1:46pm

Tue August 28, 2012
Planet Money

Hayek Would Oppose Tax Cuts Right Now

Paul Ryan has said that many of his economic ideas were inspired by the work of Friedrich von Hayek, an Austrian economist who rose to prominence in the middle of the 20th century.

But some of Hayek's ideas are contrary to what Ryan and other Republicans are pushing for.

Adam Davidson wrote about this recently. And we'll discuss the subject on today's podcast with Nicholas Wapshott, author of Keynes Hayek: The Clash That Defined Modern Economics.

In our conversation, Wapshott cited to two places where Hayek and Republicans disagree:

1. Taxes

Cutting taxes before you have money to do is very Keynesian ... not Hayekian. Hayek specifically said unless the government is in surplus, you shouldn't cut taxes, because that would only increase the debt.

2. Universal Health Care

Hayek also said a country should have:

A generous welfare system, a safety net for people who fall through the cracks, everyone should be provided with home, universal healthcare. This seems to be skipped over by all the people who call themselves Hayekians.

Copyright 2012 National Public Radio. To see more, visit http://www.npr.org/.