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By Hayek’s standards, the type of financial economy portrayed in the article, The Hand on the Lever, by Nickolas Lemann, I contend is still capitalism. This paper will examine how and why I believe it does so. Perhaps some may not interpret our current day financial economy as the purest form of capitalism, yet in essence it is capitalismnonetheless and Hayek’s standards holds true today.

First let us define Hayek’s theory of economics, he believed less government intervention meant more economic freedom (free markets) and when people are free to choose, (using knowledge as a tool), the economy runs more effectively. Hayek also believed that an unintentional consequence of human actions causes a spontaneous reaction, negative or positive.

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