Chapter 4, The 'Inevitability' of Planning Summary and Analysis

According to Hayek, opinion over half a century results in the belief that planning is required due to changes in technology. The belief is the result of the Marxian concept called concentration of industry, or monopoly. Decisions concerning production are made by the monopolies or the state. Hayek continues to question whether planning is the result of technology or whether it is the result of the decisions made in various countries.

Technology refers to mass production techniques that require large production units in order to achieve low costs. However, not all industries require such large-scale firms in order to achieve low per unit costs. Monopoly is more likely the result of collusive agreements than it is economies of scale. If mass production leads to monopoly, then the industrially advanced countries of the time...