Law in its ideal form might be described as a ‘once-and-for-all’ command that is directed to unknown people and that is abstracted from all particula… - F.A. Hayek

The chief signifi cance of the comprehensive systems of unemployment compensation that have been adopted in all Western countries, however, is that they operate in a labor market dominated by the coercive action of unions and that they have been designed under strong union influence with the aim of assisting the unions in their wage policies. A system in which a worker is regarded as unable to fi nd employment and therefore is entitled to benefit because the workers in the fi rm or industry in which he seeks employment are on strike necessarily becomes a major support of union wage pressure. Such a system, which relieves the unions of the responsibility for the unemployment that their policies create and which places on the state the burden not merely of maintaining but of keeping content those who are kept out of jobs by them, can in the long run only make the employment problem more acute.

The dispute about socialism has thus become largely a dispute about means and not about ends — although the question whether the different ends of socialism can be simultaneously achieved is also involved.

The proper conclusion from the considerations I have advanced is by no means that we may confidently accept all the old and traditional values. Nor even that there are any values or moral principles, which science may not occasionally question. The social scientist who endeavours to understand how society functions, and to discover where it can be improved, must claim the right critically to examine, and even to judge, every single value of our society. The consequence of what I have said is merely that we can never at one and the same time question all its values. Such absolute doubt could lead only to the destruction of our civilisation and – in view of the numbers to which economic progress has allowed the human race to grow – to extreme misery and starvation. Complete abandonment of all traditional values is, of course, impossible; it would make man incapable of acting. If traditional and taught values formed by man in the course of the evolution of civilisation were renounced, this could only mean falling back on those instinctive values, which man developed in hundreds of thousands of years of tribal life, and which now are probably in a measure innate.