Quote of the Day : 'The road to serfdom – Cartoon 15' by Friedrich Hayek

 This is the 15th cartoon in Friedrich von Hayek's book, 'The Road to Serfdom'.

< The road to serfdom – Cartoon 15 >

< PAYMASTER >

Your wages are “planned.”…

Divisions of the wage scale must be arbitrary and rigid. 

Running a “planned state” from central headquarters is clumsy, unfair and inefficient.

< The road to serfdom – Cartoon 15 >

• Quote Meaning

This 15th chapter discusses the issues and outcomes associated with a centrally planned economy. In a planned economy, the centralized "paymaster" operates inefficiently and unfairly because wage distribution is arbitrary and inflexible. When centralized decisions attempt to regulate all economic activities, this can result in inefficiencies. Due to the absence of free market mechanisms, resource allocation is suboptimal, leading to decreased productivity and potential economic challenges.

• Who was Friedrich Hayek?

Friedrich Hayek was a renowned Austrian-British economist and philosopher, known for his work on classical liberalism and free-market capitalism. He is  where he warned against the dangers of central planning and totalitarianism, arguing for the importance of individual freedom and limited government intervention in economic affairs.

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