Sahra Wagenknecht, a leader of Germany's Left Party (die LINKE) and one of the hottest members of the Bundestag, has written a provocative book in which she seems to turn away from Marx and instead embrace Ludwig Erhard. The book, Freiheit statt Kapitalismus ("Freedom instead of Capitalism") embraces the teachings of Walter Eucken and Alfred Müller-Armack, the theorists of so-called ordo-liberalism. The theories of ordo-liberalism were developed in the 1930s as a reaction against state socialism and Nazism, but were put into practice in the early postwar period by West Germany's economics minister and chancellor Ludwig Erhard, the architect of Germany's Economic Miracle (Wirtschaftswunder). Ordo-liberalism distinguishes itself from classical neo-liberalism in that it promotes a social market economy where the state plays a decisive role in guaranteeing market competition. Now the market economy was no longer hostile to the common good. In her book, Sahra Wagenknecht praises competition, meritocracy and individual responsibility as defined by the ordo-liberals, whose teachings, consistently applied, supposedly lead directly to a new "creative socialism". The problem with Germany today is that the economy is stalled in moribund capitalism, controlled by the "Ackermänner" and finance capital, which stifles competition and creativity.
"Der Kapitalismus ist unter diesen Bedingungen keine Wirtschaftsordnung mehr, die Produktivität, Kreativität, Innovation und technologischen Fortschritt befördert. Heute verlangsamt er Innovationen, behindert Investitionen und blockiert den ökologisch dringend notwendigen Wandel. ( ... ) Der Kapitalismus ist alt, krank und unproduktiv geworden."
(Under these conditions capitalism is no longer an economic order that promotes productivity, creativity, innovation and technological advancement. Today it puts the brakes on innovation, prohibits investments and blocks the urgently needed ecological change. Capitalism is old, sick and unproductive.)
Interesting that Wagenrecht, who grew up in the DDR, sees the foundation for "creative socialism" in the old economy of the Federal Republic:
Der damalige Kapitalismus war sozial gebändigt. Man konnte von der gesetzlichen Rente im Alter leben. Bei Gesundheit gab es keine Zuzahlungen. Die Löhne stiegen. Hartz TV war noch nicht mal erdacht. Vor allem aber hatte die Politik mehr Spielräume, weil es noch nicht diese konzentrierte Wirtschaftsmacht gab.
(At that time capitalism was socially tamed. The elderly could live on the state pension. There were no co-payments for health care. Wages were rising, no one thought about Hartz IV. But above all there was more leeway for policies, because economic power was not so concentrated.)
Sahra Wagenrechts prescriptions for change are controversial. She wants to nationalize the banks, something Deutsche Bank's Josef Ackermann and the other Ackermänner will never let happen, She envisions smaller, more nimble enterprises. As they grow larger, their ownership is transferred proportionately to the employees. These changes, as desirable as they might be, will not enacted in the foreseeable future. Also, Wagenrechts has not thought through the challenges of globalization - a threat that Ludwig Erhard never had to face. But it is encouraging to see a leading figure on of the Left Party reject the old dogmas and put forward new ideas - even if they are rooted in the middle of the last century.
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