The Daily Caller

The Daily Caller

George Soros: Wrong on Hayek [VIDEO]

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Sean W. Malone
Producer and Composer

On April 28th, George Soros visited the Cato Institute to be a part of a Book Forum panel on the works of Nobel Prize-winning Austrian Economist, Friedrich August von Hayek. Soros attended the London School of Economics during the early 1950s, when both Hayek and Soros’ mentor, Karl Popper, were teaching at the college. Surprisingly, Soros made several remarks during his speech at Cato that significantly misrepresented Hayek and his economic theories.

For instance, Soros’ opening remarks included the following:

“Hayek is generally regarded as the apostle of a brand of economics which holds that the market will assure the optimal allocation of resources as long as the government doesn’t interfere. It’s a highly formalized and mathematical theory whose two main pillars are the efficient market hypothesis and the theory of rational expectations. It’s usually called the Chicago School and it has come to dominate the teaching of economics in the United States. I refer to it as market fundamentalism.”

However, Hayek was not a “Chicago School” economist (although he did teach at the University of Chicago) and did not adhere to either the efficient market hypothesis or the theory of rational expectations as Soros claimed. Hayek was, in fact, a key member of the “Austrian School” of economics, in the tradition of his own mentor, Ludwig von Mises. Hayek’s own theories regarding the limits of knowledge necessarily rejected both of what Soros considered to be the “two main pillars” of “market fundamentalism”.

While the Chicago and Austrian Schools share many similarities, there are also many other substantial differences between their views of economics – particularly in the realm of methodology.

During the final Q&A session toward the end of the event, Soros’ fellow panelist, Bruce Caldwell, called him out on three of his major misunderstandings of Hayekian economic theory. See the video here [excerpted from Cato Institute footage]:

A few other observers have commented on Soros’ apparent confusion. Soros claims to have been highly influenced by Hayek in his formative years at the London School of Economics, but he has since focused much of his time and wealth on political advocacy against many of the types free-market policies supported by Hayek’s ideas.

After the event, The Daily Caller’s Chris Moody caught up with Mr. Soros and asked him a few questions about his previously friendly relationship with Charles & David Koch.

  • erisian

    While I can think of extremely few ways that I agree with Mr Soros, there is one fundamental concurrence: we are both Capitalists. You might also disagree with his political attitudes, and who/what he chooses to support with his monies, but deep down the man still supports a Capitalist system (he makes his money trading international capital doesn’t he?). To attack him on any grounds *other* than you disagree with his political beliefs (i.e. he contributes to the Socialist/Dumpocraps/Frogressives…) is to give credence to the Left’s demonization of the Koch brothers on exactly the same grounds.

  • nickel1951

    Soros will only be 81 this August and I am willing to bet that he isn’t in danger of having to submit to the ObamaCare death panels in the foreseeable future.
    While writing checks and providing funding is a strenuous exercise it is not that physically taxing, one could be expected to continue doing that easily into your nineth decade.
    Unfortunately for those who love freedom, he is likely to keep funding America’s betrayal for a very long time.

  • DANIEL CABRERA

    AAhh!! George Soros, very colourful fella indeed.

    Allow me – if I may – to say something about this guy and his relationship with the current anti-american adininstration, bette knows as the Obama Regime…or The Obama Experiment, if you will.

    THE WAY I SEE IT;
    _________________

    SO MANY CONSERVATIVE IDEAS AND PROPOSALS ARE CONSTANLY GIVEN TO THIS BALSTED ADMININSTRATION…AND THAY ARE THE ONES SAYING, ‘NO’

    You see, the liberal-democrat factions – actually – THE PRESIDENTIAL CONSORTIOUM (with Obama as the front-face) THEY ARE NOT….I repeat…THEY ARE NOT! INTERESTED TO KEEP OUR NATION STRONG…INSTED THEY WANT TO DESTROY HER!

    LET’S TAKE OUR COUNTRY BACK…OUR NATION IS IN DANGER

    THE OBAMA REGIME IS PULVERIZING OUR COUNTRY BIG TIME..isnt’ true?…YES?…or…NO?

    THE SO CALLED ‘PRESIDENT OBAMA’ IS A SOCIALIST-MARXIST / COMMUNIST / GLOBALIST MEGALOMANIAC CHARATER, HIRED BY THE CHICAGO MAFIA-STYLE MEGA-CORREUPTED POLITICAL MACHINERY NOW IN WASHINGTON (better known as THE OBAMA GANG)…A TERRORIST-FRENDLY ORIENTED / ANTI-AMERICAN PACK OF INDIVIDUALS WITH DESTRUCTIVE AGENDA AGAINST OUR AMERICAN SYSTEM…

    …TO THAT END THEY HAVE AN OPERATIONS-CHAPTER…A GROUP OF ANTI-CONSTITUTIONALISTS / ENEMIES OF THE PEOPLE / ENEMIES OF THE STATE…in others words…TRAITORS!… WHICH DICTATES THE NORMS AND GUIDELINES FOR THE AGENDA – ‘THE PRESIDENTIAL CONSORTIOUM’

    GEORGE SOROS IS ONE OF THE KEY-PLAYERS IN ‘THE PRESIDENTIAL CONSORTIOUM’

    NEW WORLD ORDER, THE SOROS-OBAMA CONNECTION
    ____________________

    THE LIBERAL-DEMOCRAT FACTIONS ARE A GROUP -(a local group/designed for this specific nation)- A FIFITH COLUMNIST ORGANIZATION WITH THE AGENDA TO DECIMATE THE AMERICAN SYSTEM.

    THEY ARE AN INFILTRATION FROM ‘THE NEW WORLD ORDER’.

    Here in brief, some points to take into consideration;

    A circle of individuals that want to dominate the entire planet …everyone under the tutellage and TOTAL CONTROL of one CENTRAL POWER,… where no nation has auto-control but just sould, must and WILL FOLLOW,… AND SO OBEY that CENTRAL POWER.

    The best way to start this is to ELIMINATE the potential THREAT,… a nation strong enough that can cripple this global-planetary CENTRAL COMMAND attempt…understand so far?

    OUR NATION IS THE ONLY ONE with that POWER, and so is the one to be NEUTRALIZE FIRST!…AND ONCE IS DOWN,…THE OTHERS WILL FOLLOW.

    GEORGE SOROS IS ONE OF THE KEY-PLAYERS IN ‘THE PRESIDENTIAL CONSORTIOUM’

    Care for a quick view?,…Just walk with me;

    Soros: China Will Lead New World Order
    Billionaire globalist warns Americans against resisting new global financial system

    Obama: Time Has Come For A New World Order
    September 25, 2009, 12:57 pm
    Filed under: Ahmadinejad, Barack Obama, Credit Crisis, DEBT, Dictatorship, Dollar, Economic Collapse, Economy, Fascism, Gadhafi, Globalism, Great Depression, Greenback, Inflation, Iran, Libya, Moammar Gadhafi, NWO, Nazi, New World Order, Nuke, Oppression, Stock Market, UN, US Economy, Wall Street, White House, World Bank, ban ki-moon, brazil, deflation, economic depression, economic world order, g20, global economy, global elite, global government, globalists, government assassination, hyperinflation, imf, internationalist, internationalists, obama, obama stimulus, stimulus, united nations

    Wednesday, November 11, 2009
    George Soros Calls for World Currency and New World Architecture (Order)

    George Soros is pushing a globalist agenda. Already profiting through the Obama administration with Brazilian oil investments, Soros calls for a “new world architecture,” which sounds like a fancy term for the unpopular new world order.

    In an op-ed written for Project Syndicate (a left-wing think tank), Soros says capitalism as we know it is dying. He uses the term state capitalism, no doubt a moniker for neo-communism, as the future for the world citing China as the shining example. Then he calls for a new Bretton Woods Conference (a post World War II conference that established the current international money structure) to “new international rules, including treatment of financial institutions that are too big to fail and the role of capital controls. It would also have to reconstitute the International Monetary Fund to reflect better the prevailing pecking order among states and to revise its methods of operation.”

    And there you have it in short.

    Now, whoever interested please feel free to investigate and research for and in details.

    CONSPIRACY THEORIES?….oh!..no-no-no,…WE ARE LIVING IT!

    It sucks!…isn’t it? “OBAMA and the DEMS are WRECKING THE USA”…are they not?

    LET’S TAKE OUR COUNTRY BACK!…OUR GREAT NATION IS IN DANGER…THINK NOV 2010 MID-TERM ELECTIONS AND 2012 PRESIDENTIAL ELECTIONS

    Take it from there.

    Daniel Cabrera
    Merrillville,Indiana

  • erick1740

    soros is an evil, senile old bastard. If only he would get his room in hell very soon.