The German Social Market Economy

This book goes behind the success story of the Federal Republic of Germany since the Second World War to examine the principles underpinning the so-called "economic miracle." A.J. Nicholls examines the intellectual origins and history of the concept of the Social Market Economy, and its implementation in the difficult years of post-war devastation and recovery in West Germany. He traces the struggle of liberal economists to assert their ideas in the unfavorable circumstances from 1933 to 1948, when they triumphed with Erhard's implementation of a policy of liberalization following currency reform. The book analyzes the extent to which West Germany's economic success was due to Erhard's policies, and assesses his attempts to attain the goals of the social market up to 1963, when he became Federal Chancellor. Nicholls's study makes an important contribution to our understanding of the historical dynamics of the German economy and the political culture of the Federal Republic.

This volume is a collection of ten essays in which the authors assess the contribution of the German Ordo-liberals fifty years after the founders of the liberal movement in Germany stated their aims and objectives. The Ordo-liberals were a group of liberal economic and legal thinkers in the Federal Republic of Germany who came into prominence as a result of their influence on, and participation in, post-war economic policy in the Federal Republic when Ludwig Erhard was Minister for Economic Affairs and, later, Chancellor. They became known as Ordo-liberals because of their commitment to designing the appropriate economic and legal system. The essays in this volume consider not only the philosophy of the Ordo-liberals and their concept of the social market economy, but are also concerned with the contribution of the Ordo-liberals to more practical problems. The role of the public sector, the control of mergers and monopolies and the problem of sound money are among the topics considered, as well as the views of the Ordo-liberals on the international order. Many of the authors of these essays are well known internationally and they represent a wide range of contemporary liberal thought. The book will be warmly welcomed by students and scholars interested in economic philosophy and the place of liberalism in contemporary thought. The essays in this volume have been translated from the German in order to bring to the notice of a wider public the views of a group of German liberal economic and legal thinkers. This group of economists and lawyers came into prominence as a result of their influence on, and participation in, post-war economic policy in the Federal Republic of Germany when Ludwig Erhard was Minister for Economic Affairs and, later, Chancellor. Seventeen essays have been selected to express the thoughts of the group who, because of their commitment ot designing the appropriate economic and legal order system, became known as Ordo-liberals. The essays deal with a wide range of contemporary problems, such as the control of monopolies, the problem of the welfare state and the need for self-help, the role of the trade unions in industrial societies, as well as with the more philosophical question of whether capitalist and communist systems are moving closer together in their approach to economic problems to such an extent that they will eventually converge. This book will be of interest to all those who are concerned with contemporary problems both at practical and philosophical levels.

The social market economy has served as a fundamental pillar of post-war Germany. Today, it is associated with the European welfare state. Initially, it meant the opposite. Rebuilding Germany examines the 1948 West German economic reforms that dismantled the Nazi command economy and ushered in the fabled 'European Miracle' of the 1950s. Van Hook evaluates the US role in German reconstruction, the problematic relationship of Chancellor Konrad Adenauer and his economics minister, Ludwig Erhard, the West German 'economic miracle', and the extent to which the social market economy represented a departure from the German past. In a nuanced and fresh account, Van Hook evaluates the American role in West German recovery and the debates about economic policy within West Germany, to show that Germans themselves had surprising room to shape their economic and industrial system.

The essays in this volume have been translated from the German to bring to the notice of a wider public the contemporary views of a group of prominent German economists and lawyers who have all participated in the development of post-war economic policy in the Federal Republic of Germany.

This study presents the economic system of the Federal Republic of Germany, the Social Market Economy. Its aim is to describe the elements of this system that ensure its openness, dynamism, efficiency, stability and social balance. Taking Germany as an example, the study thus seeks to identify what is specifically German about its market economy system rather than to explain how a market economy system works.

The social market economy forms a fundamental theory of the market economy and an integrated economic and ethical theory of the economic order in which the political and societal conditions for the working of the market are included in the theory of the market economy. The social market economy is presented as a universal theory of the decisions to be made about the economic order in all cultures and is analysed in its basic theoretical foundations and in its application to the transition process from the planned to the market economy, particulary in the privatisation of socialised property in Russia and former East Germany. Leading German and Russian experts in the field as well as four classical texts present a systematic analysis of the social market economy from the point of view of economics, law, and ethics.

In this book, one of Germany's most influential economists describes his country's economy, the largest in the European Union and the third largest in the world, and analyzes its weaknesses: poor GDP growth performance, high unemployment due to a malfunctioning labor market, and an unsustainable social security system. Horst Siebert spells out the reforms necessary to overcome these shortcomings. Taking a broader view than other recent books on the German economy, he considers Germany's fiscal policy stance, product market regulation, capital market, environmental policy, aging and immigration policies, and its system for human capital formation as well as Germany's role in the European Union, including the euro zone. Germany's system of economic governance emerges as a common theme as Siebert examines why this onetime economic powerhouse is today a faltering giant. He argues that what Germany needs, above all, is a market renaissance; that it must throw off the shackles of its social welfare economy and of its hallmark consensus approach, whereby group-based cooperative decision-making has undermined competition and markets. In doing so he examines both the country's social security system and its labor market, including trade unions. His focus throughout is on Germany's present concerns, foreseeable future problems, and long-term policy issues. The definitive word on the postwar German economy to the present day, The German Economy is essential reading for economists and finance professionals as well as students, researchers, and others interested in modern-day Germany and its place and prospects at the heart of Europe.