A study of the economic development of the Federal Republic of Germany, characterized as a 3rd way between capitalism and socialism. Germany's Social Market Economy, an economic system based upon the scientific tradition of the "Freiburg School," is presented and analyzed in the light of its development since 1950, from the "economic miracle" to the “Social Reform” for the 21st century.
Prerequisites:
Introductory economics
Learning outcomes:
Students will possess an in depth knowledge of the successes and failures of the German economic and social system.
Method of presentation:
Lectures and seminars with student paper presentations
Required work and form of assessment:
Mid-term (25%) and final exam (25%), term paper (30%), and oral participation (20%)
content:
1. Overview of the German Economy
2. From Classical Liberalism to Neo-Liberalism
a. "Laissez-faire"
b. Liberalism
c. Interventionism
d. Neo-Liberalism
e. Ordo-Liberalism: the Freiburg School
f. Eucken's constituting and regulating principles
3. Social Market Economy
a. Definition
b. Pure market economy versus social market economy
c. Comparing social market economy to liberal, interventionist,
and socialist economies
d. Shaping the structure of the Federal Republic's social
market economy
e. Principles and phases of the social market economy
4. The "Economic Miracle"
a. The economic situation in Germany after World War II
b. Basic decision within the political order: market or planned
economy?
c. Decision for market economy
d. Currency reform
e. Basis for the 'Economic Miracle'
f. Growth cycles in the German economy
5. Economic Policies of the Federal Republic: the "Magic Quadrangle"
a. Basis and goals of economic policy
b. Business cycles
c. Goals of the "Magic Quadrangle": full employment, price
stability, economic growth, balance of trade
d. Attainment of goals; conflict of goals
6. The Social Security System
a. Concepts of social policies
b. Origins of social policy in Germany
c. The support structure of the social security system in the
Federal Republic
d. Elements of social security: retirement, medical, accident,
unemployment, nursing care
e. Social aid and social services: welfare, housing subsidies, child
subsidies, education and training programs
f. Problems in financing the 'Social Safety Net'
7. The Tax System of the Federal Republic
a. State revenues and expenditures
b. The federal budget
c. Direct and indirect taxes
d. The most important taxes: income tax, sales tax, corporate
tax, petroleum tax,
tobacco tax, vehicle tax
e. Regional distribution of tax revenues
8. The Tasks of "der öffentlichen Hand" (State)
a. Distribution of tasks in the Federal Republic
b. Jurisdiction of regional offices
c. State budgets
d. Financing state tasks
e. The role of financial policy
f. Growing state share of the GDP
g. Under and over provision through state means
9. The State as Employer and Entrepreneur
a. The Civil Service
b. The State employer
c. Personnel pool and costs
d. Economic activities of "der öffentlichen Hand"
e. State enterprises
f. Problems of reprivatization
10. Asset Formation Among Workers
a. Aspects of the politics of distribution
b. Types of assets
c. Forms of asset formation
d. Savings incentives, stock options, profit sharing
e. Criticisms of political measures relating to asset formation
11. Workers’ Co-Determination
a. Definition and goals of co-determination.
b. Degrees of co-determination
c. Levels of co-determination
d. Forms of co-determinations in German Business
e. Excursus: AG structure
f. The American approach to worker participation
Required readings:
Breyer, F. – Kolmar, M.: Grundlagen der Wirtschaftspolitik. Mohr-Siebeck, 2010.
Dickertmann, D. – Gelbhaar, S. et al.: Finanzwissenschaft. NWB Verlag, 2000.
Eucken, W (Hrsg.).: Grundsätze der Wirtschaftspolitik: mit einem Gespräch zwischen Ernst-Joachim Mestmäcker und Walter Oswalt. UTB, 2004.
Lampert, H. – Bossert, A. (Hg.): Die Wirtschafts-und Sozialordnungen der BRD. Olzog, 2011.
Lampert, H. – Althammer, J.: Lehrbuch der Sozialpolitik. Springer, 2007.
Hasse, R.H. – Quass, F. (Hg.): Wirtschaftsordnung und Gesellschaftskonzept. Haupt, 2003.
Schneider, A.M.: Ordnungsaspekte der Nationalökonomik. Haupt, 2004.
Söllner, F.: Die Geschichte des ökonomischen Denkens. Springer, 2012.
Recommended readings:
Altmann, J.: Wirtschaftspolitik. UTB, 2007.
Ashauer, G. Grundwissen Wirtschaft. Klett, 2005.
Dettling, W.: Wirtschaftskummerland? Wege aus der Globalisierungsfalle. Beck, 1998.
Gürtler, D.: Vorbild Deutschland. Eichborn, 2003.
Keese, C.: Rettet den Kapitalismus. Hoffmann & Campe, 2004.
Sinn, H.-W.: Ist Deutschland noch zu retten? Econ, 2005.
Steingart, G.: Deutschland – Der Abstieg eines Superstars Piper, 2004.
Stiglitz, J.: Die Schatten der Globalisierung Siedler, 2004.
Brief Biography of Instructor:
Hans-Joachim Stübig earned a Diplom-Volkswirtschaft degree in economics from the University of Freiburg He currently lectures and teaches seminars for the IES German Programs.
Social Market Economy In Germany
A study of the economic development of the Federal Republic of Germany, characterized as a 3rd way between capitalism and socialism. Germany's Social Market Economy, an economic system based upon the scientific tradition of the "Freiburg School," is presented and analyzed in the light of its development since 1950, from the "economic miracle" to the “Social Reform” for the 21st century.
Introductory economics
Students will possess an in depth knowledge of the successes and failures of the German economic and social system.
Lectures and seminars with student paper presentations
Mid-term (25%) and final exam (25%), term paper (30%), and oral participation (20%)
1. Overview of the German Economy
2. From Classical Liberalism to Neo-Liberalism
a. "Laissez-faire"
b. Liberalism
c. Interventionism
d. Neo-Liberalism
e. Ordo-Liberalism: the Freiburg School
f. Eucken's constituting and regulating principles
3. Social Market Economy
a. Definition
b. Pure market economy versus social market economy
c. Comparing social market economy to liberal, interventionist,
and socialist economies
d. Shaping the structure of the Federal Republic's social
market economy
e. Principles and phases of the social market economy
4. The "Economic Miracle"
a. The economic situation in Germany after World War II
b. Basic decision within the political order: market or planned
economy?
c. Decision for market economy
d. Currency reform
e. Basis for the 'Economic Miracle'
f. Growth cycles in the German economy
5. Economic Policies of the Federal Republic: the "Magic Quadrangle"
a. Basis and goals of economic policy
b. Business cycles
c. Goals of the "Magic Quadrangle": full employment, price
stability, economic growth, balance of trade
d. Attainment of goals; conflict of goals
6. The Social Security System
a. Concepts of social policies
b. Origins of social policy in Germany
c. The support structure of the social security system in the
Federal Republic
d. Elements of social security: retirement, medical, accident,
unemployment, nursing care
e. Social aid and social services: welfare, housing subsidies, child
subsidies, education and training programs
f. Problems in financing the 'Social Safety Net'
7. The Tax System of the Federal Republic
a. State revenues and expenditures
b. The federal budget
c. Direct and indirect taxes
d. The most important taxes: income tax, sales tax, corporate
tax, petroleum tax,
tobacco tax, vehicle tax
e. Regional distribution of tax revenues
8. The Tasks of "der öffentlichen Hand" (State)
a. Distribution of tasks in the Federal Republic
b. Jurisdiction of regional offices
c. State budgets
d. Financing state tasks
e. The role of financial policy
f. Growing state share of the GDP
g. Under and over provision through state means
9. The State as Employer and Entrepreneur
a. The Civil Service
b. The State employer
c. Personnel pool and costs
d. Economic activities of "der öffentlichen Hand"
e. State enterprises
f. Problems of reprivatization
10. Asset Formation Among Workers
a. Aspects of the politics of distribution
b. Types of assets
c. Forms of asset formation
d. Savings incentives, stock options, profit sharing
e. Criticisms of political measures relating to asset formation
11. Workers’ Co-Determination
a. Definition and goals of co-determination.
b. Degrees of co-determination
c. Levels of co-determination
d. Forms of co-determinations in German Business
e. Excursus: AG structure
f. The American approach to worker participation
Hans-Joachim Stübig earned a Diplom-Volkswirtschaft degree in economics from the University of Freiburg He currently lectures and teaches seminars for the IES German Programs.