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1.Doctrinaldiscussions
Inthe1920sandthe1930seconomicexperimentswereundertakenincoun-
trieswitheconomiesheavilydependentonagricultureandthosewhich
wereinterestedinrapidindustrialisation.Experimentsalsotookplaceinthe
moredevelopedcountrieswhere,despitethepresenceofacentrallysteered
economy,privateformsofownershipcontinuedtoplayanimportantrole.
Eucken,forexample,wasconvincedthatthecentrallyplannedeconomy
modelwouldnotallowfortheintroductionofaneconomicsystemthat
wouldbeincompliancewitheconomicmorphologyandnaturalsocial
order.Inhisvieweconomictheoryhadtopreciselydefineconceptssuch
as:stateeconomy,capitalisteconomy,andsocialisteconomy.Suchprecise
definitionsarenecessarytodistinguishbetweendifferenteconomicsystems,
especiallyasregardsprivateownership,theprinciplesofestablishingprices
andwages,theroleofmoney,andthelegalsystemsgoverningfinancialin-
stitutions.Thedoctrinesofordoliberalismandthesocialmarketeconomy
combinedcreatetheconstitutionalbasisofthepoliticalsystem.
Ordoliberalscriticisedtheseeming“blessings”ofcollectivism.Theyespecial-
lycriticisedthewidespreadnationalisationofthematerialsphere,whichis
basedonlargeeconomicunits,norms,standards,etc.Further,theyalsobe-
lievedthematerialspheretobeineffectiveandbelieveditcouldsignificantly
influencetheintangible,whichtoalargedegreereferredtonationalised
assetslikeeducation,healthcare,culture,andthewaytheywerefinanced.
Withoutafreemarket,thestate,whichmakesplannedinvestmentsusing
abstractmoneyforthispurpose,vastlyhindersthechoicesofindividuals.
Asearlyasinthe1930s,Euckenquestionedtheoverallsuccessofplanned
economymodelsstatingthatindividualaspirationsare,asarule,largely
differentthantheeffectsofproductionwhichissteeredbyaplan.Whatis
more,productiondecisionsmadecentrallyprecludetheexistenceofapri-
vatesectorwhichgeneratesthemeansofproduction.Withtime,evenwhat
isleftofitgetspushedoutbystateinterventions,ruiningbothindividual
andcollectiveresponsibility.
Basedontheseassumptionsordoliberalsclaimedthatmodernsocieties
shouldsolvetheireconomicproblemsbyskilfullylinkingthefeaturesofthe
systemofasmallindividualeconomywiththefeaturesofaplannedeconomy,
thatisfindthe“thirdway”.The“thirdway”isacombinationoftwoopposite
economicsystemsandacompromisebetweenthem.Euckenadmittedthat
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