Abstract: The democratic peace hypothesis which states that democracies rarely or never go to war against one another and that democracies do not commit democide raises issues penetrating to the core of modern liberalism, classical and otherwise. If democracies are unique from other forms of government, as claims for their peacefulness towards citizens and one another suggest, then possibly the classical liberal and libertarian critique of democratic government needs re-examination. By separating liberal democracy from undemocratic states, the democratic peace hypothesis separates the classical liberal and libertarian critique of the state from a straight forward application to liberal democracy. The work of F. A. Hayek and Michael Polanyi holds the key to understanding the democratic peace, and thereby leads to rethinking the classical liberal and libertarian critique of politics. To jump ahead, democracies are spontaneous orders in Hayek’s sense of the term. Consequently democracies are not states in the usual sense, and often do not act like them.
