Tuesday, February 22, 2011

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Ecological social market economy - its basic ideas and their distortion

request of the Federal Working Group on the economy Federal Party in October 2008 in Heilbronn.


The application was considered not for lack of time and should therefore be made available again. I believe that the content is so important that I have typed this and publish. The text was first in ödp forum: www.oekologisch-demokratische-partei.de/dcforum/DCForumID38/238.html .

ecological social market economy

A text by Ulrich Brehme (Osnabrück), link additions and some comments by Felix Staratschek (Radevormwald)

The idea of social market economy was born out of recognition that the major economic crisis was caused in Germany by the formation of cartels and monopolies. These corrupt politicians with their power, so that the economic problems intensify with central administrative, governing and price controls ever. The random liberalism had failed because he had allowed the formation of economic power by monopolies and cartels.

The response of liberal Wirtaschaftswissenschaftler the "Freiburg School" ( http://de.wikipedia.org/wiki/Freiburger_Schule ) with Walter Eucken ( http://www.eucken.org/ ) was a new polit approach Ordoliberalismus. Its basic principle is to create and maintain a functioning price system through competition on the merits, the definition of property rights and liability rules, and a rigorous competition policy.

Eucken favored the competitive economy, where this is possible. This economic system is most compatible with democracy. Target the structural design of the economic system is to prevent the distortion of the price mechanism. This is a strong state is necessary, the corporations, that market power is prevented. This requirement is in stark contrast to Eucken today world pursued policies to attract multinational companies through direct and indirect subsidies to the country.

The social market economy is to protect the young entrepreneurs of the superior power of cartels or monopolies and ensure fair competition. The competition promotes productivity and stimulates innovation. He constantly brings forth new and better products and services. Added to the subsidiarity concept came from the Catholic social teaching ( http://de.wikipedia.org/wiki/Katholische_Soziallehre ). The subsidiarity principle serves to limit state action and commitment



The American "Chicago School "( http://de.wikipedia.org/wiki/Chicagoer_Schule ) under Hayek ( http://de.wikipedia.org/wiki/Friedrich_August_von_Hayek ) and Friedman calls the other hand, an uncontrolled global free trade and a completely privatized community. The public interest (energy, water, communications, health, pension, money printing and state administration) to be privatized. Social and ecological standards will be rejected. They reject the notion of "social justice" from. The state should is no longer worry about distribution issues. So, a right of participation of employees is rejected. note of Felix Staratschek: This form of government is called the guarantor state and should be enforced with the "Lisbon Treaty" in Europe from above. For this reason, members of the Association ÖDP Bergisches will actively lead the country to prevent the Treaty of Lisbon or such consequences.

Eucken represented in Ggs. to Hayek's view that economic power has always the trend towards concentration of power that must be stopped in order to obtain competition. Alone identify the exact order forms secure meaningful competition. Eucken called for equality and progressive taxation to finance the welfare state.

The state should continue for the tasks of social policy, be such as education, infrastructure, safety and environmental responsibility, because they require state planning and are often organized as a natural monopoly.

This is evident today at the abuses of power networks, especially by large energy companies. Insufficient unbundling of companies operating the networks leads to the fact that they use their market power to discriminate in network access.

Eucken presented the following principles of the Competition Rules on

a) constituent principles
first The basic principle (free pricing)
second Stability of the currency
third open markets (particularly low tariffs, weak patents, Economic freedom for all)
4th Private property
5th Freedom of contract (which may not lead to the elimination of freedom of contract)
6th all liability (to return results only power equivalent)
7th Consistency of economic policy
8th Affinities of the constituent principles

b) regulative principles
first Defense monopoly (antitrust and monopoly control)
second progressive income tax
third Economic calculation for the internalisation of external costs
4th Labour law (against child labor exploitation and health, for limitation of working hours)

called Eucken, these principles in the Basic Law to anchor ("economic constitution"). The constituent principles aim to achieve an ideal system of competition in practice, while the regulatory principles rather have a corrective function to compensate for deficiencies.

goal of the social market economy is an overarching principle of self-responsible people together, where everyone has a chance of success to its legitimate interests. It also required a fair safety net to all people a life in dignity. Because of the decentralized governance of economic and political order can contribute in both areas, no concentrations of power. This is the genuine and essential, primarily direct-democratic decision-making rights required of all citizens.

The main problem of free markets is pushing social and environmental costs on the environment and future generations. Climate change is the biggest failure of the market. The ecological social market economy also takes into account the ecological efficiency of economic activity. The cost of ecological disturbances and damage to be recorded when necessary and charge the polluters. A human right to healthy natural environment - and for future generations - can be done.

The oil crisis of 1973 and the warnings of the Club of Rome "1976 (inset of F.St.: and 1975: Herbert Gruhl: A planet is being plundered - the horrors of our balance sheet Policy) showed many people in the environmental and social limits to growth. Already

Walter Eucken calls for effective laws to protect forests and water, the working time limits, for accident prevention in the workplace and the health of children, the prohibition of child labor.

The ecological social market economy is based on Eucken's proposal for a social market economy. She tries to include external costs and free goods in the market balance and calls for fair compensation for environmental damage. It combines the principle of competition with the polluter pays principle. Liability acts against the emergence of externalities, where no monopoly exists. Only with clarity are clearly attributable to the consequences of errors.

goal is to reach an ecological balance and environmental services. Economy, decentralization and accountability are principles of organization of this new market economy. Companies and people should be allowed as much freedom of choice. To dos and don'ts can be effective only if insufficient market incentives.

In an efficient collection of external costs, such as the eco-tax or (supplement F.St.: really blame external costs) emission trading (according to my information because of an oversupply of allowances dirt at the moment (autumn 2008) is almost ineffective and also promotes also questionable projects - but the rules of the ÖDP could do better, of course) is the optimal allocation of resources and results of the market maintain!.

Prices must tell the ecological truth. Distorting subsidies, however, the market equilibrium. the federal government could save 30 billion euros if they would reduce environmentally harmful subsidies.

The ecological tax reform ETR ( http://de.wikipedia.org/wiki/% C3% 96kologische_Steuerreform ) to Prof. Binswanger ( http://de.wikipedia.org/wiki/Hans_Christoph_Binswanger ) is based on the factors of production theory ( http://de.wikipedia.org/wiki/Produktionsfaktorentheorie ). Traditional factors of production are labor, land and capital. By Prof. Binswanger of the production factor energy was additionally introduced. The steering effect of the ETR is based solely on a balance between the Produktionbsfaktoren work and energy. This builds on the concept of revenue neutrality. The average tax burden does not change with the ETR.

Without high revenue-neutral environmental taxes, the Kyoto targets will continue to be missed, because green taxes are the efficient means for creating an ecological structural change. For Major emitters, the emission trading advantage because it is easier to be configured. However, the auctioning of allowances is - instead of a free allocation necessary.

It is ecologically impossible that all of the more than 6 billion people who currently live on the earth, consume resources in the same per capita level as today, people in Europe or North America. Still less is it possible to extend this level of consumption of future generations. The only alternative is the sustainable development of the world, rather than continuing to rely on an ideology of growth, at the end of a field left by the devastation.

The Ecological Democratic Party (Ödp) http://www.oedp.de/ - founded in 1982 as legal successor of the GAZ-Green Action Future (1978) - aims to achieve the social market economy. We want a tax reform on labor and the environment through which the consumption of fossil fuels is loaded with green taxes. The ödp is the world's first party of this concept according to Prof. Dr. Binswanger included in their program (and before Ernst Ulrich von Weizsacker's book Earth Politics this occurred (F.St.)) . For in Germany (only there?) the use of fossil energy is much too cheap. This leads to energy waste and environmental degradation.

supports the ödp, for a just world economy, the initiative http://www.globalmarshallplan.org/ (2) for a global ecological social market economy and the campaign "Shrink it or sink it" for transparency and power limit the International Monetary Fund IMF. (3)

"Between State and entrepreneurial business plan or principle still functional, there is a difference." (Ludwig Erhard, Prosperity for All, p. 170)



Comments (1) Since the 1970s, the lobbying organizations of the social market economy, such as the Walter Eucken Society and the Community Action Social market economy by monetarists (http://de.wikipedia.org/wiki/Monetarismus) by Friedrich August von Hayek undermined. The Monetaismus will Ggs. in the social market economy, a night watchman state with a much less developed social system and fails to provide a high value on a strict prohibition and an effective monopoly control. In 1974, Hayek even chairman of the Walter Eucken - society. after the fall of socialism in the former East Germany that has the entire library Eucken thrown in the trash, but it is named after him. Most of the works but could be saved by the grandson of Eucken.

(2) The "Global Marshall Plan" is an initiative of former U.S. vice-presidential Al Gor back and calls out the ecological social market economy, the implementation of the Millennium Development Goals of the UN to fight poverty.

(3) The IMF was originally the task of stabilizing the world financial system. Today, he is forcing developing countries to his position on the assessment of their creditworthiness, a "neoliberal" economic system. Developed countries such as Germany, have according to their share capital, the majority of the voting rights within the IMF are, especially here in the responsibility.

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