Note: This document critiques neoliberalism not through personal attacks on Friedrich Hayek (1899-1992), but by examining how various historical flows - fascism, the Cold War, its end, the Lehman Shock - created conditions where neoliberalism's broad interpretations allowed winning sides to self-justify through compelling "narratives." The collapse of the Soviet Union was visible, but neoliberalism's promise to "preserve public goods without destroying them" remains difficult to understand, perhaps because those in winning positions have little motivation to change the rules.
The concepts of freedom, responsibility, and public good become clearer when understood through an ethical framework.
Hayek's Structural Claims vs. Reality
Hayek's argument structure:
Premise A: "Free market competition creates the most efficient and just society"
Premise B: "State intervention distorts markets and should be minimized"
Conclusion: "Small government and free markets create an ideal society"
However, reality shows us that for Premise A to hold true, all participants must have:
Sufficient education (to understand information and make judgments)
Basic health and livelihood guarantees (to participate in competition)
Legal protection (protection from fraud and exploitation)
Fair competitive environment (no monopolies or information gaps)
All of these require active state intervention.
The Logical Contradictions:
Contradiction 1: The Monopoly Problem - While claiming "market participants are rational," monopolies like Standard Oil emerge in reality. If truly rational, they shouldn't create monopolies, yet they actually eliminate competition to maximize profits.
Contradiction 2: Ignoring Vulnerability - Treating the exploitation of the socially vulnerable as "free choice." This isn't competition but one-sided exploitation.
Contradiction 3: Neglecting External Costs - Justifying acts that impose "costs not reflected in market prices" (like environmental destruction) onto third parties as free competition.
The Decisive Contradiction: Self-Reference Problem - While state intervention is needed to establish the preconditions for functional competition (education, welfare, legal systems), the theory denies this very state intervention. In other words, it negates the conditions necessary for its own theoretical foundation.
FAQ for 10-Year-Olds and Their Guardians
Q1: What is "freedom"? Does it mean we can do whatever we want?
A: Freedom doesn't actually mean "you can do anything." Let's think about this using cats as an example.
A stray cat might seem "free," but in reality, it desperately searches for food, can't get medical treatment when sick, and has no warm place on cold days. Meanwhile, a cat lovingly cared for at home receives meals at regular times, gets medical treatment when ill, and sleeps in a safe place. Which cat is more "free" and happy?
True freedom can only be realized when there's an environment where you can make choices with peace of mind. It's precisely because we have rules and agreements that everyone can live with security, and within that framework, we can make choices that reflect who we are.
Q2: What does "responsible freedom" mean specifically?
A: Responsible freedom means the freedom to act while considering how your actions affect other people and nature.
Let's think about a forest. In a forest, all living things support each other to survive. Trees produce oxygen, animals carry seeds to grow new trees. If one creature acts selfishly and destroys the forest, everyone suffers.
Human society is the same. When you play in a park and don't litter, it's because you're thinking about the next person who comes. This is the basic idea of responsible freedom.
Q3: What is "neoliberalism"? Why is it problematic?
A: Neoliberalism is the idea that "if the government does as little as possible and everyone competes freely, society as a whole will improve." But this way of thinking has major problems.
Problem 1: A system where only the strong win - Imagine in the cat world, only big, strong cats monopolize all the food, while small cats and sick cats get nothing to eat. The weak cats couldn't survive this way.
Problem 2: Shared resources get destroyed - What if one cat said "This park is mine!" and drove out all the other cats, then dumped garbage everywhere? The park would become dirty and unusable for everyone.
Problem 3: Contradictory logic - While saying "free competition is best," it actually needs rules (like education and laws) for competition to be fair, yet it denies the role of government in creating those rules.
Q4: Why is protecting the environment important?
A: The environment is like a "home" that we all share.
Imagine if in your family's house, one person made their room completely messy, threw garbage everywhere, and drew on the walls, but said "This is my freedom!" How would the other family members feel? They'd be very troubled, and ultimately even that person would have to live in a dirty house.
Earth is the same. Even if one country or company pollutes the environment, the effects spread worldwide. Clean air and water, and rich nature must be protected by everyone together, or no one will be able to enjoy them.
Q5: Why should education be available to everyone?
A: Imagine thinking of education as a "product" where only wealthy people can receive good education.
This is like saying in the cat world, "Only naturally big cats can learn hunting techniques." Small cats couldn't learn to hunt, so they'd always struggle to find food. And their kittens would face the same struggles.
But what if all cats could learn hunting techniques? The whole forest would become richer, and everyone could cooperate to create a better environment. Education is a vital system for bringing out everyone's potential and making society as a whole better.
Q6: Why are healthcare and welfare important?
A: Observe elephant families. In elephant herds, not just mother elephants, but grandmother and sister elephants all help raise the baby elephants together. When an elephant gets sick, everyone supports it and helps it walk. Even when grandmother elephants get old and walk slowly, the whole herd walks slowly so no one gets left behind.
Human society should be the same. Saying "it's your own responsibility" and abandoning people who get sick, become elderly and physically limited, or are born with health challenges is abandoning our companions.
Healthcare and welfare are systems of mutual support so all members of society can live with peace of mind. Even you, who are healthy now, might get sick someday or grow old. Having a system where society as a whole can support each other is important for everyone.
Q7: What does it mean to live in a country?
A: Living in a country is similar to being part of a big family.
In your home, your family probably makes rules together and lives while caring for each other. Everyone shares responsibilities like cleaning, cooking, and maintaining the house.
Countries are the same. Roads, schools, hospitals, and parks are things everyone uses. To maintain these, everyone needs to cooperate a little (paying taxes, following rules). When each person acts responsibly, we can create a society where everyone can live with peace of mind.
Q8: Is there anything we children can do?
A: Of course there is! There are many things you can do.
Start with familiar things:
Don't litter (protect the environment)
Don't bully friends, help friends in trouble (spirit of welfare)
Use library books carefully (value public resources)
Be kind to animals (compassion for living things)
Work hard at studying (develop your potential)
Why this matters: Even small actions become powerful when everyone accumulates them. Just like how one cat starting to groom itself eventually spreads to the whole group, your kind actions also spread to those around you.
Q9: Why do adults sometimes make wrong choices?
A: Adults aren't perfect either. Sometimes they get blinded by immediate benefits and make choices that aren't good in the long term.
For example, if animals living in a forest wanted to eat a lot right now and ate all the fruit at once, there would be nothing to eat next spring.
Reasons adults make mistakes:
They only think about immediate benefits and forget about the future
They assume "I'll be fine"
They oversimplify complex problems
They forget to think about other people
That's exactly why voices from young generations like you are important. Have the courage to say "Isn't that strange?" with a fresh perspective.
Q10: What can we do now to make the future better?
A: The most important thing is to take interest in various things and develop the ability to think for yourself.
Learn from nature: When you observe nature, you can see how everything is connected. Butterflies drink flower nectar, and in return carry pollen to make new flowers bloom. You can learn that these "mutually supportive relationships" are also important in human society.
Develop the habit of asking questions:
"Is this really a fair rule?"
"Are there people in trouble?"
"Isn't there an environmentally friendly way?"
"Isn't there a way for everyone to be happy?"
Try taking action: Start with small things and gradually expand your scope. Your actions might spread to your friends, then to their friends, and eventually lead to big changes.
Remember that you are the protagonists who will create the future. What you're learning and thinking about now will surely become the power to create a better society in the future. Just like nature and animals, let's work together to create a society where everyone can support each other.
Photo by Ihsan Adityawarman from Pexels: https://www.pexels.com/photo/close-up-photography-of-sleeping-tabby-cat-1056251/
Trgr KarasuToragara
https://independent.academia.edu/TrgrKarasuToragara
https://note.com/karasu_toragara