Ordoliberalism grants the state a stronger role than Austrian or Chicago neoliberalism does

Evidence

Along the spectrum of neoliberalism, ordoliberalism is found at a range of frequencies that owes some of its peculiarities to the specific German conditions encountered during the Weimar Republic and under Nazi rule. In contrast to the Austrian and Chicago emphasis on the rather abstract rule of the law, the ordoliberals grant the visibly strong state a much more prominent role in establishing and securing the capitalist market economy. This recognition of the role of the state is at the very center of ordoliberal efforts to theorize an ideal social order of capitalism and to design public policy to this end. The specific term policy of order (Ordnungspolitik) was coined by the Freiburg school, led by Walter Eucken and Franz Böhm, during the second half of the 1930s. Members of this school conceived of the need to theorize the frameworks that effectively structure the relationship between the state, the economy, and society in general. They thereby fostered an early understanding of the important relationship between law and economics, relative to their neoliberal comrades. Their central goal in this task was to secure a socially embedded and well-functioning competitive order. — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 503

Categorization

  • DEFINE: Distinguishes ordoliberalism and its Ordnungspolitik concept from Austrian and Chicago neoliberalism within the spectrum of the movement.
  • XREF: Connects to the other foundational-neoliberalism historiography reading (Mirowski/Plehwe’s Mont Pèlerin network research) on intra-neoliberal factions. — connects to: German ordoliberalism favors state framework provision over neoliberal state withdrawal. — Mark Blyth, Austerity: The History of a Dangerous…, 164; Ordoliberalism makes state policy the guardian of fragile market mechanisms — Michel Foucault, The Birth of Biopolitics: Lectures at…, 1258; Ordoliberalism is less distinct from other neoliberal streams than commonly assumed — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 499 (+11 more)

Broader Connections