The Road to Serfdom by Friedrich Hayek is a frequently misunderstood book. And as a foundational text of classical liberal thought in the 20th century, it must be properly and deeply considered. This, especially at a moment when those on the right are engaged in a fierce battle of ideas with one another.

In Road, Hayek is not making a “slippery slope” argument: Any deviation from a purist, free-market economy—even a smidge of government planning or the most minor action of intervention—begins an inexorable march toward socialism, “the abolition of private enterprise, of private ownership of the means of production,” and a central planning body replacing the entrepreneur. In the wonderful Hayek: A Life, 1899–1950, which came out last year, biographers Bruce Caldwell and HansJoerg Klausinger call this misreading “the criticism that refuses to die” and one “that constitutes in our opinion the most important misreading of the book.” All of which is unfortunate since to present or to believe this interpretation makes Road seem utterly ridiculous on its face. The book was published in 1944 and even large welfare states with high taxes and an extensive regulatory regime have managed over subsequent decades, obviously, to also keep those factors Hayek cites as central to a free economy.

Even Hayek’s clear thoughts on the matter—while he never defined the exact meaning of the “comprehensive system of social insurance,” it hardly seems like advocacy of laissez-faire— haven’t prevented some on the left and right from continuing to bandy the notion. For the former, the interpretation serves to undermine the seriousness of the book. For the latter, it helps them make an absolutist and alarmist argument about the proper role of government in the economy. (The top spots in the 2022 Index of Economic Freedom are filled with social democracies: the Netherlands, Finland, Denmark. The US is no. 25.)

Again, what did Hayek think? This from Caldwell and Klausinger: “For Hayek, what was most important was the freedom to enter and exit trades, to produce goods, and to buy and sell at prices that agreed upon by the parties engaged in a transaction to be preserved.” To Hayek, the aforementioned features are the beating heart of a competitive capitalist system, albeit one compatible with “an extensive system of social services.” For more on Hayek’s life and why his ideas as relevant today as ever, please check out my recent podcast chat with Caldwell.

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