the price system is a mechanism for coordinating knowledge; and - F.A. Hayek

The creation of wealth is not simply a physical process and cannot be explained by a chain of cause and effect. It is determined not by objective physical facts known to any one mind but by the separate, differing, information of millions, which is precipitated in prices that serve to guide further decisions.

Although we had been warned by some of the greatest political thinkers of the nineteenth century, by Tocqueville and Lord Acton, that socialism means slavery, we have steadily moved in the direction of socialism.

Not Locke, nor Hume, nor Smith, nor Burke, could ever have argued, as Bentham did, that “every law is an evil for every law is an infraction of liberty.” Their argument was never a complete laissez faire argument, which, as the very words show, is also part of the French rationalist tradition and in its literal sense was never defended by any of the English classical economists. They knew better than most of their later critics that it was not some sort of magic but the evolution of “well-constructed institutions,” where the “rules and principles of contending interests and compromised advantages” would be reconciled, that had successfully channeled individual efforts to socially beneficial aims. In fact, their argument was never antistate as such, or anarchistic, which is the logical outcome of the laissez faire doctrine; it was an argument that accounted both for the proper functions of the state and for the limits of state action.