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This article is about the practical implementation of Ordoliberalism in Germany. For the political philosophy accompanying the system in Germany and elsewhere, see Ordoliberalism. For their economic system, see Freiburg School.

The Social market economy was the main economic model used in Western and Northern Europe during the Cold War era. It originated in West Germany, and it is known as Soziale Marktwirtschaft in German. An autarky is an economy that does no trade with the outside world, or an ecosystem not affected by influences from its outside, and relies entirely on its own resources. ... Dual economy is the existence of two separate economic systems within one region; common in the less developed countries, where one system is geared to local needs and another to the global export market. ... A gift economy is an economic system in which the prevalent mode of exchange is for goods and services to be given without explicit agreement upon a quid pro quo, or the concept of a favor for a favor in the Latin language. ... A market economy (aka free market economy and free enterprise economy) is an economic system in which the production and distribution of goods and services takes place through the mechanism of free markets guided by a free price system rather than by the state in a planned economy. ... A mixed economy is an economy that contains both private and public, or state owned (or controlled) enterprises. ... An open economy is an economy in which people, including businesses, can trade in goods and services with other people and businesses in the international community at large. ... Participatory economics, often abbreviated parecon, is a proposed economic system that uses participatory decision making as an economic mechanism to guide the allocation of resources and consumption in a given society. ... A planned economy is an economic system in which decisions about the production, allocation and consumption of goods and services are planned ahead of time, usually in a centralized fashion, though some proposed systems favour decentralized planning. ... The underground economy consists of all trade that occurs without detection by government so that commerce and income are not taxed. ... Anglo-Saxon capitalism (so called because it is largely practiced in English speaking countries such as Australia, the UK and the United States) is a capitalist macroeconomic model in which levels of regulation and taxes are low, and the quality of state services and social indicators are weak. ... The American System (also known as the National System[1]) is the economic philosophy that dominated United States national policies from the time of the American Civil War until the mid-twentieth century as the countrys policies evolved in a free market direction. ... It has been suggested that this article or section be merged with World economy. ... In anthropology, the hunter-gatherer way of life is that led by certain societies of the Neolithic Era based on the exploitation of wild plants and animals. ... Information economy is a loosely defined term to characterize an economy with increased role of informational activities and information industry. ... The term, originated by the Organization for Economic Cooperation and Development (OECD), describes nations of the Third World that have enjoyed rapid economic growth and can be described as middle-income countries. ... A palace economy is a system of economic organisation in which wealth flows out from a central source (the palace), eventually reaching the common people, who have no other source of income. ... This article is in need of attention. ... A transition economy is an economy which is changing from a planned economy to a free market. ... For other uses, see Capitalism (disambiguation). ... Historically, corporatism or corporativism (Italian corporativismo) is a political system in which legislative power is given to civic assemblies that represent economic, industrial, agrarian, and professional groups. ... Natural economy refers to a type of economy in which money is not used in the transfer of resources among people. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... A token economy is a system of behavior modification based on the principles of operant conditioning. ... Image File history File links Portal. ... According to ordoliberalism, the state must create a proper legal environment for the economy and maintain a healthy level of competition through measures that adhere to market principles. ... Economy redirects here. ... A common understanding of Western Europe in modern times. ... Northern Europe is marked in dark blue Northern Europe is a name of the northern part of the European continent. ... The Cold War was the protracted geopolitical, ideological, and economic struggle that emerged after World War II between the global superpowers of the Soviet Union and the United States, supported by their alliance partners. ...

In West Germany, the social market model was created and implemented by the Christian Democrat Ludwig Erhard, Minister of Economics under Konrad Adenauer's chancellorship and German Chancellor from 1963 to 1966. The Christian Democratic Union of Germany (CDU - Christlich Demokratische Union Deutschlands) is the largest conservative political party in Germany. ... Ludwig Erhard (February 4, 1897–May 5, 1977) was a German politician (CDU) and Chancellor of Germany from 1963 until 1966. ... Konrad Hermann Josef Adenauer (January 5, 1876 – April 19, 1967) was a conservative German statesman. ... 1963 (MCMLXIII) was a common year starting on Tuesday (the link is to a full 1963 calendar). ... 1966 (MCMLXVI) was a common year starting on Saturday (the link is to a full 1966 calendar). ...

The social market economy seeks a middle path between socialism and capitalism (i.e. a mixed economy) and aims at maintaining a balance between a high rate of economic growth, low inflation, low levels of unemployment, good working conditions, public welfare and public services by using state intervention. Important figures in the development of the concept include Franz Oppenheimer, Walter Eucken, Wilhelm Röpke, Franz Böhm and Alfred Müller-Armack (who originally coined the term Soziale Marktwirtschaft). Socialism refers to a broad array of doctrines or political movements that envisage a socio-economic system in which property and the distribution of wealth are subject to social control. ... For other uses, see Capitalism (disambiguation). ... A mixed economy is an economy that contains both private and public, or state owned (or controlled) enterprises. ... Accumulated GDP growth for various countries. ... An 1837 political cartoon about unemployment in the United States. ... ... Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. ... A planned economy is an economic system in which economic decisions are made by centralized planners, who determine what sorts of goods and services to produce, and how they are to be priced and allocated. ... Franz Oppenheimer Franz Oppenheimer (born 30 March 1864 in Berlin; died 30 September 1943 in Los Angeles) was a German sociologist and political economist, who also in the area of the fundamental sociology of the state. ... Walter Eucken (* 17 January 1891 Jena, Germany; † 20 March 1950 London, UK) was a German economist and father of ordoliberalism. ... Wilhelm Röpke Wilhelm Röpke (October 10, 1899, Schwarmstedt, a village near Hannover - February 12, 1966, Geneva) was one of the most important spiritual fathers of the German social market economy. ... Franz Böhm (* 16 February 1895 Konstanz, Germany; † 26 September 1977 Rockenberg) was a German politician, lawyer, and economist. ... Alfred Müller-Armack (* 28 June 1901 Essen, Germany; † 16 March 1978 Köln) was a German economist and politician. ...

At first controversial, the model became increasingly popular in West Germany and Austria, since in both states economic success (Wirtschaftswunder) was identified with it. From the 1960s, the social market economy was the main economic model in mainland Western Europe, pursued by administrations of both the centre right (usually led by Christian Democratic parties) and the centre left (usually led by Labour, Social Democratic parties). The term Wirtschaftswunder (English: economic miracle) designates the upturn experienced in the West German and Austrian economies after the Second World War. ... The centre-right is a political term commonly used to describe or denote political parties or organisations (such as think tanks) that stretch from the centre to the right on the left-right spectrum, excluding extreme right wing beliefs such as fascism. ... Christian Democracy is a heterogeneous political ideology. ... In politics, the term centre-left is commonly used to describe and denote political parties or organisations that stretch from the centre to the left or are moderately left-wing, as opposed to extreme left wing beliefs such as communism. ... The name Labour Party or Labor Party is used by several political parties around the world. ... Social democracy is a political ideology emerging in the late 19th and early 20th centuries from supporters of Marxism who believed that the transition to a socialist society could be achieved through democratic evolutionary rather than revolutionary means. ...

Southern European states, especially Italy, preferred large-scale public services, high salary growth rates and a low unemployment rate over low inflation, low national debt, low public expenditure and other economic health policies. This Service State (Italian Stato Assistenziale, now derogatory) version of the social market is generally considered less successful than the more thrifty Northern European models. Current division of Europe into five (or more) regions: one definition of Southern Europe is marked in green Southern Europe is a region of the European continent. ... Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. ... Government debt (public debt, national debt) is money owed by government, at any level (central government, federal government, national government, municipal government, local government, regional government). ...

Following the fall of the Berlin Wall on 9 November 1989, most centre right parties gradually moved towards the highly capitalist economic policies of neoliberalism, and a significant portion of the centre left made a similar move, developing the "Third Way". Nevertheless, a commitment to some form of social market economy was present in the European Union Constitution (now in limbo following the referenda in France and the Netherlands). East German construction workers building the Berlin Wall, 1961-11-20 In the last phase of the wall´s development, the death strip between fence and concrete wall gave guards a clear shot at hundreds of would-be escapees from the East. ... November 9 is the 313th day of the year (314th in leap years) in the Gregorian Calendar, with 52 days remaining. ... 1989 (MCMLXXXIX) was a common year starting on Sunday of the Gregorian calendar. ... For the school of international relations, see Neoliberalism (international relations). ... Third way can refer to: The Third Way, an economic and political idea that positions itself between democratic socialism and laissez-faire capitalism, combining the ordoliberal social market with neo-liberalism. ...

The Union shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment. It shall promote scientific and technological advance.

— Art. I-3 of the Treaty establishing a Constitution for Europe The constitutional treaty as signed in Rome on 29 October 2004 by representatives of the EU member states The Treaty establishing a Constitution for Europe (TCE), commonly referred to as the European Constitution, is an international treaty intended to create a constitution for the European Union. ...

See also

• Mixed economy
• Ordoliberalism
• Social Market Foundation
• Note: The social market economy is not to be confused with the socialist market economy - the economic system of the People's Republic of China.

A mixed economy is an economy that contains both private and public, or state owned (or controlled) enterprises. ... According to ordoliberalism, the state must create a proper legal environment for the economy and maintain a healthy level of competition through measures that adhere to market principles. ... The Social Market Foundation is a think tank based in the UK. It was formed in 1989 by supporters of David Owen after the SDP disbanded. ... Market socialism is an attempt by a Soviet-style economy to introduce market elements into its economic system to improve economic growth. ...

External links

• Initiative Neue Soziale Marktwirtschaft (in German)
• The Social Market Economy - U.S. Library of Congress
• Essay on Germany's Social Market Economy
• Short Definition from the Economist