Hayek Landed in the Social Safety Net

It turns out that Friedrich Hayek did indeed apply for Social Security payments at the urging of billionaire Charles Koch.  Robert Wenzel verifies this via a FOIA request and defends Hayek’s decision to do so.


  1. Good point,as always,Ned. The problem we have with the employer is not really the employer’s fault or even the fault of the IRS, The problem we have is with the Accounting Profession. In other words most employees go forward on “tax advice” from their accountants. Of course most of the “advice” given is often non advice but opinions which often don’t hold the rule of law. If the accountant (who is really an agent of the tax authorities) tells the employer that the employee “must” have a Social Security number,file W2 and W4 forms plus other tax papers or if an independent contractor must file a 1099 then what is the employer to do? Most businessmen are terrified of the government and don’t want to “get into any trouble.” So the employer will throw the employee under the bus instead of making waves with the government. The upshot is that 90% 0f the accounting “profession” relies on the tax system for their livelihood. If the Tax System and the IRS ceased to exist tomorrow most of these “professional accountants” would be selling aluminum siding.

  2. Any Libertarian, who is financially able, should shun Social Security for the sake of consistency and for possible consistency if put into a position of debate or voicing opposition to the Social Security system. If a person,such as Frederich Hayek, who was well known among economic intellectual circles, during a debate is challenged on the fact that he receives Social Security (welfare) payments to hem and haw and try and explain the reasoning doesn’t really matter. What would matter,to neutral observers during a debate or discussion,was the intellectual dishonesty and hypocrisy of dealing in such a deceitful system like Social Security while at the same time receiving a payment from that same deceitful system. We as libertarians understand that our “contributions” extorted out of our paychecks and or payments as a businessman is nothing but stealing on the part of the government. But so are most taxes. If I were asked,during a debate or discussion on Social Security why I didn’t “take Payments” because I was only “getting back” what I had “put in?” I would say to my questioner that Social Security was a Communist idea and that I was not a practicing Communist. At that time I would look over at my questioner and ask : Are You?

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