Friedrich Hayek Quotes

'Perfect competition' is considered both the ideal and the default state in Economics 101. So-called perfectly competitive markets achieve equilibrium when producer supply meets consumer demand.

If you look across the economy, if you have multiple players in an industry, you have more customization, more innovation, greater choice for consumers. The more you have consolidation, the less likely you are to invest in innovation. It becomes all about driving down cost and mass production. And that's not good for innovation in an industry.

The Internet moves us closer to "perfect information" on markets. Individuals and companies alike can buy and sell across borders and jurisdictions wherever they find the best match of supply and demand.

There isn’t any significant difference between the various brands of whiskey, or cigarettes or beer. They are all about the same. And so are the cake mixes and the detergents, and the margarines… The manufacturer who dedicates his advertising to building the most sharply defined personality for his brand will get the largest share of the market at the highest profit.

I find it quite useful to think of a free-market economy - or partly free market economy - as sort of the equivalent of an ecosystem. Just as animals flourish in niches, people who specialize in some narrow niche can do very well.

Marshall's crime is to pretend to handle imperfect competition with tools only applicable to perfect competition.

A box of new crayons! Now they’re all pointy, lined up in order, bright and perfect. Soon they’ll be a bunch of ground down, rounded, indistinguishable stumps, missing their wrappers and smudged with other colors. Sometimes life seems unbearably tragic.

There is a sort of economy in Providence that one shall excel where another is defective, in order to make men more useful to each other, and mix them in society.

I begin with confession not in order to feel miserable, rather to call to mind a reality I often ignore. When I acknowledge where I stand before a perfect God, it restores the true state of the universe. Confession simply establishes the proper ground rules of creatures relating to their creator.

There is a significant moral difference between a person who commits a violent crime and a person who tries to cross a border illegally in order to put food on the family table. Such migrants my violate our laws against illicit entry, but if that's all they do they are trespassers, not criminals. They deserve to have their dignity respected.

In the market economy the price that is offered is counted upon to produce the result that is sought.

Perfect discipline requires recognition of infallibility. Infallibility requires the observance of discipline.

Until the Great Depression, most economists clung to a vision of capitalism as a perfect or nearly perfect system. That vision wasn’t sustainable in the face of mass unemployment, but as memories of the Depression faded, economists fell back in love with the old, idealized vision of an economy in which rational individuals interact in perfect markets.

During the socialist period, the government became too big. That created a crowding-out effect in the private economy, and it gave everybody the need to pay more taxes in order to finance this big government. We are against big government. We want a smaller and more efficient government.

With respect to love we speak continually about perfection and the perfect person. With respect to love Christianity also speaks continually about perfection and the perfect person. Alas, but we men talk about finding the perfect person in order to love him. Christianity speaks about being the perfect person who limitlessly loves the person he sees.

The perfect way is only difficult for those who pick and choose. Do not like, do not dislike; all will then be clear. Make a hairbreadth difference and heaven and earth are set apart; if you want the truth to stand clear before you, never be for or against. The struggle between 'for' and 'against' is the mind's worst disease.

There is a charm, even for homely things, in perfect maintenance.

The preamble to the Constitution states: "We, the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquillity, provide for the common defence, promote the general welfare..." It doesn't say "guarantee the general welfare." And it certainly doesn't say "give welfare benefits to all the people in the country who aren't doing so well even if the reason they aren't doing so well is because they're sitting on their butts in front of the TV".

I think the Chinese are really amateurs when it comes to running markets.

You have to have great design to be competitive in today’s markets.

Differences are not intended to separate, to alienate. We are different precisely in order to realize our need of one another.

I disagree with the followers of Marx and those of Adam Smith: the reason free markets work is because they allow people to be lucky, thanks to aggressive trial and error, not by giving rewards or "incentives" for skill.

The universe is completely balanced and in perfect order. You will always be compensated for everything that you do.

Prayer is not getting things from God. That is a most initial stage; prayer is getting into perfect communion with God: I tell Him what I know He knows in order that I may get to know it as He does.

I think that as human beings, we quite naturally take for granted what is similar among human beings and, then, pay attention to what differentiates us. That makes perfect sense for us as human beings.