Chapter 16, Conclusion Summary and Analysis

The purpose of the book, according to Hayek, is to point out the problems that Europe experienced from the beginning of the 1900s. Hayek examines the conditions that led to the development of socialism and fascism in response to a rejection of the laissez faire philosophy of the British. What happens after the war depends on how the world uses the opportunities it has at the end of the war. The conclusion of the war frees them from the mistakes of the past and gives them a chance to start over, once they realize the mistakes of the past.

Hayek's conclusion elucidates his theory of how individual freedom is the only progressive policy; and, like the 19th century, this policy of freedom is equally relevant today.