This paper examines the theoretical ideas of Friedrich von Hayek, arguably the key progenitor of the global economic orthodoxy of the past two decades. It assesses Hayek's thought as he presents it: namely as a form of liberalism. Section I argues that Hayek's thought, if liberal, is hostile to participatory democracy. Section II then argues the more radical thesis that neoliberalism is also in truth an illiberal doctrine. Founded not in any social contract doctrine, but a form of constructivism, neoliberal (...) thought at its base accepts the paradoxical need to "discipline subjects for freedom", however this might contravene peoples' natural, social inclinations. The argument is framed by reference to Aristophanes' great comedy, The Birds, whose off shore borderless empire ironically prefigures the dream of neoliberal social engineers, and their corporate supporters.
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In Hayek's Social and Political Thought, Roland Kley argues that Hayek's defense of capitalism is instrumentalist: that is, that Hayek sees market societies as efficient mechanisms that have no independent ethical justification. But in fact, Hayek does have such a standard, one that is expressed in the notion of a discipline of freedom. This standard derives from the moral anthropology of the liberal‐conservative tradition.

Hayek's attack on the ideal of social justice, though long ignored by political theorists, has recently been the subject of a number of largely unsympathetic studies (those of Lukes and Johnston being the most recent) in which his critique is dismissed as at best simply mistaken and at worst frivolous. The responses to Hayek's case against social justice, however, fail to draw any blood, for they do not seriously deal with Hayek's central claim that the very notion of social justice (...) is incoherent. (shrink)