Prof. Franz Josef Stegmann Bethlehem Social ... - Ordo Socialis

Stegmann
Economy, the state is not a simple night watchman; on the contrary, legislators and
government have to create "the legal framework for every economic activity, business, trade
and industry". 102
Added to the "competition of achievements", are equally important social conditions and
rules. These social objectives form the second pillar of Social Market Economy. Such social
elements are the alignment of the economy and production with the needs and wishes of consumers
(by the play of supply and demand) and not with a central state authority as existed in
Germany during the war and post-war periods; income distribution tied to individual performance
and achievement and. in this sense. "a just income distribution"; 103 and, above all,
social and economic interventions of the state to complement competition.
The founders of the Social Market Economy realised that economic competition alone is
insufficient to form a human economic order.
"For many things which are inaccessible to the market mechanism are of the greatest
importance for human needs."
People who are not, not yet or no longer able to compete "cannot be abandoned to the
market". These market passives are unable to take care of themselves in a manner required by
the market because they are ill, weak, young, old etc. As a result, one "must do something for
them if one wants to be responsible and human".
State intervention is also required in order to facilitate those necessary changes in the economic
structure which are beyond the ability of the individual people affected. Such changes
"cannot be allowed to regulate themselves, at some time or another, in a palaeoliberal, that is
capitalistic, manner”. 104
To summarise: the core of Social Market Economy is "competition of achievements",
established by state and politics and safeguarded by a clear framework. This regulated
competition promotes and guarantees economic efficiency and productivity. Added to
economic competition are, just as importantly, social conditions and objectives which form
the second pillar of Social Market Economy. According to Christian Social Teaching, it is
crucial that this social dimension is recognised as equal in weight to all economic activities.
Social corrections must not he carried out (perhaps) only later on, after the child has fallen
into the river; but more effectively, the child ought to be protected from falling into the water
in the first place.
Social Market Economy in the real and full sense establishes economic competition and
provides those presuppositions and conditions needed from the very beginning - as the often
mentioned Oswald von Nell-Breuning emphasised - for "a human economic process and its
positive social results". 105 Wilhelm Röpke, one of the fathers of Social Market Economy,
described the essential difference to capitalism as follows: according to this "concept,
102
Was ist Soziale Marktwirtschaft? 7 (see note 21).
103
Ludwig Erhard, Das Problem der freien Marktwirtschaft. in: Vierteljahreshefte zur Wirtschaftsordnung, 1949,
71‐87. 78.
104
Alexander Rüstow, Paläoliberalismus, Kommunismus, Neoliberalismus, in: Das christliche Gewissen und die
Soziale Marktwirtschaft, Offprint from Junge Wirtschaft. No. 2 / February 1960, 3‐7. 5 f.
105
See note 16.
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