Friedrich Hayek is often seen as the father of neoliberal economics. It’s not an unfair reading, and he was certainly no fan of the state. But what he really railed against was the epistemic arrogance of the planner who assumes that he can anticipate the future better than a local actor whose knowledge is much more fine grained. Although the Hayekian critique is usually applied to postwar Keynesian planners, today it is more germane to EU planners who think that by setting up rules they can make the future conform to the probability space that they want to see. As Paul De Grauwe put it beautifully, “This is like saying that if people follow the fire code regulations scrupulously there is no need for a fire brigade.”

Mark Blyth, Austerity, loc. 255