Hayek's Bastards

1. The Far Right's "New Fusionism" is Mutant Neoliberalism

The story of the American Right is often told as the fusion of the free market and religion. Yet recent decades have seen the rise of a new fusionism which turns to nature and science to defend naturalized inequality and the Social Darwinist virtues of competition.

Challenging narratives. The book argues that the rise of the Far Right is not a "backlash" against neoliberal globalization, but rather a "mutant strain" or "frontlash" within it. This "new fusionism" blends neoliberal economic policies with arguments from science and nature to justify inherent inequality. It seeks to re-establish hierarchies of gender, race, and culture, which neoliberals believe are rooted in genetics and tradition.

Antidote to equality. After the Cold War, neoliberals faced a new "Leviathan" in expanding public spending and social movements advocating for equality (civil rights, feminism, environmentalism). They sought an "antidote" to the "Equality Premise," turning to "nature" in matters of race, intelligence, territory, and money. This shift aimed to roll back social changes and reinforce a perceived natural order.

Volk Capital. This new strain of neoliberalism, crystallizing in the 1990s, uses scientific language to justify extending competitive dynamics deeper into social life. It assigns "intelligence averages" to countries, collectivizing and naturalizing the concept of "human capital" and adding overtones of national essences and character. This creates a discourse of "Volk capital," where cultural homogeneity is seen as a precondition for market stability.

2. Hayek's Legacy: From Cultural Evolution to "Atavistic" Egalitarianism

Socialists have the support of inherited instincts, while maintenance of the new wealth which creates the new ambitions requires an acquired discipline which the non-domesticated barbarians in our midst, who call themselves ‘alienated,’ refuse to accept although they still claim all its benefits.

Savanna story. Friedrich Hayek's later work introduced the "savanna story," positing that early humans lived in small, tribal groups. Over time, cultural evolution led to an "extended order" of market exchange, requiring individuals to become indifferent to those with whom they traded, sacrificing tribal solidarity for greater wealth and individuality.

Egalitarian threat. Hayek viewed demands for "social justice" as an "atavism," a regression to primitive, inherited instincts for group solidarity that threatened the complex, impersonal market order. He argued that adhering to a "game" that prioritized output over justice was essential for sustaining a growing world population. This perspective framed progressive movements as dangerous throwbacks.

Functional morality. While Hayek emphasized cultural evolution over genetic, his followers often blurred these lines. He saw religion and morality as "symbolic truths" that were important not for their inherent value, but because they "favor the practices that assist the multiplication of mankind" and facilitate the competitive order. This functional view of tradition allowed for its instrumentalization by those seeking to justify market hierarchies.

3. The Paleolibertarian Schism: Biology Over Culture in the Austrian School

The egalitarian revolt against biological reality is only a subset of a deeper revolt: against the ontological structure of reality itself, against the ‘very organization of nature’; against the universe as such.

Internal conflict. The 1960s' egalitarian challenges led to a significant schism within the neoliberal movement, particularly among Austrian economists. One faction, the "cultural Austrians" (aligned with Hayek), emphasized social learning and cultural adaptation. The other, "paleolibertarians" (led by Murray Rothbard), rooted human differences in biology and race.

Biology as bedrock. Rothbard, a key figure in the "new fusionism," vehemently condemned 1960s egalitarianism as an "antihuman" and "evil" "revolt against nature." Citing psychologist Richard J. Herrnstein, he asserted a "genetic basis for inequality of intelligence," declaring that "biology stands like a rock in the face of egalitarian fantasies." This view justified a rigid hierarchy of group traits and abilities.

Paleo alliance. Rothbard, along with Lew Rockwell, formed a "paleo alliance" with paleoconservatives, advocating for "ethno-cultural homogeneity" and "contractual neighborhoods" where private property rights would enable de facto segregation. This vision replaced birthright citizenship with "access rights" and democratic voting with shareholder meetings, aiming to dismantle the nation-state from below and re-establish a naturalized social order.

4. Mises's Ambiguous Stance Fueled Race Science in Libertarianism

It may be assumed that races do differ in intelligence and will power, and that, this being so, they are very unequal in their ability to form society, and further that the better races distinguish themselves precisely by their special aptitude for strengthening social cooperation.

Instrumentalizing Mises. While Ludwig von Mises condemned Nazi racial science and "racial polylogism," his writings contained ambiguities that paleolibertarians exploited. He conceded that "races do differ in intelligence and will power" and that this "throws light on various aspects of social evolution not otherwise easily comprehensible," leaving the door open for a "science of race."

Contradictory views. Mises's early work advocated for open borders and dismissed 19th-century race theories. However, by the 1940s, he conceded that "few white men who would not shudder at the picture of many millions of black or yellow people living in their own countries," partially legitimizing closed borders for non-white migrants. This shift provided a crucial opening for later racialized arguments.

Polyfacultive difference. Rothbard and Hans-Hermann Hoppe, Mises's intellectual heirs, amplified these ambiguities into a doctrine of "polyfacultive" racial difference. They used Mises's framework to justify unequal capacity, unequal achievement, and a "natural aversion of races to cohabitation," directly contradicting Mises's own assertions against "natural repulsion between the various races." This selective interpretation became foundational for their racialized politics.

5. The Ethno-Economy: Hard Borders as Rational Market Strategy

The fact is that a belief in free markets does not commit you to free immigration.

Nativism as economics. Peter Brimelow, a self-described "libertarian conservative" and founder of VDARE.com, mainstreamed anti-immigrant arguments by framing them in economic terms. He argued that "free trade tends to operate not as a complement for immigration but as a substitute," suggesting that robust cross-border trade could negate the need for mass migration, thus allowing for restrictionist policies.

Metamarket conditions. Brimelow introduced the concept of the "metamarket," arguing that free markets require a stable "societal framework" with "some degree of ethnic and cultural coherence." He contended that homogeneity reduces "transaction costs" and makes economic interactions more efficient, thereby making immigration a "metamarket issue" that could undermine the very conditions for capitalism's success.

Racialized efficiency. This "ethno-economy" views the nation as an efficient corporation, where human capital is intrinsically linked to cultural and, implicitly, racial endowment. Brimelow saw pro-immigration policies as driven by "white guilt" or the self-interest of elites seeking cheap labor, leading to a "racial spoils system" that distorted market principles and threatened the "genetic endowments" of white civilization.

6. Neurocastes: IQ as the Post-Industrial Social Sorting Mechanism

Something worth worrying about is happening to the cognitive capital of the country.

Meritocracy's dark side. Michael Young's dystopian novel The Rise of the Meritocracy (1958) envisioned a future where social hierarchy, or "neurocastes," was based on intelligence. This concept resonated in the 1990s, dubbed the "Decade of the Brain," amidst the rise of the "information economy" and "neurogenetic determinism," which posited that intelligence was a hardwired, genetically determined trait.

The Bell Curve's impact. Richard J. Herrnstein and Charles Murray's The Bell Curve (1994) became a touchstone for new fusionists. It argued that "cognitive stratification" was occurring in the U.S., with intelligent individuals clustering in elite enclaves, while low-intelligence populations multiplied, exacerbated by welfare and "low-skill" immigration. The book controversially linked racial differences in IQ to economic outcomes, suggesting Black Americans were paid what they "deserved."

IQ racism's policy implications. This IQ-centrism provided a "scientific" basis to oppose affirmative action and welfare programs, which were seen as futile attempts to level outcomes against immutable biological realities. Figures like Richard Lynn and Thilo Sarrazin extended these arguments globally, claiming IQ differentials explained national prosperity and advocating for immigration policies that screened for "cognitive capital" to prevent "dysgenesis."

7. Goldbugs: Profiting from Monetary Apocalypse and Moral Decay

People make bad money, and that money makes bad people.

Catastrophe capitalism. The "goldbug" movement, exemplified by Harry Browne's How to Profit from the Coming Devaluation (1970), predicted imminent social and economic collapse following the U.S. departure from the gold standard in 1971. This "Day X" marked a descent into "monetary socialism," where fiat money "debauched" currency and morality, funding welfare and foreign wars.

Survivalist entrepreneurship. Goldbugs like Ron Paul and Gary North blended investment advice with survivalism, urging readers to prepare for apocalypse by hoarding precious metals and creating "retreats." Their newsletters, like the Ron Paul Survival Report, cultivated mistrust of public authorities, predicting race wars and the collapse of the welfare state, and offering gold as the ultimate protection against systemic breakdown.

Metal morality. For goldbugs, gold was not just an asset but a "filament of morality." They argued that "fake money" (fiat currency) enabled "fake morality" (social justice, multiculturalism, diversity), leading to "collective corruption" and societal degradation. This "auripatriotism" prioritized a gold-backed monetary system over national sovereignty, viewing it as the "natural money" that would restore order and virtue after the inevitable collapse.

8. The Internet: A New Frontier for "Ideological Entrepreneurship"

The masses are always and everywhere indolent, dull, stupid, and incapable of developing their own (not preconceived) thoughts. For revolutionary changes to happen, one needs at first only a few non-conformist people who think for themselves and outside the box (Querdenker).

Circumventing gatekeepers. The internet provided a crucial platform for new fusionists to bypass mainstream media and directly reach audiences. Figures like Hans-Hermann Hoppe and Lew Rockwell recognized its potential to spread their "paleo" ideology, which had previously been confined to niche newsletters and small gatherings. This digital shift enabled a more rapid and widespread dissemination of radical ideas.

Vanguardism online. Hoppe, in particular, championed the internet as a tool for "ideological entrepreneurship," believing it could merge and motivate "non-conformist people" into a "revolutionary" movement. Websites like VDARE.com and Mises.org became hubs for "race realists" and anarcho-capitalists, offering packaged insights that challenged conventional wisdom and fostered an aura of esoteric knowledge.

Attention economy. The online environment fostered a culture of competitive speculation and alarmism, where "crash prophets" like Markus Krall gained hundreds of thousands of views. This "attention play" leveraged fear of impending collapse (e.g., "corona crash," "Great Reset") to sell gold, subscriptions, and a worldview that positioned the Far Right as the only ones prepared for the inevitable.

9. Volk Capital: Naturalizing Inequality for Global Competitiveness

The problem lies in them. They have some deficit. Something inside them stops them from earning as much money as we do.

Quantifying human worth. The concept of "Volk capital" emerged from the new fusionism, extending the idea of human capital to entire populations, often along racial or ethnic lines. This framework quantifies the potential and capacity of groups to perform economically, both historically and in the future, by assigning them average IQ scores.

Global hierarchy. Richard Lynn's The Global Bell Curve (2010) explicitly argued that IQ differentials provided the "conclusive answer to the question of global inequality." He claimed that "the problem lies in them" when describing poorer parts of the world, attributing their economic struggles to inherent "deficits" within their populations. This created a seductively simple global map of economic success and failure.

Policy implications. This naturalization of inequality informed policy proposals, particularly regarding immigration. Thinkers like Thilo Sarrazin and Erich Weede advocated for "designer immigration" policies that would screen for high-IQ individuals, arguing that "cultural heterogeneity is a burden" and that "mass immigration risks endangering traditions" and national prosperity.

10. The "Three Hards": Hardwired Nature, Hard Borders, Hard Money

The central government, the central banks, the central crony capitalist technology companies control you and have taken you to a Road to Serfdom in three ways. The central banks are in the business of debasing your currency, the central government is in the business of debasing your citizenship, and the crony capitalist technological powers are in the business of debasing your own personhood.

Core tenets. The "new fusionism" of the Far Right is characterized by three interconnected "hards": hardwired human nature, hard borders, and hard money. These tenets form a coherent ideological framework that justifies a hierarchical, exclusionary vision of society and economy.

Interconnected threats. The belief in "hardwired human nature" (e.g., innate intelligence differences, tribal instincts) underpins the need for "hard borders" to maintain ethno-cultural homogeneity and prevent "dysgenesis." Both are seen as essential for preserving the "metamarket" conditions necessary for capitalism. "Hard money" (e.g., gold standard) is advocated to constrain state power, prevent "monetary socialism," and protect individual wealth from currency "debasement."

Unified opposition. This framework unites opposition to various forms of "collectivism":

• Egalitarianism: Seen as a "revolt against nature."
• Mass immigration: Viewed as a threat to cultural and genetic capital.
• Fiat currency: Perceived as a tool for state expansion and moral decay.
  This holistic critique positions the Far Right as the defender of a natural, free, and virtuous order.

11. Beyond Backlash: The Far Right as a "Frontlash" within Global Capitalism

Many supposed disruptors of the status quo are agents less of a backlash against global capitalism than a frontlash within it.

Rebalancing the portfolio. The Far Right's rise is not a rejection of global capitalism but a "frontlash"—a rebalancing of its portfolio in times of uncertainty. This involves a "flight to safety" in assets like gold and a redefinition of "quality" in terms of racial homogeneity and high IQ. It's a strategic shift, not a liquidation of capitalist principles.

Entrepreneurial alarmism. Figures like Javier Milei, Nayib Bukele, and the Bolsonaro family exemplify this "ideological entrepreneurship," leveraging global economic crises to promote eccentric yet coherent forms of politics. They combine economic shock therapy with social conservatism and authoritarianism, often paying homage to neoliberal forefathers while presenting themselves as radical disruptors.

New forms of control. The "new fusionism" seeks to adapt capitalism to perceived biological and cultural realities, often through authoritarian means. From Milei's opposition to abortion based on "different DNA" to Curtis Yarvin's dystopian vision of "virtualizing" unproductive "hominids" in VR, these ideas push for new forms of social control and exclusion, all framed within a market-driven logic.