Question

On what grounds did the Austrian-born economist Friedrich A. Hayek reject the New Deal state?

a. In all its details, he thought it indistinguishable from National Socialism.
b. The American consumer economy, he thought, lacked the complexity that required economic planning.
c. He was convinced that even the best intentioned government planning efforts would threaten individual liberties.
d. He reasoned that economic planning during the war had almost cost the United States its victory.
e. He worried that the New Deal would eventually assist African-Americans in achieving equality.

Answer 1

The correct answer is letter C.

Explanation: Liberal economist Friedrich Hayek, identified in early 1929 that the economic boom would end. And it was right. The result of this state intervention in the economy was the crash of the New York Stock Exchange in October 1929, which, until today, is mentioned by the enemies of liberty as the fault of "capitalism."