Reading Questions

I am currently reading The Road to Serfdom by F.A. Hayek, one of the more important political/economic treatises since World War II I think.  (It is certainly up there if not that high.)  In the book, Mr. Hayek is arguing against socialism of the era in the form of an entirely or mostly planned economy which he saw coming to power in England and already holding power in Nazi Germany, Fascist Italy and Communist Russia.

Essentially, planned economies take away individual liberty according to his argument.  I am not here to analyze that part though. Instead, what if we are going towards a planned economy regardless of our politics through something that Hayek may not have foreseen?  The new thing is technology and this advent of big data and wearable technology etc.  We are slowly gaining the ability to get data on practically every moment of our days.  I do not think that Hayek foresaw such an occurrence while writing and I wonder what he would have to say.

In short: are we building ourselves into a planned society without even intending it?

Regardless of what we do economically/politically, technology is becoming wearable, mobile and ubiquitous.  Ubiquitous technology generally tends towards ubiquitous data as can be seen with our “Big Data” issue coming up and as the smart city movement gains momentum towards measuring everything.

The problem with all of this is it is data from measurable things only, technology cannot make value judgments it can only take in what it is told to take in and focus on that information in whatever measurable way it is told.  There are severe limitations in that.  This ability to change values was one of the strengths of money, an individual could use their money in ways that aligned with their individual values (thanks, Hayek!),  instead of being limited to what was deemed “worthy” money could be used in multiple different ways by different individuals because the money earned did not already have a value judgment built into it and was not limited in measuring like data is when it is being gathered. Technology and data, instead can only focus on view things and generally that information is used to increase “efficiency.”  So, the information gathered, especially in reference to time, can generally be used to increase productivity but it becomes harder to use it in other ways.

So, in essence, technology measures productivity and nothing else.

The problem is, as humans, sometimes the lack of productivity is the most productive thing to do.  Meditation as a contemporary example, the day of rest as a biblical one, sleep as a fact of life one. Also, productivity, as we all know is NOT necessarily quality.  Producing millions of cheap plastic chairs may be producing “more” in a measurable way but it is not the same as a craftsman finding wood, carving it and putting it together into a rocking chair on their own.  Money helps us show that difference through the different price tags I believe.  But, our data, as compared to time, would still probably find it more “efficient” to produce the plastic chairs instead and that would lead to a higher profit margin.  I would argue that, as technology becomes more ubiquitous, these sorts of value judgments are going to end up happening without us necessarily realizing it.  Meaning we could end up with a planned society based on efficiency without ever actually intending it.  Especially as we slowly let our human ability to decide value languish thanks to those decisions being made outside of ourselves.

I simply wonder, what does Hayek have to say in response to this?

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