German ordoliberals and Austrian neoliberals differ only in emphasis, not substance

Evidence

Many intellectual histories of neoliberalism tend to juxtapose German ordoliberalism and Austrian neoliberalism in order to emphasize the Germanic state tradition, which is difficult to reconcile with the market radical individualism that has been inspired by the marginalist revolution (most recently, Foucault 2004). A leading German ordoliberal, Hans Willgerodt, alerts his readers to the dangers, when considering the differences between related neoliberal concepts, as more important than what is common to all of them. According to Willgerodt, neoliberals acknowledge the need to complement traditional liberalism with important external alien elements, correct mistakes of the past, and transform doctrine in light of new insights and convictions. A better understanding of the role of the state is considered a key task on which true neoliberals would agree. While competition between liberal convictions may suggest a separation of ordoliberalism from related approaches, Willgerodt maintains that “in reality there exists only a difference in emphasis, and opportunities for an academic and political division of labor” (Willgerodt 2006, 55). Foucault (2004) correctly emphasized that German ordoliberals were indeed the avant garde, and they went further than other members of the neoliberal family in addressing the shortcomings of traditional liberalism. The ordoliberals collaborated in developing a new social theory of the economy, and strongly redoubled efforts to understand the relation between law and economics, for example. But Foucault underestimates the extent to which both German and Austrian neoliberal economists shared a particular (sociological) understanding of economics and fought a narrow econometric/technical understanding. — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 500

Categorization

• XREF: Connects to Foucault’s lecture series on biopolitics, where ordoliberalism is treated as distinct from Austrian radical individualism; the passage challenges that juxtaposition. — connects to: Monetarism mainstreamed Austrian and ordoliberal economic ideas — Mark Blyth, Austerity: The History of a Dangerous…, 412; Reputation as a Keynesian can mask an earlier Austrian-network allegiance. — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 293; Anti-Keynesianism and Austrian marginalism unite the two neo-liberalisms — Michel Foucault, The Birth of Biopolitics: Lectures at…, 527 (+3 more)
• DEFINE: Clarifies what ordoliberalism actually shares with Austrian neoliberalism: a sociological, non-econometric understanding of economics.

Broader Connections

• German ordoliberalism kept neoclassical equilibrium theory while the Austrian school diverged from it #qualifies (0.82) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 551