Question

1) Find a concept on your own from F.A. Hayek other than the importance of prices in conveying information to producers and consumers. You need to CLEARLY identify the source (i.e. name of the book and page, or link of the video and time, or name and link of the website). It is preferred that you use academic resources or books from the library.

What prompted Hayek to develop the idea that you chose?
How would you use this concept to explain an observation in your life, an historical event, a cultural norm or institution, a local/international problem, create a solution to an environmental issues, or to create a business opportunity?

Answer 1

One of the most important concepts introduced by F A Hayek is coercion. He attempts to find the systematic political philosophy which based on individual liberty. According to Hayek freedom is the absence of coercion. Coercion is the act occurred when one man’s action made another man’s will. Here coercion include aggressive use of physical violence and also include peaceful and non aggressive activities. So if there is any kind of coercion is occurred in the community the freedom will be damaged.
Reference; “Hayek and the concept of coercion” by Murray N Rothbard; published in Mises Daily Article in 2007.
Hayek promotes the concept of freedom and liberty. Coercion considered as one of the most important constraint for freedom. The personal intention ensures the conceptual distinction between freedom and coercion. The freedom of choice and opportunity being the constrained over the impersonal, unintentional operations of market forces. In real world, the constraints affect the development. Lack of freedom affects the international relations and the level of import and exports. This makes an international problem in economic sense. On the other hand the increasing level of the freedom will affect the environmental and public good very badly. The lessen restriction in this concepts affect over riding problem and also make inequality.