Page 66 - The Making of the German Post-war Economy

1.2

THE FREIBURG SCHOOL AND

ORDO-LIBERALISM

The real challenge in the political realm no less than in that of the economy
is to establish a framework that induces ordinary self-interested people
to pursue in their own interest what is in the common interest of all.
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(Walter Eucken, 1940)

The destruction of the democratic system from the inside by the National
Socialists and the dire economic situation after the collapse of the Third
Reich meant that the immediate post-war years were widely characterised
by prevalent disenchantment with politics and the struggle for existence.
Nevertheless, due to the inadequate supply of food and basic goods, there
was increasing public interest in economic affairs and a corresponding
demand for information. In this context, the so-called ‘ordo-liberal
2
Freiburg School’, or ‘Freiburg School of Law and Economics’, aimed not
only to provide an economic concept adequate to deal with the prevailing
situation but also directly informed the public about its concept and
approach. Thus, quite in contrast to the Freiburg Circles, the Freiburg
School targeted its ideas at the general public. Significantly, a progressive
publication entitled Ordnung der Wirtschaft published in 1937 had marked
the birth of the Freiburg School and also ordo-liberalism’s first public
appearance as a new variant of neo-liberalism.
With regard to the communication of a particular concept, however, the
commonly used expression ‘Freiburg School’ for ordo-liberalism is correct
but imprecise: the two must be distinguished. The first usually refers to
the research and teaching community with Walter Eucken, Franz Böhm,
and Hans Großmann-Doerth as its pivotal members at the University of
Freiburg im Breisgau in the 1930s and 1940s. Furthermore, Walter
Eucken’s disciples Friedrich A. Lutz, Karl Friedrich Maier, Fritz Walter
Meyer and Leonhard Miksch can be included in the Freiburg School.