Ordoliberalism

Ordoliberalism is an anti-socialist right-wing school of primarily German economic and social thought. It was a highly influential ideological wing of the Neoliberal Thought Collective starting with its prominent role in Mont Pelerin Society, alongside other Austrian and American neoliberals such as Milton Friedman, Gary Becker and Friedrich Hayek. Some prominent ordoliberal actors are Walter Eucken, Wilhelm Roepke, Alfred Müller-Armack, Alexander Rüstow, Franz Böhm and Ludwig Erhard.

As a specific form of neoliberalism it influenced general neoliberal theory and is responsible for formulating Ordoliberalism is an anti-socialist right-wing school of primarily German economic and social thought. It was a highly influential ideological wing of the Neoliberal Thought Collective starting with its prominent role in Mont Pelerin Society, alongside other Austrian and American neoliberals such as Milton Friedman, Gary Becker and Friedrich Hayek. Some prominent ordoliberal actors are Walter Eucken, Wilhelm Roepke, Alfred Müller-Armack, Alexander Rüstow, Franz Böhm and Ludwig Erhard.

As a specific form of neoliberalism it influenced general neoliberal theory and is responsible for formulating many aspects of German "social market economy" inscribed in political and economic structure of the European Union. Its basic contributions to general neoliberal outlook include: 1. An abandonment of laissez-faire to include a role of a strong state (as understood by Carl Schmitt) as a socially interventionist constructor of market society. 2. A need to "revitalize" society (Vitalpolitik, later understood by Michel Foucault as "Biopolitics"). 3. A need to make a new "scientific" foundation for liberal economics and conservative social philosophy so that they can challenge their enemies. 4. A need to take an active interest in modification of living environment of the working class as to neutralize its political power and previous modes of organization. 5. A need to organize society according to rules of entrepreneurship and competition. 6. A need to produce the theory which is capable to convincingly connect phenomena as diverse as fascism, Keynesianism, and communism as opposed to liberalism. 7. In early stages (due to post-war political climate) it also included a plan to control the influence of monopolies.

Ordoliberal ideology shares a general neoliberal view about perfect functioning of market mechanisms as long as there is a strong state, able to control collectivist, democratic or particularistic influences. If state is week, these interests can prevail, leading to state intervention in economy, which, according to ordoliberals, more or less inevitably, leads to totalitarianism.

In contrast to "market naturalism" of classical liberals, ordoliberals called for active protection and construction of market society by defending the market economy from its own natural consequences (destructive social effects which lead to politicization of society which results in eventual destruction of the market order). Instead of progressive democratization of state, ordo-neoliberal program proposes depoliticization of society through introduction of government as "market police" and comprehensive legal framework (producing "economic order" instead of governing economy). This also includes the complete independence of central banks so that they are insulated from social pressure and political control and commitment of central banks to monetary stability and low inflation, while fiscal policy, which implies balancing tax revenue against government expenditure and management of the affected populace, are the domain of the government. Response of European institutions (such as austerity measures, social repression and rejection of democratic decisions) to recent international economic crisis of capitalism was very much guided by these ordoliberal postulates.

Since contemporary neoliberal transformation of mainstream economics (neoclasical consensus) ordoliberal thought underwent many transformations, most notably a sort of pendant and revival in neoliberal New Institutionalism stemming from theory of rational choice and game theory. These contemporary "hybridizations" are based on a shared interest in social, anthropological, psychological and cultural frameworks which facilitate a smooth functioning of market society and open new horizons for praxis of crisis management. Many authors emphasize similarities between ordoliberalism and neoliberal social democracy, notably "third way politics" of Tony Blair's New Labor. ...more

Ordoliberalism Books

The Foundations of Economics: History and Theory in the Analysis of Economic Reality

Rebuilding Germany: The Creation of the Social Market Economy, 1945-1957

Globalists: The End of Empire and the Birth of Neoliberalism

Ordoliberalism, Law and the Rule of Economics

Social Market Economy Principles and Implementation: Economic Policy from A to Z

International order and economic integration

Germany's Comeback in the World Market: The German 'Miracle' Explained by the Bonn Minister for Economics

FairEconomy: Crises, Culture, Competition and the Role of Law (MPI Studies on Intellectual Property and Competition Law, 19)

The Making of Competition Policy: Legal and Economic Sources

More ordoliberalism books...

Lists

The Strong and the Free Economy by Werner Bonefeld

The New Way of the World by Pierre Dardot

The Birth of Austerity by Thomas Biebricher

The Politics of Free Markets by Monica Prasad

Re-Inventing Western Civilisation by Niklas Olsen

Ordoliberalism

47 books — 3 voters

A Brief History of Neoliberalism by David Harvey

Capital in the Twenty First Century by Thomas Piketty

Neoliberalism

140 books — 25 voters

Featured News & Interviews

Books to Celebrate Black History Month (and Read All Year-Round)

Read »

Quotes Tagged “Ordoliberalism”

“ The market economy is not everything. It must find its place in a higher order of things which is not ruled by supply and demand, free prices, and competition. It must be firmly contained within an all-embracing order of society in which the imperfections of and harshness of economic freedom are corrected by law and in which man is not denied conditions of life appropriate to his nature. ”
― Wilhelm Röpke, A Humane Economy: The Social Framework of the Free Market

0 likes