SOURCE: “Understanding How Society Works,” in Hayek, His Contribution to the Political and Economic Thought of Our Time, Universe Books, 1985, pp. 15-40.

In the following excerpt, Butler provides an overview of Hayek's theories regarding the ways by which human beings come to form societies.

If we are to understand how society works, we must attempt to define the general nature and range of our ignorance concerning it.¹

Throughout his writings, Hayek points to a very common but mistaken belief about the way in which social institutions work. Put simply, this is the belief that since man has himself created the institutions of society and civilisation (such as the law, moral codes and social institutions), he must also be able to alter them at will so as to satisfy his desires or wishes.²

At first, this view seems very reasonable and rather encouraging. It suggests that if we want...