Editing Friedrich Hayek (section)

== Life ==
=== Early life ===
Friedrich August von Hayek was born in [[Vienna]]<ref>{{cite web |title=University of Freiburg: Friedrich von Hayek |url=https://uni-freiburg.de/en/university/outstanding-achievements/research-prizes/friedrich-von-hayek/#:~:text=Friedrich%20August%20von%20Hayek%2C%20born,)%20and%20Economics%20(1923).}}</ref> to [[August von Hayek]] and Felicitas Hayek (''née'' [[von Juraschek]]). The surname [[Hayek]] is derived from the Czech surname Hájek and can be traced to an ancestor with the surname "Hagek" who migrated from [[Prague]] in the 1500s.{{sfn|Ebenstein|2001|p=12, 312}}

His father, born in 1871, also in Vienna, was a medical doctor employed by the municipal ministry of health.{{sfn|Ebenstein|2001|pp=[https://archive.org/details/friedrichhayekbi00eben/page/62 62, 248, 284]}} August was a part-time botany lecturer at the [[University of Vienna]].<ref name=":2" /> Friedrich was the oldest of three brothers, Heinrich (1900–1969) and Erich (1904–1986), who were one-and-a-half and five years younger than he was.{{sfn|Ebenstein|2001|p=7}}

His father's career as a university professor influenced Hayek's goals later in life.{{sfn|Ebenstein|2001|pp=7–8}} Both of his grandfathers, who lived long enough for Hayek to know them, were scholars.{{sfn|Ebenstein|2001|p=20}} [[:de:Franz von Juraschek|Franz von Juraschek]] was a leading economist in [[Austria-Hungary]] and a close friend of [[Eugen von Böhm-Bawerk]], one of the founders of the [[Austrian School]] of Economics.<ref>Note: Von Juraschek was a statistician and was later employed by the Austrian government.</ref> Hayek's paternal grandfather, [[Gustav von Hayek|Gustav Edler von Hayek]], taught natural sciences at the Imperial ''Realobergymnasium'' (secondary school) in Vienna. He wrote works in the field of biological systematics, some of which are relatively well known.{{sfn|Ebenstein|2001|p=8}}

On his mother's side, Hayek was second cousin to the philosopher [[Ludwig Wittgenstein]].<ref>{{Cite book|last=Janik|first=Allan|title=Family Relationships and Family Resemblances: Hayek and Wittgenstein}}</ref> His mother often played with Wittgenstein's sisters and had known him well. As a result of their family relationship, Hayek became one of the first to read Wittgenstein's ''[[Tractatus Logico-Philosophicus]]'' when the book was published in its original German edition in 1921.<ref>{{Cite book|last=Erbacher|first=Christian|title=Friedrich August von Hayek's Draft Biography of Ludwig Wittgenstein}}</ref> Although he met Wittgenstein on only a few occasions, Hayek said that Wittgenstein's philosophy and methods of analysis had a profound influence on his own life and thought.{{sfn|Ebenstein|2001|p=245}} In his later years, Hayek recalled a discussion of philosophy with Wittgenstein when both were officers during World War I.<ref>''Hayek on Hayek: an autobiographical dialogue'', By Friedrich August Hayek, Routledge, 1994, p. 51</ref> 

After Wittgenstein's death, Hayek had intended to write a biography of him; he worked on collecting family materials, and later assisted biographers of Wittgenstein.<ref>''Young Ludwig: Wittgenstein's life'', 1889–1921, Brian McGuinness, Oxford University Press, 2005 p. xii</ref> He was related to Wittgenstein on the non-Jewish side of the [[Wittgenstein family]]. Since his youth, Hayek frequently socialized with [[Jews|Jewish]] intellectuals, and he mentioned that people often speculated as to whether he too was of Jewish ancestry. That made him curious, so he spent some time researching his ancestors and found out that he had no Jewish ancestors within five generations.<ref>Hayek on Hayek: an autobiographical dialogue, By Friedrich August Hayek, Routledge, 1995, p. 53.</ref>

Hayek displayed an intellectual and academic bent from a very young age and read fluently and frequently before going to school.<ref name=":3"/>{{sfn|Ebenstein|2001|p=9}} However, he did quite poorly at school, due to the lack of interest and problems with teachers.{{sfn|Ebenstein|2001|p=14}} He was at the bottom of his class in most subjects and once received three failing grades, in Latin, Greek, and mathematics.{{sfn|Ebenstein|2001|p=14}} He was very interested in theater, even attempting to write some tragedies, and [[biology]], regularly helping his father with his botanical work.{{sfn|Ebenstein|2001|p=13}} At his father's suggestion, as a teenager he read the genetic and evolutionary works of [[Hugo de Vries]] and [[August Weismann]] and the philosophical works of [[Ludwig Feuerbach]].<ref name=UCLA>{{cite web|url=https://archive.org/details/nobelprizewinnin00haye |title=UCLA Oral History 1978 Interviews with Friedrich Hayek|pages=32–38 |date=10 March 2001 |access-date=14 September 2011}}</ref> He noted [[Johann Wolfgang von Goethe|Goethe]] as the greatest early intellectual influence.{{sfn|Ebenstein|2001|p=13}} In school, Hayek was much taken by one instructor's lectures on [[Aristotle's ethics]].<ref>{{Cite book| publisher = Routledge| isbn = 978-0-226-32062-5| last1 = Kresge| first1 = Stephen| last2 = Wenar| first2 = Leif| title = Hayek on Hayek: An Autobiographical Dialogue| year=2005|page=39}}</ref> In his unpublished autobiographical notes, Hayek recalled a division between him and his younger brothers who were only a few years younger than him, but he believed that they were somehow of a different generation. He preferred to associate with adults.{{sfn|Ebenstein|2001|p=9}}

In 1917, Hayek joined an artillery regiment in the [[Austro-Hungarian Army]] and fought on the [[Italian front (World War I)|Italian front]].<ref>''Friedrich August von Hayek'', [https://www.nbs.sk/_img/Documents/BIATEC/BIA11_02/20_23.pdf link] {{Webarchive|url=https://web.archive.org/web/20210623183242/https://www.nbs.sk/_img/Documents/BIATEC/BIA11_02/20_23.pdf |date=23 June 2021 }}</ref> Hayek suffered damage to his hearing in his left ear during the war<ref>{{cite web|url=https://mises.org/daily/3458|title=Friedrich Hayek as a Teacher|author=David Gordon|date=8 May 2009|access-date=13 September 2014|archive-date=17 October 2014|archive-url=https://web.archive.org/web/20141017232529/http://mises.org/daily/3458|url-status=live}}</ref> and was decorated for bravery.{{Citation needed|date=October 2024}}

Hayek then decided to pursue an academic career, determined to help avoid the mistakes that had led to the war. Hayek said of his experience: "The decisive influence was really [[World War I]]. It's bound to draw your attention to the problems of political organization".<ref>{{cite book|author=Deirdre N. McCloskey|title=How to Be Human: Though an Economist|url=https://books.google.com/books?id=RPw3dMi95WoC&pg=PA33|year=2000|publisher=U of Michigan Press|page=33|isbn=978-0-472-06744-2}}</ref>

=== Education ===
At the [[University of Vienna]], Hayek initially studied mostly philosophy, psychology and economics.<ref name=":4"/><ref>{{cite web |title=Contemporary Thinkers: Friedrich Hayek |url=https://contemporarythinkers.org/friedrich-hayek/biography/}}</ref> The university allowed students to choose their subjects freely and there was not much obligatory written work, or tests except main exams at the end of the study.{{sfn|Ebenstein|2001|p=28}} By the end of his studies Hayek became more interested in economics, mostly for financial and career reasons; he planned to combine law and economics to start a career in diplomatic service.{{sfn|Ebenstein|2001|p=22}} He earned doctorates in law and political science in 1921 and 1923 respectively.<ref name=":4" />

For a short time, when the University of Vienna closed he studied in [[Constantin von Monakow]]'s Institute of Brain Anatomy, where Hayek spent much of his time [[staining]] brain cells.<ref name=":6">''Some Reflection on Hayek's The Sensory Order'', Caldwell, 2004</ref> Hayek's time in Monakow's lab and his deep interest in the work of [[Ernst Mach]] inspired his first intellectual project, eventually published as ''The Sensory Order'' (1952).<ref name="Backhaus2005" /><ref name=":6" /> It located connective learning at the physical and neurological levels, rejecting the "sense data" associationism of the [[empiricists]] and [[logical positivism|logical positivists]].<ref name="Backhaus2005">
The Sensory Order (1952) on learning
* {{cite book| publisher = Edward Elgar Publishing| isbn = 978-1-84542-795-5| last = Backhaus| first = Jurgen G.| title = Entrepreneurship, Money and Coordination: Hayek's Theory of Cultural Evolution| year= 2005|page=48}}
* {{cite book| publisher = Edward Elgar Publishing| isbn = 978-1-78100-102-8 |editor=Richard Arena |editor2=Agnès Festré |editor3=Nathalie Lazaric | title = Handbook of Knowledge and Economics| year= 2012|page=133}}
</ref> Hayek presented his work to the private seminar he had created with [[Herbert Furth]] called [[the Geistkreis]].<ref>{{cite web|url=https://mises.org/library/viennese-connection-alfred-schutz-and-austrian-school-0|title=The Viennese Connection: Alfred Schutz and the Austrian School|last=kanopiadmin|date=30 July 2014|website=Mises Institute|access-date=2 January 2019|archive-date=11 September 2013|archive-url=https://web.archive.org/web/20130911152119/http://mises.org/journals/qjae/pdf/qjae6_2_2.pdf|url-status=live}}</ref>

During Hayek's years at the University of Vienna, [[Carl Menger]]'s work on the explanatory strategy of social science and [[Friedrich von Wieser]]'s commanding presence in the classroom left a lasting influence on him.<ref name=UCLA/> Upon the completion of his examinations, Hayek was hired by [[Ludwig von Mises]] on the recommendation of Wieser as a specialist for the Austrian government working on the legal and economic details of the [[Treaty of Saint-Germain-en-Laye (1919)|Treaty of Saint-Germain-en-Laye]].<ref name=":7">{{Citation|last=French|first=Douglas|title=Hayek and Mises|date=2013|work=Hayek: A Collaborative Biography: Part 1 Influences, from Mises to Bartley|pages=80–92|editor-last=Leeson|editor-first=Robert|series=Archival Insights into the Evolution of Economics Series|location=London|publisher=Palgrave Macmillan UK|language=en|doi=10.1057/9781137328564_6|isbn=978-1-137-32856-4}}</ref> Between 1923 and 1924, Hayek worked as a research assistant to Professor [[Jeremiah Jenks]] of [[New York University]], compiling macroeconomic data on the American economy and the operations of the [[Federal Reserve]].<ref>A.J. Tebble, ''F.A. Hayek'', Continuum International Publishing Group, 2010, pp. 4–5</ref> He was influenced by [[Wesley Clair Mitchell]] and started a doctoral program on problems of monetary stabilization but didn't finish it.{{sfn|Ebenstein|2001|p=33}} His time in America wasn't especially happy. He had very limited social contacts, missed the cultural life of Vienna, and was troubled by his poverty.{{sfn|Ebenstein|2001|p=35}} His family's financial situation deteriorated significantly after the War.<ref name=":8">{{Cite book|last=Leeson|first=Robert|title=Hayek: A Collaborative Biography|year=2018}}</ref>

Initially sympathetic to Wieser's [[democratic socialism]], Hayek found [[Marxism]] rigid and unattractive, and his mild socialist phase lasted until he was about 23.{{sfn|Ebenstein|2001|p=23}} Hayek's economic thinking shifted away from socialism and toward the [[classical liberalism]] of Carl Menger after reading von Mises' book ''[[Socialism (book)|Socialism]]''.<ref name=":7" /> It was sometime after reading ''Socialism'' that Hayek began attending von Mises' private seminars, joining several of his university friends, including [[Fritz Machlup]], [[Alfred Schutz]], [[Felix Kaufmann]] and [[Gottfried Haberler]], who were also participating in Hayek's own more general and private seminar. It was during this time that he also encountered and befriended noted political philosopher [[Eric Voegelin]], with whom he retained a long-standing relationship.<ref>Federici, Michael. ''Eric Voegelin: The Restoration of Order'', ISI Books, 2002, p. 1</ref>

=== London School of Economics ===
With the help of Mises, in the late 1920s, he founded and served as director of the [[Austrian Institute of Economic Research|Austrian Institute for Business Cycle Research]] before joining the faculty of the [[London School of Economics]] (LSE) in 1931 at the behest of [[Lionel Robbins]].<ref name=":9">{{Cite web|date=23 January 2013|title=WIFO – About WIFO|url=http://www.wifo.ac.at/wwa/jsp/index.jsp?&language=2&fid=23910|access-date=28 April 2021|archive-url=https://web.archive.org/web/20130123163235/http://www.wifo.ac.at/wwa/jsp/index.jsp?&language=2&fid=23910|archive-date=23 January 2013}}</ref> Upon his arrival in London, Hayek was quickly recognised as one of the leading economic theorists in the world and his development of the economics of processes in time and the co-ordination function of prices inspired the ground-breaking work of [[John Hicks]], [[Abba P. Lerner]] and many others in the development of modern microeconomics.<ref>{{cite web |last=Baxendale |first=Toby |url=http://www.cobdencentre.org/2010/07/the-battle-of-the-letters/ |title=The Battle of the Letters: Keynes v Hayek 1932, Skidelsky v Besley 2010 |publisher=The Cobden Centre |date=25 October 2010 |access-date=14 September 2011 |archive-date=2 September 2011 |archive-url=https://web.archive.org/web/20110902120125/http://www.cobdencentre.org/2010/07/the-battle-of-the-letters/ |url-status=live }}</ref>

In 1932, Hayek suggested that private investment in the public markets was a better road to wealth and economic co-ordination in Britain than government spending programs as argued in an exchange of letters with [[John Maynard Keynes]], co-signed with Lionel Robbins and others in ''[[The Times]]''.<ref>{{cite web |url=http://thinkmarkets.files.wordpress.com/2010/06/keynes-hayek-1932-cambridgelse.pdf |title=Info |date=2010 |website=thinkmarkets.files.wordpress.com |access-date=20 August 2011 |archive-date=18 July 2013 |archive-url=https://web.archive.org/web/20130718000832/http://thinkmarkets.files.wordpress.com/2010/06/keynes-hayek-1932-cambridgelse.pdf |url-status=live }}</ref><ref>Malcolm Perrine McNair, Richard Stockton Meriam, ''Problems in business economics'', McGraw-Hill, 1941, p. 504</ref> The nearly decade long [[deflation]]ary depression in Britain dating from [[Winston Churchill]]'s decision in 1925 to return Britain to the [[gold standard]] at the old pre-war and pre-inflationary par was the public policy backdrop for Hayek's dissenting engagement with Keynes over British monetary and fiscal policy.<ref>{{Cite book|last=Hayek|title=Reader's Digest Road to Serfdom|publisher=Reader's Digest|year=1945}}</ref> Keynes called Hayek's book ''Prices and Production'' "one of the most frightful muddles I have ever read", famously adding: "It is an extraordinary example of how, starting with a mistake, a remorseless logician can end in Bedlam".<ref>[https://www.bbc.com/news/business-14366054 "Keynes v Hayek: Two economic giants go head to head"] {{Webarchive|url=https://web.archive.org/web/20201023161952/https://www.bbc.com/news/business-14366054 |date=23 October 2020 }}, Business – ''BBC News'', 2 August 2011.</ref>

Notable economists who studied with Hayek at the LSE in the 1930s and 1940s include [[Arthur Lewis (economist)|Arthur Lewis]], [[Ronald Coase]], [[William Baumol]], [[CH Douglas]], [[John Kenneth Galbraith]], [[Leonid Hurwicz]], [[Abba Lerner]], [[Nicholas Kaldor]], [[George Shackle]], [[Thomas Balogh]], [[L. K. Jha]], [[Arthur Seldon]], [[Paul Rosenstein-Rodan]] and [[Oskar Lange]].<ref>{{cite book |first=J.K. |last=Galbraith |chapter=Nicholas Kaldor Remembered |title=Nicholas Kaldor and Mainstream Economics: Confrontation or Convergence? |location=New York |publisher=St. Martin's Press |isbn=978-0-312-05356-7 |year=1991 }}</ref><ref>{{cite web |url=http://nobelprize.org/nobel_prizes/economics/laureates/1979/lewis-autobio.html |title=Sir Arthur Lewis Autobiography |publisher=Nobelprize.org |access-date=14 September 2011 |archive-date=26 September 2011 |archive-url=https://web.archive.org/web/20110926021808/http://www.nobelprize.org/nobel_prizes/economics/laureates/1979/lewis-autobio.html |url-status=live }}</ref>{{sfn|Ebenstein|2001|pp=[https://archive.org/details/friedrichhayekbi00eben/page/62 62, 248, 284]}} Some were supportive and some were critical of his ideas. Hayek also taught or tutored many other LSE students, including [[David Rockefeller]].<ref>{{Cite web|url=http://www.mskousen.com/Speeches/rockefeller.html|archive-url=https://web.archive.org/web/20090706093719/http://www.mskousen.com/Speeches/rockefeller.html|title=Interview with David Rockefeller|archive-date=6 July 2009}}</ref>

In 1937, Hayek gave a summer course at the [[Geneva Graduate Institute]], then a stronghold of neoliberal thought that was home to [[Ludwig von Mises]].<ref>{{Cite journal |last=Denord |first=François |date=2002 |title=Le prophète, le pèlerin et le missionnaire |url=https://www.persee.fr/doc/arss_0335-5322_2002_num_145_1_2794 |journal=Actes de la Recherche en Sciences Sociales |volume=145 |issue=1 |pages=9–20 |doi=10.3406/arss.2002.2794}}</ref> Unwilling to return to Austria after the ''[[Anschluss]]'' brought it under the control of [[Nazi Germany]] in 1938, Hayek remained in Britain. Hayek and his children became [[British subject]]s in 1938.<ref>{{London Gazette|issue=34541|date=12 August 1938 |page=5182}}</ref> He held this status for the remainder of his life, but he did not live in Great Britain after 1950. He lived in the United States from 1950 to 1962 and then mostly in Germany, but also briefly in Austria.<ref name="ODNB">{{cite ODNB|id=51095|title=Hayek, Friedrich August (1899–1992)|year=2004|last=Brittan|first=Samuel}}</ref>

In 1947, Hayek was elected a [[List of Fellows of the Econometric Society|Fellow of the Econometric Society]].<ref>{{cite journal |date= January 1948 |title= Election of Fellows, 1947 |journal= [[Econometrica]] |volume= 16 |issue= 1 |pages= 117–122 |jstor= 1914293 }}</ref>

=== ''The Road to Serfdom'' ===
{{main|The Road to Serfdom}}
Hayek was concerned about the general view in Britain's academia that fascism was a capitalist reaction to socialism and ''The Road to Serfdom'' arose from those concerns.<ref>{{Cite web|last=kanopiadmin|date=18 August 2014|title=The Road to Serfdom|url=https://mises.org/library/road-serfdom-0|access-date=28 April 2021|website=Mises Institute|language=en|archive-date=15 September 2017|archive-url=https://web.archive.org/web/20170915010727/https://mises.org/library/road-serfdom-0|url-status=live}}</ref> In the book, Hayek {{nowrap|"[warns]}} of the danger of [[tyranny]] that inevitably results from government control of economic [[decision-making]] through [[Planned economy|central planning]]."<ref>{{cite journal |last=Ebeling |first=Richard M. |date=May 1999 |title=Friedrich A. Hayek: A Centenary Appreciation |url=http://www.thefreemanonline.org/featured/friedrich-a-hayek-a-centenary-appreciation/# |url-status=dead |journal=The Freeman |volume=49 |issue=5 |archive-url=https://archive.today/20130415224932/http://www.thefreemanonline.org/featured/friedrich-a-hayek-a-centenary-appreciation/ |archive-date=2013-04-15}}</ref> He further argues that the abandonment of [[individualism]] and [[classical liberalism]] inevitably leads to a loss of [[Liberty|freedom]], the creation of an oppressive society, the tyranny of a [[dictator]], and the [[serfdom]] of the individual. Hayek challenged the view, popular among British Marxists, that [[fascism]] (including [[Nazism]]) was a [[capitalist]] reaction against [[socialism]]. He argued that fascism, Nazism, and state-socialism had common roots in central economic planning and empowering the state over the individual.

The title was inspired by the French classical liberal thinker [[Alexis de Tocqueville]]'s writings on the "road to servitude".<ref>Ebenstein, p. 116.</ref> It was first published in Britain by [[Routledge]] in March 1944 and was quite popular, leading Hayek to call it "that unobtainable book" also due in part to wartime paper rationing.<ref>Ebenstein, p. 128.</ref> When it was published in the United States by the University of Chicago in September of that year, it achieved greater popularity than in Britain.<ref>A.J. Tebble, ''F.A. Hayek'', Continuum International Publishing Group, 2010, p. 8</ref> At the instigation of editor [[Max Eastman]], the American magazine ''[[Reader's Digest]]'' also published an abridged version in April 1945, enabling ''The Road to Serfdom'' to reach a far wider audience than academics. The book is widely popular among those advocating [[individualism]] and [[classical liberalism]].<ref>{{cite news|last1=Beam|first1=Christopher|title=The Trouble With Liberty|url=https://nymag.com/news/politics/70282/index2.html|access-date=7 November 2015|work=New York Magazine|publisher=New York Media, LLC|date=3 January 2011|archive-date=21 September 2024|archive-url=https://web.archive.org/web/20240921023511/https://nymag.com/news/politics/70282/index2.html|url-status=live}}</ref>

=== Chicago ===
In 1950, Hayek left the London School of Economics. After spending the 1949–1950 academic year as a visiting professor at the [[University of Arkansas]], Hayek was conferred professorship by the [[University of Chicago]], where he became a professor in the [[Committee on Social Thought]].<ref name=":10">{{Citation|last=Mitch|first=David|title=Morality versus Money: Hayek's Move to the University of Chicago|date=2015|work=Hayek: A Collaborative Biography: Part IV, England, the Ordinal Revolution and the Road to Serfdom, 1931–50|pages=215–55|editor-last=Leeson|editor-first=Robert|series=Archival Insights into the Evolution of Economics|place=London|publisher=Palgrave Macmillan UK|language=en|doi=10.1057/9781137452603_7|isbn=978-1-137-45260-3}}</ref> Hayek's salary was funded not by the university, but by an outside foundation, the [[William Volker Fund]].<ref>{{Cite book|last=Compton|first=John|title=The End of Empathy|publisher=Oxford University Press|year=2020}}</ref>

Hayek had made contact with many at the University of Chicago in the 1940s, with Hayek's ''The Road to Serfdom'' playing a seminal role in transforming how [[Milton Friedman]] and others understood how society works.<ref>Milton and Rose Friedman, ''Two Lucky People: Memoirs'' (Chicago: U. of Chicago Press, 1998)</ref> Hayek conducted a number of influential faculty seminars while at the University of Chicago and a number of academics worked on research projects sympathetic to some of Hayek's own, such as [[Aaron Director]], who was active in the [[Chicago school of economics|Chicago School]] in helping to fund and establish what became the "Law and Society" program in the University of Chicago Law School.<ref>{{cite book|author=Ross B. Emmett|title=The Elgar Companion to the Chicago School of Economics|url=https://books.google.com/books?id=MaCciKWcDIAC&pg=PA266|year=2010|publisher=Edward Elgar Publishing|pages= 164, 200, 266–67|isbn=978-1-84980-666-4}}</ref> Hayek, [[Frank Knight]], Friedman and [[George Stigler]] worked together in forming the [[Mont Pèlerin Society]], an international forum for neoliberals.<ref>{{Cite journal|last=Friedman|first=Milton|date=1951|title=Neo-Liberalism and its Prospects|journal=Farmand|pages=89–93}}</ref> Hayek and Friedman cooperated in support of the Intercollegiate Society of Individualists, later renamed the [[Intercollegiate Studies Institute]], an American student organisation devoted to libertarian ideas.<ref name="ODNB"/><ref>Johan Van Overtveldt, ''The Chicago School: How the University of Chicago Assembled the Thinkers Who Revolutionized Economics and Business'' (2006) pp. 7, 341–46</ref>

Although they shared most political beliefs, disagreeing primarily on the question of monetary policy,{{sfn|Ebenstein|2001|p=270}} Hayek and Friedman worked in separate university departments with different research interests and never developed a close working relationship.<ref>{{Citation|last=Van Horn|first=Robert|title=Hayek and the Chicago School|date=2015|work=Hayek: A Collaborative Biography: Part V Hayek's Great Society of Free Men|pages=91–111|editor-last=Leeson|editor-first=Robert|series=Archival Insights into the Evolution of Economics|place=London|publisher=Palgrave Macmillan UK|language=en|doi=10.1057/9781137478245_3|isbn=978-1-137-47824-5}}</ref> According to [[Alan O. Ebenstein]], who wrote biographies of both of them, Hayek probably had a closer friendship with Keynes than with Friedman.{{sfn|Ebenstein|2001|p=267}}

Hayek received a [[Guggenheim Fellowship]] in 1954.<ref>{{Cite web|title=John Simon Guggenheim Foundation {{!}} Friedrich August von Hayek|url=https://www.gf.org/fellows/all-fellows/friedrich-august-von-hayek/|access-date=28 April 2021|language=en-US|archive-date=21 September 2024|archive-url=https://web.archive.org/web/20240921023515/https://www.gf.org/fellows/friedrich-august-von-hayek/|url-status=live}}</ref><ref>[http://www.libertystory.net/LSTHINKHAYEKLIFE.htm Biography] {{Webarchive|url=https://web.archive.org/web/20120717051359/http://www.libertystory.net/LSTHINKHAYEKLIFE.htm |date=17 July 2012 }} at LibertyStory.net</ref>

Another influential political philosopher and German-speaking exile at the University of Chicago at the time was [[Leo Strauss]], but according to his student [[Joseph Cropsey]] who also knew Hayek, there was no contact between the two of them.{{sfn|Ebenstein|2001|p=253}}

After editing a book on [[John Stuart Mill]]'s letters he planned to publish two books on the liberal order, ''[[The Constitution of Liberty]]'' and "The Creative Powers of a Free Civilization" (eventually the title for the second chapter of ''The Constitution of Liberty'').<ref>Ebenstein, p. 195.</ref> He completed ''The Constitution of Liberty'' in May 1959, with publication in February 1960. Hayek was concerned that "with that condition of men in which coercion of some by others is reduced as much as is possible in society".<ref name=":11">F.A. Hayek, ''The Constitution of Liberty'' (London: Routledge & Kegan Paul, 1960)</ref> Hayek was disappointed that the book did not receive the same enthusiastic general reception as ''The Road to Serfdom'' had sixteen years before.<ref>Ebenstein, p. 203.</ref>

He left Chicago mostly because of financial reasons, being concerned about his pension provisions.<ref>''F.A. Hayek, on the Occasion of the Centenary of His Birth'', [[Ronald Hamowy]], Cato Institute</ref> His primary source of income was his salary, and he received some additional money from book royalties but avoided other lucrative sources of income for academics such as writing textbooks.{{sfn|Ebenstein|2001|p=209}} He spent a lot on his frequent travels.{{sfn|Ebenstein|2001|p=209}} He regularly spent summers in [[Austrian Alps]], usually in the Tyrolean village [[Obergurgl]] where he enjoyed mountain climbing, and also visited Japan four times with additional trips to [[Tahiti]], [[Fiji]], [[Indonesia]], Australia, [[New Caledonia]] and [[Ceylon]].{{sfn|Ebenstein|2001|p=218}}  After his divorce, his financial situation worsened.{{sfn|Ebenstein|2001|pp=209–10}}

=== Freiburg and Salzburg ===
From 1962 until his retirement in 1968, he was a professor at the [[Albert Ludwigs University of Freiburg|University of Freiburg]], West Germany, where he began work on his next book, ''[[Law, Legislation and Liberty]]''. Hayek regarded his years at Freiburg as "very fruitful".<ref>Ebenstein, p. 218.</ref> Following his retirement, Hayek spent a year as a visiting professor of philosophy at the [[University of California, Los Angeles]], where he continued work on ''Law, Legislation and Liberty'', teaching a graduate seminar by the same name and another on the philosophy of social science.<ref name=":8" /> Preliminary drafts of the book were completed by 1970, but Hayek chose to rework his drafts and finally brought the book to publication in three volumes in 1973, 1976 and 1979.<ref name=":12" />

Hayek became a professor at the [[University of Salzburg]] from 1969 to 1977 and then returned to Freiburg.<ref name=":3" /> When Hayek left Salzburg in 1977, he wrote: "I made a mistake in moving to Salzburg". The economics department was small, and the library facilities were inadequate.<ref>Ebenstein, p. 254.</ref>

Although Hayek's health suffered, and he fell into a depressionary bout, he continued to work on his [[Masterpiece|magnum opus]], ''[[Law, Legislation and Liberty]]'' in periods when he was feeling better.{{sfn|Ebenstein|2001|pp=251–53}}

=== Nobel Memorial Prize ===
On 9 October 1974, it was announced that Hayek would be awarded the [[Nobel Memorial Prize in Economics]] with Swedish economist [[Gunnar Myrdal]].<ref name="Economics Prize For Works in Economic Theory And Inter-Disciplinary Research">{{cite web |url=http://nobelprize.org/nobel_prizes/economics/laureates/1974/press.html |title=The Prize in Economics 1974 |publisher=Nobelprize.org |date=9 October 1974 |access-date=14 September 2011 |archive-date=17 May 2013 |archive-url=https://web.archive.org/web/20130517131815/http://www.nobelprize.org/nobel_prizes/economics/laureates/1974/press.html |url-status=live }}</ref> He was surprised at being given the award and believed that he was given it with Myrdal to balance the award with someone from the opposite side of the political spectrum.<ref name="Ref-1">Ebenstein, p. 263.</ref>

Among the reasons given, the committee stated, Hayek "was one of the few economists who gave warning of the possibility of a major economic crisis before the great crash came in the autumn of 1929."<ref name="Economics Prize For Works in Economic Theory And Inter-Disciplinary Research"/> The following year, Hayek further confirmed his original prediction. An interviewer asked, "We understand that you were one of the only economists to forecast that America was headed for a depression, is that true?" Hayek responded, "Yes."<ref>{{cite book|url=https://books.google.com/books?id=3wJ2DwAAQBAJ&dq=I+was+one+of+the+only+ones+to+predict+what+was+going+to+happen.+In+early+1929%2C+when+I+made+this+forecast%2C+I+was+living+in+Europe+which+was+then+going+through+a+period+of+depression.+I+said+that+there+no+hope+of+recovery+in+Europe+until+interest+rates+fell%2C+and+interest+rates+would+not+fall+until+the+American+boom+collapses%2C+which+I+said+was+likely+to+happen+within+the+next+few+months&pg=PA194 | title=Gold & Silver Newsletter | year= 1975| isbn=978-3-319-95219-2 | last1=Leeson | first1=Robert | publisher=Springer }}</ref> However, no textual evidence has emerged of "a prediction".<ref>{{cite book |chapter=Hayek on Practical Business Cycle Research A Note |title=Austrian Economics in Transition: From Carl Menger to Friedrich Hayek |author=Klausinger, H. |editor=H. Hagemann |editor2=T. Nishizawa |editor3=Y. Ikeda| date=2010}}</ref><ref>{{citation |author=F.A. Hayek |contribution=Editorial Notes |title=The Collected Works of F.A. Hayek |volume=VII: Business Cycles |contributor=Klausinger, H. |editor=Klausinger, H. |date=2012}}</ref> Indeed, Hayek wrote on 26 October 1929, three days before the crash, "at present there is no reason to expect a sudden crash of the New York stock exchange. ... The credit possibilities/conditions are, at any rate, currently very great, and therefore it appears assured that an outright crisis-like destruction of the present high [price] level should not be feared."<ref>{{cite web|url=http://socialdemocracy21stcentury.blogspot.com/2011/12/hayek-and-stock-market-crash-of-1929-so.html | title=Translation of Quote in the blog: "Hayek and the Stock Market Crash of 1929: So Much for His Predictive Powers"| date=18 December 2011}}</ref><ref>{{citation| title=Monatsberichte des Österreichen Institutes für Konjunkturforschung| date=26 October 1929| page=182| author=Hayek, Friedrich August| url=https://www.wifo.ac.at/bibliothek/archiv/MOBE/1929Heft10.pdf| access-date=19 November 2021| archive-date=19 November 2021| archive-url=https://web.archive.org/web/20211119225500/https://www.wifo.ac.at/bibliothek/archiv/MOBE/1929Heft10.pdf| url-status=live}}</ref>

During the Nobel ceremony in December 1974, Hayek met the Russian dissident [[Aleksandr Solzhenitsyn]].<ref>{{Cite web|date=1 July 1992|title=The Road from Serfdom: An Interview with F.A. Hayek|url=https://reason.com/1992/07/01/the-road-from-serfdom-2/|access-date=28 April 2021|website=Reason.com|language=en-US|archive-date=28 April 2021|archive-url=https://web.archive.org/web/20210428190056/https://reason.com/1992/07/01/the-road-from-serfdom-2/|url-status=live}}</ref> Hayek later sent him a Russian translation of ''The Road to Serfdom''.<ref name="Ref-1"/> He spoke with apprehension at his award speech about the danger the authority of the prize would lend to an economist,<ref>{{cite web |url=http://nobelprize.org/nobel_prizes/economics/laureates/1974/hayek-speech.html |title=Friedrich August von Hayek – Banquet Speech |publisher=Nobelprize.org |date=10 December 1974 |access-date=14 September 2011 |archive-date=9 January 2010 |archive-url=https://web.archive.org/web/20100109114200/http://nobelprize.org/nobel_prizes/economics/laureates/1974/hayek-speech.html |url-status=live }}</ref> but the prize brought much greater public awareness to the then controversial ideas of Hayek and was described by his biographer as "the great rejuvenating event in his life".<ref>Ebenstein, p. 261.</ref>

=== British politics ===
{{Neoliberalism sidebar|expanded=people}}
{{Liberalism sidebar|expanded=philosophers}}

In February 1975, [[Margaret Thatcher]] was elected leader of the [[Conservative Party (UK)|British Conservative Party]]. The [[Institute of Economic Affairs]] arranged a meeting between Hayek and Thatcher in London soon after.<ref>Richard Cockett, ''Thinking the Unthinkable. Think-Tanks and the Economic Counter-Revolution, 1931–1983'' (Fontana, 1995), pp. 174–76.</ref> During Thatcher's only visit to the [[Conservative Research Department]] in the summer of 1975, a speaker had prepared a paper on why the "middle way" was the pragmatic path the Conservative Party should take, avoiding the extremes of left and right. Before he had finished, Thatcher "reached into her briefcase and took out a book. It was Hayek's ''The Constitution of Liberty''. Interrupting our pragmatist, she held the book up for all of us to see. 'This', she said sternly, 'is what we believe', and banged Hayek down on the table".<ref>John Ranelagh, ''Thatcher's People: An Insider's Account of the Politics, the Power, and the Personalities'' (Fontana, 1992), p. ix.</ref>

Despite the media depictions of him as Thatcher's guru and power behind the throne, the communication between him and the Prime Minister was not very regular, they were in contact only once or twice a year.{{sfn|Ebenstein|2001|pp=291–92}} Besides Thatcher, Hayek also had a significant influence on [[Enoch Powell]], [[Keith Joseph]], [[Nigel Lawson]], [[Geoffrey Howe]] and [[John Biffen]].{{sfn|Ebenstein|2001|p=293}}

Hayek gained some controversy in 1978 by praising Thatcher's [[Opposition to immigration|anti-immigration]] policy proposal in an article which ignited numerous accusations of [[anti-Semitism]] and racism because of his reflections on the inability of assimilation of Eastern European Jews in the Vienna of his youth.{{sfn|Ebenstein|2001|p=293}} He defended himself by explaining that he made no racial judgements, only highlighted the problems of acculturation.{{sfn|Ebenstein|2001|p=294}}

In 1977, Hayek was critical of the [[Lib–Lab pact#1977|Lib–Lab pact]] in which the [[Liberal Party (UK)|British Liberal Party]] agreed to keep the [[Labour Party (UK)|British Labour]] government in office. Writing to ''The Times'', Hayek said: "May one who has devoted a large part of his life to the study of the history and the principles of liberalism point out that a party that keeps a socialist government in power has lost all title to the name 'Liberal'. Certainly no liberal can in future vote 'Liberal{{'"}}.<ref>"Letters to the Editor: Liberal pact with Labour", ''The Times'' (31 March 1977), p. 15.</ref> Hayek was criticised by Liberal politicians [[Gladwyn Jebb]] and [[Andrew Phillips, Baron Phillips of Sudbury|Andrew Phillips]], who both claimed that the purpose of the pact was to discourage socialist legislation.

Lord Gladwyn pointed out that the [[Free Democratic Party (Germany)|German Free Democrats]] were in coalition with the [[Social Democratic Party of Germany|German Social Democrats]].<ref>"Letters to the Editor: Liberal pact with Labour", ''The Times'' (2 April 1977), p. 15.</ref> Hayek was defended by Professor [[Antony Flew]], who stated that—unlike the British Labour Party—the German Social Democrats had since the late 1950s abandoned public ownership of the means of production, distribution and exchange and had instead embraced the [[social market economy]].<ref>"Letters to the Editor: German socialist aims", ''The Times'' (13 April 1977), p. 13.</ref>

In 1978, Hayek came into conflict with Liberal Party leader [[David Steel]], who argued that liberty was possible only with "social justice and an equitable distribution of wealth and power, which in turn require a degree of active government intervention" and that the Conservative Party were more concerned with the connection between liberty and private enterprise than between liberty and democracy. Hayek argued that a limited democracy might be better than other forms of limited government at protecting liberty, but that an unlimited democracy was worse than other forms of unlimited government because "its government loses the power even to do what it thinks right if any group on which its majority depends thinks otherwise".

Hayek stated that if the Conservative leader had said "that free choice is to be exercised more in the market place than in the ballot box, she has merely uttered the truism that the first is indispensable for individual freedom while the second is not: free choice can at least exist under a dictatorship that can limit itself but not under the government of an unlimited democracy which cannot".<ref>"Letters to the Editor: The dangers to personal liberty", ''The Times'' (11 July 1978), p. 15.</ref>

Hayek supported Britain in the [[Falklands War]], writing that it would be justified to attack Argentinian territory instead of just defending the islands, which earned him a lot of criticism in Argentina, a country which he also visited several times. He was also displeased by the weak response of the United States to the [[Iran hostage crisis]], claiming that an ultimatum should be issued and Iran bombed if they do not comply. He supported Ronald Reagan's decision to keep high defence spending, believing that a strong US military is a guarantee of world peace and necessary to keep the Soviet Union under control.{{sfn|Ebenstein|2001|pp=300–01}} President [[Ronald Reagan|Reagan]] listed Hayek as among the two or three people who most influenced his philosophy and welcomed him to the White House as a special guest.<ref>Martin Anderson, "Revolution" (Harcourt Brace Jovanovich, 1988), p. 164</ref> Senator [[Barry Goldwater]] listed Hayek as his favourite political philosopher and congressman [[Jack Kemp]] named him an inspiration for his political career.{{sfn|Ebenstein|2001|pp=207–08}}

=== Recognition ===
In 1980, Hayek was one of twelve Nobel laureates to meet with [[Pope John Paul II]] "to dialogue, discuss views in their fields, communicate regarding the relationship between Catholicism and science, and 'bring to the Pontiff's attention the problems which the Nobel Prize Winners, in their respective fields of study, consider to be the most urgent for contemporary man'"{{sfn|Ebenstein|2001|p=301}}

Hayek was appointed a [[Member of the Order of the Companions of Honour]] (CH) in the [[1984 Birthday Honours]] on the advice of British Prime Minister [[Margaret Thatcher]] for his "services to the study of economics".<ref name="LGCH"/>{{sfn|Ebenstein|2001|p=305}} Hayek had hoped to receive a [[baronet]]cy and after being awarded the CH sent a letter to his friends requesting that he be called the English version of Friedrich (i.e. Frederick) from now on. After his twenty-minute audience with the Queen, he was "absolutely besotted" with her according to his daughter-in-law Esca Hayek. Hayek said a year later that he was "amazed by her. That ease and skill, as if she'd known me all my life". The audience with the Queen was followed by a dinner with family and friends at the [[Institute of Economic Affairs]]. When later that evening Hayek was dropped off at the [[Reform Club]], he commented: "I've just had the happiest day of my life".{{sfn|Ebenstein|2001|p=305}}

In 1991, President [[George H. W. Bush]] awarded Hayek the [[Presidential Medal of Freedom]], one of the two highest civilian awards in the United States, for a "lifetime of looking beyond the horizon".<ref name=":13" />

=== Personal life ===
[[File:Neustifter Friedhof - Friedrich August Hayek (cropped).jpg|thumb|Hayek's grave in Neustifter Friedhof, Vienna]]

In August 1926, Hayek married Helen Berta Maria von Fritsch (1901–1960), a secretary at the civil service office where he worked. They had two children together.<ref>Ebenstein, p. 44.</ref> Upon the close of World War II, Hayek restarted a relationship with an old girlfriend, who had married since they first met, but kept it secret until 1948. Hayek and Fritsch divorced in July 1950 and he married his cousin{{sfn|Ebenstein|2001|p=169}} Helene Bitterlich (1900–1996)<ref>Ebenstein, p. 169.</ref> just a few weeks later, after moving to Arkansas to take advantage of permissive divorce laws.<ref name="Ebenstein, p. 155">Ebenstein, p. 155.</ref> His wife and children were offered settlement and compensation for accepting a divorce. The divorce caused a scandal at LSE, where some academics refused to have anything to do with Hayek.<ref name="Ebenstein, p. 155"/> In a 1978 interview to explain his actions, Hayek stated that he was unhappy in his first marriage and as his wife would not grant him a divorce he had taken steps to obtain one unilaterally.<ref>{{cite AV media |url=https://www.hayek.ufm.edu/index.php?title=Armen_A._Alchian |title=Armen A. Alchian interviews Friedrich A. Hayek (Part I) |time=48:50 |website=The Hayek Interviews |access-date=31 August 2021 |archive-date=31 August 2021 |archive-url=https://web.archive.org/web/20210831154644/https://www.hayek.ufm.edu/index.php?title=Armen_A._Alchian }}</ref>

For a time after his divorce, Hayek rarely visited his children, but kept up more regular contact with them in his older years after moving to Europe.{{sfn|Ebenstein|2001|p=169}}{{sfn|Ebenstein|2001|p=297}} Hayek's son, [[Laurence Hayek]] (1934–2004) was a distinguished microbiologist.<ref>{{Cite web|url=http://www.independent.co.uk/news/obituaries/laurence-hayek-550426.html|title=Laurence Hayek|date=7 September 2004|website=The Independent}}</ref> His daughter Christine was an [[Entomology|entomologist]] at the [[British Museum of Natural History]],<ref name = "Christine von Hayek">{{cite web |title= Christine Maria Felicitas von Hayek, entomologist |url= https://species.wikimedia.org/wiki/Christine_Maria_Felicitas_von_Hayek |publisher= [[Wikispecies]] |access-date= 27 December 2023 |archive-date= 21 September 2024 |archive-url= https://web.archive.org/web/20240921023238/https://species.wikimedia.org/wiki/Christine_Maria_Felicitas_von_Hayek |url-status= live }}</ref> and she cared for him during his last years, when he had declining health.{{sfn|Ebenstein|2001|p=297}}{{sfn|Ebenstein|2001|p=316}}

Hayek had a lifelong interest in biology and was also concerned with ecology and [[environmental protection]]. After being awarded his Nobel Prize, he offered his name to be used for endorsements by [[World Wide Fund for Nature|World Wildlife Fund]], [[National Audubon Society]], and the [[National Trust for Places of Historic Interest or Natural Beauty|National Trust]], a British conservationist organisation. Evolutionary biology was simply one of his interests in natural sciences. Hayek also had an interest in epistemology, which he often applied to his own thinking, as a social scientist. He held that methodological differences in the social sciences and in natural sciences were key to understanding why incompetent policies are often allowed.<ref>{{Cite journal|last=Beck|first=Naomi|date=December 2009|title=In Search of the Proper Scientific Approach: Hayek's Views on Biology, Methodology, and the Nature of Economics|url=https://www.cambridge.org/core/journals/science-in-context/article/abs/in-search-of-the-proper-scientific-approach-hayeks-views-on-biology-methodology-and-the-nature-of-economics/8D6B282B219FB3A72FCFDD2AA2872D6E|journal=Science in Context|language=en|volume=22|issue=4|pages=567–85|doi=10.1017/S0269889709990160|pmid=20509429|s2cid=46364934|issn=1474-0664|access-date=28 April 2021|archive-date=28 April 2021|archive-url=https://web.archive.org/web/20210428003307/https://www.cambridge.org/core/journals/science-in-context/article/abs/in-search-of-the-proper-scientific-approach-hayeks-views-on-biology-methodology-and-the-nature-of-economics/8D6B282B219FB3A72FCFDD2AA2872D6E|url-status=live}}</ref>{{sfn|Ebenstein|2001|p=225}}

Hayek was brought up in a non-religious setting and decided from age 15 that he was an agnostic.{{sfn|Ebenstein|2001|p=13}}

Hayek died on 23 March 1992, aged 92,  in [[Freiburg, Germany|Freiburg]], Germany, where he had lived since leaving Chicago in 1961. Despite his advanced age by the 1980s, he continued to write, even purportedly finishing a book, ''[[The Fatal Conceit]]'', in 1988, although its actual authorship is unclear.<ref name=":3">{{cite news|url=https://mises.org/library/biography-f-hayek-1899-1992|title=Biography of F.A. Hayek (1899–1992)|author=Peter G. Klein|newspaper=Mises Institute|date=18 August 2014|access-date=23 March 2018|archive-date=21 September 2024|archive-url=https://web.archive.org/web/20240921024144/https://mises.org/articles-interest/biography-f-hayek-1899-1992|url-status=live}}</ref><ref>{{Cite web |date=22 June 2008 |title=Liberty – The Fatal Deceit |url=http://libertyunbound.com/archive/2005_03/ebenstein-deceit.html |access-date=2022-06-01 |website= |archive-url=https://web.archive.org/web/20080622201757/http://libertyunbound.com/archive/2005_03/ebenstein-deceit.html |archive-date=22 June 2008 }}</ref>
He was buried on 4 April in the [[Neustift am Walde]] cemetery in the northern outskirts of Vienna according to the Catholic rite.{{sfn|Ebenstein|2001|p=317}}