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Ordoliberalism (also called German neoliberalism) is a school of liberalism emphasizing the need for the state to ensure that the free market produces results close to its theoretical potential (see allocative efficiency). Liberalism is a broad array of related ideas and theories of Government that consider individual Liberty to be the most important political goal A free market is a Market in which property rights are voluntarily exchanged at a price arranged completely by the mutual consent of sellers and buyers Allocative efficiency is a situation in which the limited resources of a firm are allocated in accordance with the wishes of Consumers An allocatively efficient economy The theory was developed by German economists and legal scholars such as Wilhelm Röpke (who spent the Nazi period in exile in Turkey), Walter Eucken, Franz Böhm and Hans Großmann-Doerth from about 1930-1950; Ordoliberal ideals (with modifications) drove the creation of the post-World War II German social market economy and its attendant Wirtschaftswunder. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. An economist is an expert in the Social science of Economics. Wilhelm Röpke ( October 10, 1899 in Schwarmstedt – February 12, 1966 in Geneva) was one of the most important spiritual Nazi Germany and the Third Reich are the common English names for Germany under the regime of Adolf Hitler and the National Socialist German Workers Exile means to be away from one's home (ie city state or country while either being explicitly refused permission to return and/or being threatened by prison or death upon return Turkey (Türkiye known officially as the Republic of Turkey ( is a Eurasian Country that stretches Walter Eucken ( 17 January 1891 - 20 March 1950) was a German Economist and father of Ordoliberalism. Franz Böhm ( Konstanz, 16 February, 1895 — Rockenberg, 26 September, 1977) was a German Politician, Lawyer World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including The social market economy was the main economic model used in Western and Northern Europe during the Cold War era The term ( German for "economic miracle" describes the rapid reconstruction and development of the economies of West Germany and Austria
Ordoliberal theory holds that 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. A state is a political association with effective Sovereignty over a geographic Area and representing a Population. An economy is the realized social system of production exchange distribution and consumption of goods and services of a country or other area Sao Paulo Stock Exchangejpg|thumb| Virtual market arena where buyer and seller are not present and trade via intemediates and electronical information [1] The concern is that, if the state does not take active measures to foster competition, firms with monopoly (or oligopoly) power will emerge, which will not only subvert the advantages offered by the market economy, but also possibly undermine good government, since strong economic power can be transformed into political power. A corporation is a separate legal entity usually used to conduct business In Economics, a monopoly (from Greek monos, alone or single + polein, to sell exists when a specific individual or enterprise has sufficient An oligopoly is a Market form in which a Market or Industry is dominated by a small number of sellers (oligopolists A market economy is a realized Social system based on the Division of labour in which the prices of Goods and Services are determined in a Quoting Stephen Padgett: "A central tenet of ordo-liberalism is a clearly defined division of labor in economic management, with specific responsibilities assigned to particular institutions. Monetary policy should be the responsibility of a central bank committed to monetary stability and low inflation, and insulated from political pressure by independent status. Monetary policy is the process by which the Government, Central bank, or monetary authority of a country controls (i the Supply of Money, A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time Fiscal policy—balancing tax revenue against government expenditure—is the domain of the government, whilst macro-economic policy is the preserve of employers and trade unions. Fiscal policy, taking the scope of Budgetary policy, refers to government policy that attempts to influence the direction of the economy through changes in government taxes Tax revenue is the Income that is gained by Governments because of Taxation of the people Government spending or government expenditure is classified by economists into three main types Macroeconomics is a branch of Economics that deals with the performance structure and behavior of a national or regional Economy as a whole Employment is a Contract between two parties, one being the employer and the other being the employee. A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages hours and working conditions forming " The state should form an economical order instead of directing economical processes.
Ordoliberalism was centered around the academic journal Ordo: Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft. An academic journal is a peer-reviewed Periodical in which scholarship relating to a particular Academic discipline is published Among the contributors to journal were Franz Böhm, Walter Eucken, Ludwig Erhard, Friedrich Hayek, Alexander Rüstow, and others. Franz Böhm ( Konstanz, 16 February, 1895 — Rockenberg, 26 September, 1977) was a German Politician, Lawyer Walter Eucken ( 17 January 1891 - 20 March 1950) was a German Economist and father of Ordoliberalism. "Erhard" redirects here For the saint of this name see Saint Erhard. Friedrich August von Hayek CH ( May 8, 1899 March 23, 1992) was an Austrian British Economist Alexander Rüstow ( April 8 1885 &ndash June 30, 1963) was a German Sociologist and Economist.
Wilhelm Röpke considered Ordoliberalism to be "liberal conservatism," against capitalism in his work Civitas Humana (A Humane Order of Society, 1944). Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where Alexander Rüstow also has criticized laissez-faire capitalism in his work Das Versagen des Wirtschaftsliberalismus (The Failure of Economic Liberalism, 1950). Laissez-faire ( pronunciation: French,; English,) is a French phrase literally meaning Let do (“allow to do” Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where The Ordoliberals thus separated themselves from classical liberals like Ludwig von Mises and Friedrich Hayek. Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world Ludwig Heinrich Edler von Mises (ˈluːtvɪç fɔn ˈmiːzəs ( September 29, 1881 – October 10, 1973) was an Austrian Friedrich August von Hayek CH ( May 8, 1899 March 23, 1992) was an Austrian British Economist
For their political philosophy, Ordoliberals were influenced by Aristotle, Tocqueville, Hegel, Spengler and Karl Mannheim. Aristotle (Greek Aristotélēs) (384 BC – 322 BC was a Greek philosopher a student of Plato and teacher of Alexander the Great. Oswald Arnold Gottfried Spengler (29 May 1880 Blankenburg am Harz &ndash 8 May 1936 Munich) was a German Historian and Philosopher whose Karl Mannheim ( March 27, 1893, Budapest – January 9, 1947, London) or Mannheim Károly in the original writing