Hayek and Popper on Piecemeal Engineering and Ordo-Liberalism

Abstract

This chapter examines how Hayek and Popper utilized the approach of piecemeal engineering to integrate positive State action into their liberal thoughts, which engendered a rebirth of liberalism in the twentieth century. Hayek and Popper sought to legitimize positive State actions and planning through piecemeal engineering, despite their opposition to planning in general. They defended a positive State role via piecemeal engineering for the achievement of distinct and incompatible ends: Hayek supported positive State actions for the purpose of ensuring the proper functioning of free market capitalism, whereas Popper did so with the intent of achieving social justice. This chapter also focuses on the respective liberal thoughts of Hayek and the Austrian School and Walter Eucken (the founding father of ordo-liberalism) at the Freiburg School (FS). Hayek and Eucken supported the use of State power to establish and maintain an efficient ‘free’ market economy via a legal and institutional framework, while simultaneously opposing State intervention in the private spheres of individuals. They also shared somewhat similar attitudes towards democracy.