Dr. Philipp-Christian Wachs, Executive Director HAUS RISSEN HAMBURG

There's life in the old dog yet

The free market economy will survive – if we teach it earlier and in a more profound way, namely in school.

Is the free market economy facing a dead end? Almost everywhere, people seem to announce its demise. Large parts of politics interpret the self-inflicted failure of the financial markets as a failure of our economic order in general. More and more Germans are of the opinion that the current system is not up-to-date anymore. And at this moment eaxctly, populists start announcing a „Neosocialism“ as a cure for the unleashed markets. Their demands fit well with the fundamental criticism of the free market economy, which is widely spread among the population. Consequently, it only took weeks before a sixty-year-old success story was suddenly facing a legitimation crisis.

Social market economy as a guarantee for the stability of our democracy

Ludwig Erhard – as the father of the social market economy – had experiences with facing unleashed markets. His concept of the social market was the answer to the financial world crisis of 1929 and its devastating consequences. For some, the social market economy might not be the ideal model in theory, but the practical experience shows that it indeed proved of value. Whether you like it or not: It is the order that defines Germany and that surrounds us. It belongs to the central binding forces of our society and to the core elements of our democracy.

Basic Economic Knowledge as basic Democratic Knowledge

Where can basic knowledge about social market economy be learned? In school, one would think. What a wonderful dream. Economy as a subject of its own is not being taught on wide level in Germany. It merely exists as a cross-sectional, interdisciplinary topic only.

Consequently, teaching of elementary economic knowledge must become a central part of our educational agenda. Without a profound knowledge our children will not be able to participate successfully in the globalised world. Our political system and our economic order cannot be viewed separately. Our children need to be able to understand processes, causes and effects. With this knowledge only they can become citizens who carry, develop and – if necessary – defend our society's order against siren chants from left and right.

Social market economy is like our democracy – it is not inherited automatically. It needs to be learned and practiced by each generation. Therefore, we all – not schools only – must become aware of the advantages of the social market economy again and promote these to our children.

If you are interested in more information concerning this issue, please contact us at mail@hbpa.eu