The Mont Pèlerin Society

- The founding in 1947 of the Monte Pean society was a pivotal moment in the revival of classical liberalism and the cause of freedom. By the end of the Second World War classical liberalism, often called free market capitalism had fallen into disfavor. The Great depression of the 1930s had shaken faith in markets and wartime economies saw increased government intervention. And when the war ended, collectivist policies were very much in vogue across Europe. The Austrian born British economist, Fri Kayak, decided to take the initiative to form a society of scholars and thinkers who could rally to the defense of classical liberalism. The idea was to energize liberalism, to reinvigorate it with new ideas that could address the problems of the post-war era. Hayek was based at the London School of Economics. He could see firsthand how socialist planning had become popular among British politicians and academics as well as the public. In 1944, Hayek published the book that made him world famous, the Road to Serfdom. In it, he talked about the dangers of socialism and state planning, and explained economic advantages and moral superiority of a free market. Hayek's underlying concern was the defense of freedom. Late in 1946, Hayek sounded out in writing some leading thinkers such as Carl Popper, the philosopher of science, but his idea for bringing together people who shared his view of the need to revitalize liberalism once he determined that there was sufficient interest in such a project. Invitations were sent out for a conference in Switzerland in April, 1947. They chose a relatively isolated location in the village of Mont Palon. There were 39 participants at all, all of them from Europe and the United States. About half were professional economists, but there were also historians, legal experts, political philosophers, and journalists. The conference agenda included 13 substantive sessions on topics ranging from free enterprise, the future of Germany, the dangers of Soviet communism and economic topics such as full employment, monetary reform, wage policy, taxation, and income distribution. The Montella in society's records are held at the Hoover Institution Library and Archives. The collection includes transcripts of the proceedings of the 1947 conference. We know from those documents that the discussions could be quite lively, and at times were contentious. This is hardly surprise. And after all, there were some pretty big egos gathered in that hotel conference room. Among the faces recognizable today, economists Milton Friedman, like Hayek, a future Nobel Prize winner, the Viennese economist, LRI Von MEUs, known for his legendary economic seminar and someone who had a marked influence on Hayek's career in the 1920s. And of course, Carl Popper, one of the most influential philosophers of the 20th century. Hayek was named founding president. He served as president until 1961. Over the years, as the membership grew, conferences of the Mount PO Society have met many times at many different locations around the world to exchange ideas about the principles and practices of a free society and the proper function of a market economy. I was honored to serve as president of the society from 2018 to 2020. The founding of the Montella in society epitomizes the triumph of ideas. It's a testament to the enduring power of intellectual endeavors in shaping the course of history.