT SECTOR

TAXATION AND THE SIZE OF THE PUBLIC SECTOR

SECURITY

GOVERNMENT MONOPOLY OF SERVICES

INFORMATION AND EDUCATION

OTHER CRITICAL ISSUES

15 GOVERNMENT POLICY AND THE MARKET

THE ADVANTAGES OF COMPETITION DO NOT DEPEND ON IT BEING ‘PERFECT’1

COMPETITION AS A DISCOVERY PROCEDURE

IF THE FACTUAL REQUIREMENTS OF ‘PERFECT’ COMPETITION ARE ABSENT, IT IS NOT POSSIBLE TO MAKE FIRMS ACT ‘AS IF’ IT EXISTED

THE ACHIEVEMENTS OF THE FREE MARKET

COMPETITION AND RATIONALITY

SIZE, CONCENTRATION AND POWER

THE POLITICAL ASPECTS OF ECONOMIC POWER

WHEN MONOPOLY BECOMES HARMFUL

THE PROBLEM OF ANTI-MONOPOLY LEGISLATION

NOT INDIVIDUAL BUT GROUP SELFISHNESS IS THE CHIEF THREAT

THE CONSEQUENCES OF A POLITICAL DETERMINATION OF THE INCOMES OF THE DIFFERENT GROUPS

ORGANIZABLE AND NON-ORGANIZABLE INTERESTS

16 THE MISCARRIAGE OF THE DEMOCRATIC IDEAL: A RECAPITULATION

THE MISCARRIAGE OF THE DEMOCRATIC IDEAL

A ‘BARGAINING’ DEMOCRACY

THE PLAYBALL OF GROUP INTERESTS

LAWS VERSUS DIRECTIONS

LAWS AND ARBITRARY GOVERNMENT

FROM UNEQUAL TREATMENT TO ARBITRARINESS

SEPARATION OF POWERS TO PREVENT UNLIMITED GOVERNMENT

17 A MODEL CONSTITUTION

THE WRONG TURN TAKEN BY THE DEVELOPMENT OF REPRESENTATIVE INSTITUTIONS

THE VALUE OF A MODEL OF AN IDEAL CONSTITUTION

THE BASIC PRINCIPLES

THE TWO REPRESENTATIVE BODIES WITH DISTINCTIVE FUNCTIONS

FURTHER OBSERVATIONS ON REPRESENTATION BY AGE GROUPS

THE GOVERNMENTAL ASSEMBLY

THE CONSTITUTIONAL COURT

THE GENERAL STRUCTURE OF AUTHORITY

EMERGENCY POWERS

THE DIVISION OF FINANCIAL POWERS

18 THE CONTAINMENT OF POWER AND THE DETHRONEMENT OF POLITICS

LIMITED AND UNLIMITED POWER

PEACE, FREEDOM AND JUSTICE: THE THREE GREAT NEGATIVES

CENTRALIZATION AND DECENTRALIZATION

THE RULE OF THE MAJORITY VERSUS THE RULE OF LAWS APPROVED BY THE MAJORITY

MORAL CONFUSION AND THE DECAY OF LANGUAGE

DEMOCRATIC PROCEDURE AND EGALITARIAN OBJECTIVES

‘STATE’ AND ‘SOCIETY’

A GAME ACCORDING TO RULES CAN NEVER KNOW JUSTICE OF TREATMENT

THE PARA-GOVERNMENT OF ORGANIZED INTERESTS AND THE HYPERTROPHY OF GOVERNMENT

UNLIMITED DEMOCRACY AND CENTRALIZATION

THE DEVOLUTION OF INTERNAL POLICY TO LOCAL GOVERNMENT14

THE ABOLITION OF THE GOVERNMENT MONOPOLY OF SERVICES

THE DETHRONEMENT OF POLITICS

EPILOGUE* THE THREE SOURCES OF HUMAN VALUES

THE ERRORS OF SOCIOBIOLOGY

THE PROCESS OF CULTURAL EVOLUTION

THE EVOLUTION OF SELF-MAINTAINING COMPLEX STRUCTURES

THE STRATIFICATION OF RULES OF CONDUCT36

CUSTOMARY RULES AND ECONOMIC ORDER

THE DISCIPLINE OF FREEDOM

THE RE-EMERGENCE OF SUPPRESSED PRIMORDIAL INSTINCTS

EVOLUTION, TRADITION AND PROGRESS

THE CONSTRUCTION OF NEW MORALS TO SERVE OLD INSTINCTS: MARX

THE DESTRUCTION OF INDISPENSABLE VALUES BY SCIENTIFIC ERROR: FREUD

THE TABLES TURNED

Topics: Economics, Political Theory