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Let's consider first Hayek's claim that prices in free market capitalism do not give people what they morally deserve. Hayek's deepest economic insight was that the basic function of free market prices is informational. Free market prices send signals to producers as to where their products are most in demand (and to consumers as to the opportunity costs of their options). They reflect the sum

total of the inherently dispersed information about the supply and demand of millions of distinct individuals for each product. Free market prices give us our only access to this information, and then only in aggregate form. This is why centralized economic planning is doomed to failure: there is no way to collect individualized supply and demand information in a single mind or planning agency, to

use as a basis for setting prices. Free markets alone can effectively respond to this information.
It's a short step from this core insight about prices to their failure to track any coherent notion of moral desert. Claims of desert are essentially backward-looking. They aim to reward people for virtuous conduct that they undertook in the past. Free market prices are essentially

forward-looking. Current prices send signals to producers as to where the demand is now, not where the demand was when individual producers decided on their production plans. Capitalism is an inherently dynamic economic system. It responds rapidly to changes in tastes, to new sources of supply, to new substitutes for old products. This is one of capitalism's great virtues. But this responsiveness

leads to volatile prices. Consequently, capitalism is constantly pulling the rug out from underneath even the most thoughtful, foresightful, and prudent production plans of individual agents. However virtuous they were, by whatever standard of virtue one can name, individuals cannot count on their virtue being rewarded in the free market. For the function of the market isn't to reward people for

past good behavior. It's to direct them toward producing for current demand, regardless of what they did in the past.
This isn't to say that virtue makes no difference to what returns one may expect for one's productive contributions. The exercise of prudence and foresight in laying out one's production and investment plans, and diligence in carrying them out, generally improves one's odds. But

sheer dumb luck is also, ineradicably, a prominent factor determining free market returns. And nobody deserves what comes to them by sheer luck.

I had been journeying to and fro on the face of a fine broad bit of English earth, seeking what wages I could earn, what work I could get, and what facts I could devour. I found, I got, I devoured, every morsel which came in my way. I read, marked, learned and inwardly digested, as the prayer book says somewhere, all I could lay my hands or ears or eyes on. At the same time I was taking in a

supply of facts which would not be digested—tough facts about the land and the labourer, that accumulated and lay within my mind, heavy as a lump of lead, and hard as a stone. No matter what I did, whether I was working with my hands or my head, that mass of indigestible facts was always in the background, worrying and bothering me. I got no peace; it worried and bothered me more and more as

each year went by.

I thought fit to… explain in detail in the same book the peculiarity of a certain method, by which it will be possible… to investigate some of the problems in mathematics by means of mechanics. This procedure is… no less useful even for the proof of the theorems themselves; for certain things first became clear to me by a mechanical method, although they had to be demonstrated by geometry

afterwards… But it is of course easier, when we have previously acquired, by the method, some knowledge of the questions, to supply the proof than it is to find it without any previous knowledge.

I have an expectation that there’ll be a cooling in the existing market. But as I say, our view that we absolutely maintain is that we’re bringing on-stream a section of the housing market that is undersupplied and that we don’t expect to see a dramatic drop in people’s housing values. [...] At the moment it’s cooling because we’re seeing potentially that easing off by meeting the fact

that we’re easing off a bit of demand. It’s not clear whether or not that will be sustained. We believe that if we want to make sure we’re addressing the issues we have, it is about addressing supply as well.

I preside over a government that is made up of three independent parties who have built consensus around the issues we will collectively pursue. The fact that we will work together collaboratively does not diminish the identities of those parties. There are a number of reasons why confidence and supply is a form of arrangement that will suit the needs of particular parties and why others will

prefer coalition. I have no trouble, and I do not question my role or authority simply by allowing a party to speak to that issue themselves.