Nhung Nguyen

The Use of Knowledge in Society recalls the idea of Fountainhead written by Ayn Rand (1943). It seems to me that, the two books are under the mainstream of anti socialism and communism derived in 1940-1950s in the West. By criticizing the planning economy operated in the Soviet Union, and calling for decentralization in economic development, the two authors is likely raise their voice on this trend of thoughts at that time. Furthermore, the argument of “individual equilibrium” is absolutely against the main weakness of the socialism: the destruction of the ego.

Hayek stated that no one can understand all the needs of other people in the society to plan for natural resources. Moreover, the economic behavior should be decided by the price system rather than some “man of the spot”. Besides, the issues of the economic need to be solved by decentralization.

The article was published in 1945 when Soviet Union is known with enormous achievement of economic development and its core important the victory towards Fascism. Many people questioned about the critique of the capitalism toward the socialist economic system. However, many of Hayek’s contentment have been proved rationally, especially with the collapse of Soviet Union and Socialist block.

Marx content that the social class struggle is the main contradiction in the society, which would lead to the “revolution” of the proletarians against the bourgeoisie, in order to come to power. However, he did not present the solution in order to build the economy. While Keynes laid emphasis on the role and intervene of the government in controlling the economy. Hayek, with many other thinkers of his time, content the importance of the natural-control of the rational economic system, basing on the price system and taking price fluctuation into grant.

However, under the modern model of global economic development, there are numerous new challenges. One of them is the recent contentment of Steven Hawking on the emergence of inequality somewhat proves the rationalization of Marx’ thoughts. Marx was widely recognized until the middle of the 20^th century, then has been extreme denied in the last half of the century, by many authors as Hayek and Rand. However, in the two first decades of this century, many people start to read Marx again. This told us how chaotic, unstable and unpredictable the world economy is.