Page 76 - The Making of the German Post-war Economy

THE COLOGNE SCHOOL 49

Oppenheimer and especially Wilhelm Röpke, like Erhard a student of
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Oppenheimer, was his source of inspiration. Erhard perceived Röpke’s
books as works of revelation and considered the economist a brother in
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spirit. On 17 August 1948, however, Erhard referred to Müller-Armack,
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whom he met after some contact for the first time at the latter’s residence
in Vreden (Münsterland) in 1940 and by whom he was strongly impressed
most of all not as a theorist, but instead as one who wanted to transfer
theory into practice, and his concept of the Social Market Economy.
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Soon after, at the second party congress of the CDU in the British zone in
Recklinghausen on 28 August 1948, Erhard circumscribed the concept as
a ‘socially committed market economy’. Whereas most neo-liberal
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economists viewed the concept not only as an economic path between the
Scylla of an untamed pure laissez-faire capitalism and the Charybdis of a
collectivist planned economy, but also as a holistic and democratic social
order, Erhard and in particular Müller-Armack, however, emphasised
public acceptance and civic engagement as prerequisites for the success of
the socio-economic model. For instance, Müller-Armack stressed that by
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‘more socialism’ he meant the social engagement for and with the people.
Equally, Ludwig Erhard pointed out that the principles of the Social
Market Economy could only be achieved if the public was determined to
give them priority. This conceptual imperative had in turn an effect on
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the communication of the socio-economic concept.
Given that the Social Market Economy required public debate, for its
acceptance or rejection, its discussion went beyond an academic and
political audience, e.g. within the Mont Pèlerin Society, the Verein für
Socialpolitik, or at conventions of political parties. Even the academic
publications by Alfred Müller-Armack and Ludwig Erhard evidently
addressing so-called ‘opinion leaders’, i.e. academics, the Allied military
authorities, journalists, politicians and representatives of various
associations and industry, ultimately aimed to influence and direct public
opinion. Alfred Müller-Armack noted that

if it is said that only 30 per cent of the electorate understands the
sense of the Social Market Economy, then I reply “How is it with the
socialist theories? Are they better comprehended?” In my opinion 30
per cent of a population is quite a lot [...]. This world is ruled by a
minority.
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Although appealing to an opinion-leading minority, the general public
was the final addressee and Müller-Armack and Erhard applied various
methods and media in order to inform and gain credibility in their socio-
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economic programme. In doing so, despite the potential inwardness of