Intro:

Hayek's view on the democracy as a process by which people form opinions is used as a starting point to investigate two neglected problems in the theory of public choice and constitutional theory. From the perspective of the Austrian School of Economics, individual knowledge, entrepreneurs and policy failibila the views of minority plays an important role in the political competition. Starting from the observation that political views are a combination of theory and preferences, are introduced the concepts of falsification of public opinion expressed (the fact that people often avoid having to express their real attitude towards certain issues) and counterfeiting respectively popperiana (discovery of wrong opinions). Democratic constitutions may limit cases of falsification of public opinion expressed and that increases the possibility of discovering the wrong opinions. That's why Hayek argues that "the value of democracy lies in its dynamic aspects rather than the outcome of elections at some point."

Guest:

Bobby Van

The text to read:

Michael Wohlgemuth, "Democracy and Opinion Falsification. Towards a New Austrian Political Economy ".