Hayek praised the striking down of New Deal legislation as protecting freedom

Evidence

In a normal situation, Hayek believed that judicial review would be sufficient to prevent government overstepping the margin of freedom provided by the constitution – just as the US Supreme Court had done when, in ‘its most spectacular decision’, it had ‘saved the country from an ill-conceived measure’ by striking down President Roosevelt’s New Deal National Recovery Administration Act. In Chile, by contrast, he saw a crisis that could only be averted by a ‘liberal dictator’. — Jessica Whyte, The Morals of the Market, 361

Categorization

  • XREF: Directly relevant to the reader’s austerity/neoliberalism reading: Hayek’s celebration of court nullification of the NRA anticipates the use of constitutional rights doctrine to block redistributive economic policy. — connects to: Hayek ranked freedom above democracy and would temporarily sacrifice democratic procedure for it — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 2152; The New Deal did not alter the structure of the American economy

Broader Connections