... Norway hasn't 'mended' its policy - the consequences of its socialist policies should be by this time (60+ years) 'unpleasant'.
Hayek never gave a time frame.
You are simply
assuming that if it hasn't happened by now, it will not happen; you are drawing a completely speculative and arbitrary line beyond which
you claim that socialism succeeds in avoiding the problems spelled out in his book.
It is absurd to think that Norway disproves Hayek if you truly understand his argument concerning
how and
why collectivism trends toward tyranny.
Hayek argued that collectivism breeds
more collectivism chiefly because of the scarcity or resources and inherent inefficient allocation of those resources under collectivism. Norway has not hit that wall yet.
They have the means to put it off for quite a while. However, barring infinite resources, they will hit that wall. All social spending programs are ultimately ponzi schemes that are not sustainable. Norway has no magical ability to avoid that economic reality. It simply has the resources and the foresight to put off that cold reality.
Socialism hasn't been curtailed 'in time' so by now the evil results should be very apparent.
Again, you are ignoring the "how" and the "why". Collectivism inherently breeds more collectivism.
After a point, this centralization of power allows someone less then honorable to rise to power without adequate safeguards against an abuse of power or dictatorial power grab. This is precisely what happened with Hitler and has happened numerous times in socialist countries in the past.
Resources are ultimately scarce. There is always an inverse relationship between resources (inputs) and social spending (outputs) and that difference grows under collectivism. The available resources per capita are
much higher in Norway then in most other countries. That fact
can not be ignored or downplayed when comparing Norway's record to Hayek's thesis.
You are also assuming that a tyranny is not in place. This ignores the possibility of a
soft tyranny. While I personally don't know enough about Norway to say conclusively weather or not a soft tyranny is in place, the fact that they have high taxation is a
very strong indicator.
As the Sharon Statement says, "political freedom cannot long exist without economic freedom" and economic freedoms are the first to go under socialism. Natural Rights are incompatible with collectivism. Only positive rights are compatible with collectivism and positive rights are an illusion because any "right" that is dependent on the government is not a right, and any "right" that can be arbitrarily taken away by the government is not a right.
Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.
-C.S. Lewis