ts, conflicts, even animosities (9). Human beings change and adapt to their environment more often than any other living species. Humans are always coming up with new ideas, plans and solutions to problems. Hayek put forward that knowledge is discovered only through a trial and error process involving many people. Hayek believed that we all hold various beliefs about objective facts due the many influences one has throughout their lives. Humans generate their ideas by use of deduction and analogy or likeness. Every individual for Hayek has some advantage over all others because the individual possesses unique information of which beneficial use might be made. (10) However use of the knowledge can be made only if the decisions depending on it are left to the individual and are made with the individual co-operation. Knowledge and initiative play an integral role in Hayek’s argument for the success of competition as a means of generating the most amount of wealth for the most amount people in society. Hayek recognized the power of free markets and he explained how a government might seek to regulate the market without distorting the power. To make the most of all these ideas they need to compete in society, were the ideas that are successful would survive and become common Knowledge. Similar in a way to the theory of evolution, knowledge that is weak will not succeed whereas strong ideas will blend with other strong ideas to become even better than the original idea. Hayek describes Knowledge discovery as evolutionary, but does point out that it is not he same as “the survival of the fittest” theory, in so far as all knowledge has value. So even the poorest mind can potentially acquire valuable knowledge that can be used to acquire wealth. Hayek also points out that truth and knowledge are different. He said that unrecognized knowledge is an entrepreneurial opportunity. (11) If an entrepreneur can convert u...
