Chapter 9, Security and Freedom Summary and Analysis

Economic security and economic freedom go together. Hayek distinguishes between two kinds of security. There is a limited version of security, which is available for all. This form of security is not a privilege. The second is absolute security. This form isn't available for everyone and should not be given as a form of privilege. These refer to the security of a minimum level of income and a certain standard of life. The individual is assured of food, clothing, and shelter. He should also be assured of care for sickness or accidents. Economic security from business cycle fluctuations should not be considered serious enough to implement a planning mechanism that replaces the market.

Freedom of choice of occupation is not as plausible with planning. A market system attracts the required supply of labor through wages...