Eucken saw capitalism as two incompatible orders that real economies must combine

Evidence

For Walter Eucken in particular, capitalism was not the haphazard assemblage of individuals envisioned by Smith. Rather, it was composed of two fundamentally incompatible structural orders that he termed the “transaction economy” and the “centrally administered economy.” Although these orders are incompatible in their essences, real economies necessarily combine elements of both, and that’s where the problems start. Especially when parliaments get involved, elements of the administrative order can be captured by the most powerful members of the transactional order, hence the fear of cartels and private power. — Mark Blyth, Austerity, 361

Categorization

• DEFINE: Introduces Eucken’s transaction vs. centrally administered economy distinction.
• XREF: connects to: Eucken borrowed Stackelberg’s two-system typology but endorsed only the politically framed market economy — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 532; Advanced capitalism needs two contradictory legitimating discourses at once — Perry Anderson, The Origins of Postmodernity, 275; Ordoliberalism denied an essential capitalist logic and made rival capitalisms inventable — Michel Foucault, The Birth of Biopolitics: Lectures at…, 940 (+2 more)

Broader Connections

• Eucken borrowed Stackelberg’s two-system typology but endorsed only the politically framed market economy #expands (0.85) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 532
• Ordoliberalism denied an essential capitalist logic and made rival capitalisms inventable #expands (0.80) — Michel Foucault, The Birth of Biopolitics, 940
• Advanced capitalism needs two contradictory legitimating discourses at once #corroborates (0.78) — Perry Anderson, The Origins of Postmodernity, 275
• Modern capitalism created two overlapping worlds of territorial states and dispersed private property. #exemplifies (0.75) — Quinn Slobodian, Globalists, 50
• Capitalist modernity cannot be understood from its internal dynamics alone #corroborates (0.72) — Stuart Hall, Essential Essays, Volume 2, 487