Chapter 3, Individualism and Collectivism Summary and Analysis

Hayek describes the concept of socialism as a confusion that society has. Society can see socialism as an abstract concept: the ideals of equality and security. However, it can also mean a tangible practice, a method implemented to abolish privatization and distribute the profits of work. By a society implementing socialist methods, the individual entrepreneur is replaced by a planning entity, in a process viewed as the only rapid way to achieve equal distribution. The policy of socialism is that the ends justify the means: some people accepted this and others did not.

This, according to Hayek, is the cause of the confusion regarding the concept of socialism. Directing the means for production so that the resulting output is for "use" requires the use of planning. Planning is also required to achieve an equal distribution...