The “Social Market Economy” and its Impact on German European Policy in the Adenauer Era, 1949-1963

2007 ◽  
Vol 25 (2) ◽  
pp. 68-85 ◽  
Author(s):  
Guido Thiemeyer

This article focuses on the economic aspects of German European policy in the 1950s and raises the question whether the economic system of the Federal Republic of Germany, “Soziale Marktwirtschaft” had any impact on the European policy of the West German state. It argues that Social Market Economy as defined by Ludwig Erhard influenced German European policy in certain aspects, but there was a latent contradiction between the political approach of Konrad Adenauer and this economic concept. Moreover, this article shows that West German European policy was not always as supportive for European unity as it is often considered.

Author(s):  
Harald Hagemann

The chapter deals with the development of the welfare state in the first three decades after World War II, in which the West German economy ran through a remarkable catching-up process. Economic policy in the new Federal Republic of Germany in that period was decisively shaped and influenced by the ordoliberal ideas of Walter Eucken and the Freiburg school and the principles of the social-market economy. Whereas Keynesianism of the Hicks-Samuelson neoclassical synthesis had already evolved into the dominant view in the academic sphere during the 1950s, it took until the 1966–67 recession for Keynesianism to find a late (and short) entry into German economic policy with the entry of the Social Democrats into government and their charismatic minister of economics, Karl Schiller.


Author(s):  
Marta Balcerek

After World War II the Federal Republic of Germany was forced to decide about its economic system, choosing between liberalism and collectivism. However, neither of the two systems was suitable for German society, so German legal power sought an intermediate solution, a doctrine which would be located halfway on a scale between the two above-mentioned extremes. The resulting solution was the ordoliberal concept of the social market economy, a new economic doctrine implemented by Ludwig Erhard, Economics Minister, later elected Chancellor. The social market economy has since grown in importance, as it was adopted by The European Coal and Steel Community in 1951, and by The European Economic Community in 1957, finally becoming the leading economic doctrine in Europe.


Author(s):  
Peter C. Caldwell

The social market economy was a first key term used in the formation of the Federal Republic of Germany, firstly to describe how a market economy (i.e. capitalism) could contribute to social order, and secondly to suggest that the market alone could not preserve social order but required social supplements. The term was initially associated with the self-described neoliberals (now known as ordoliberals), and justified a return to the free market. Even within this group, however, there were differences about how a market economy could be “social” and what kinds of measures were necessary to make capitalism compatible with social order and democracy. Beyond this group, Social Democrats also adopted similar ideas at the same time. Despite the intentions of the most economically liberal of the ordoliberals, the idea of a social market economy came to include extensive state intervention to preserve social order.


2018 ◽  
Vol 6 (1) ◽  
pp. 87-98
Author(s):  
Flavio Felice

Abstract What do we mean by “civil” and “civil society”? This paper attempts to describe a complex notion of “civil economy” in Sturzo’s theoretical perspective of the social market economy. According to this political theory, “civil” is not opposed to “market,” which is not opposed to “the political” (the state). Rather, instead of being the transmission belt between the state and market, civil is the galaxy in which we find also the market and the state (but not only), each with its own functions. This tradition – rooted in Christianity – was able to oppose both Nazi and communist totalitarianism, while many Catholics made an impossible attempt to exhume corporatism.


Author(s):  
Rolf H. Funck ◽  
Harry Böttcher ◽  
Jan S. Kowalski

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