QUESTION 1:

The two types of demands for economic security are limited and absolute security. The limited type of security can be achieved for all. On the other hand, absolute security is not achievable in a free society. Hayek (2007) says that absolute security is not up for offer except under some circumstances. One of these is the case of judges. They are given total independence. He says that the first type of security is against severe privacy in physical terms. The second type accommodates a certain standard life. Further, on, he says that if a society has self actualized; that is, it has acquired the first type of security, it should be able to guarantee to all. However, the freedom of the general public should not be jeopardized.

In light of the security matters, the author also wishes the country to provide for individuals especially on the common hazards of life. For main goals of policy to be attained, the author also says that enough security against stern privation and causes that can be avoided (both efforts that are misdirected and disappointments that follow) be reduced. Working towards this should bear fruits instead of bringing down individual freedom. This means that outside market security is paramount. In addition, competition should not be tampered with. However, he states that for freedom to be preserved, there is need for some kind of security. The reason behind this is that some people can put up with the risk which comes about because of freedom, however, it should be noted that they can put up with the risk as long as it is sizeable. Limited security in this case draws a line where it affects and where it does not. For instance, the labor market is totally independent of limited security. This type of security provides for safety, health care, as well as minimum wages. On the side of absolute security, selected few individuals are protected.