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Limiting democracy and framing the economy: Hayek, Schmitt and ordoliberalism

ABSTRACT This article shows how Hayek’s understanding of ‘unlimited democracy’ was influenced by the work of Carl Schmitt. It goes on to make the case that ordoliberal ideas informed his suggestions for limiting democracy, made in response to Schmitt’s work. A number of authors have drawn attention to the influence of Schmitt on Hayek’s thought. Similarly, the ordoliberal relationship has been explored. However, these two influences must be read alongside each other in order to arrive at a full understanding of Hayek’s deep ambivalence towards democracy and how that developed from the 1930s through to the 1970s. Finally, the article makes the case that the decisive influence on Hayek’s later authoritarian turn was not the work of Schmitt, as certain authors have argued, but ordoliberal interpretations of dictatorship. It also argues that Hayek’s model constitution is informed by fundamental ordoliberal concerns.