The “New” Crisis of the Liberal Order: Populism, Socioeconomic Imbalances, and the Response of Contemporary Ordoliberalism
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
The “New” Crisis of the Liberal Order: Populism, Socioeconomic Imbalances, and the Response of Contemporary Ordoliberalism
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 139 (2019), Iss. 2–4 : pp. 243–258
10 Citations (CrossRef)
Additional Information
Article Details
Author Details
Dold, Malte, Economics Department, Pomona College, 425 N. College Way, Claremont, CA 91711, USA.
Krieger, Tim, Faculty of Economics and Behavioral Sciences, University of Freiburg, Wilhelmstraße 1b, 79085 Freiburg, Germany.
Cited By
-
Taming Giants: How Ordoliberal Competition Theory Can Address Power in the Digital Age
Küsters, Anselm | Oakes, IsabelJournal of Contextual Economics – Schmollers Jahrbuch, Vol. 141 (2021), Iss. 3 P.149
https://doi.org/10.3790/schm.141.3.149 [Citations: 1] -
Ordoliberalism goes China? A comparison of recent developments in EU and chinese competition law considering the digital economy
Küsters, Anselm
Constitutional Political Economy, Vol. (2023), Iss.
https://doi.org/10.1007/s10602-023-09407-y [Citations: 0] -
Vermögensbildungspolitik
Der Liberalismus braucht ein Update
Krieger, Tim
2021
https://doi.org/10.1007/978-3-658-34057-5_5 [Citations: 0] -
In the maelstrom of crises: The European Union and the ‘Zeitenwende’
Gabrisch, Hubert
Economic Annals, Vol. 68 (2023), Iss. 236 P.7
https://doi.org/10.2298/EKA2336007G [Citations: 0] -
Ordoliberalism in The Epoch of Pandemy
Losoncz, Alpár
Belvedere Meridionale, Vol. 33 (2021), Iss. 3 P.57
https://doi.org/10.14232/belv.2021.3.3 [Citations: 0] -
The ideological use and abuse of Freiburg’s ordoliberalism
Dold, Malte | Krieger, TimPublic Choice, Vol. 195 (2023), Iss. 3-4 P.341
https://doi.org/10.1007/s11127-021-00875-0 [Citations: 6] -
Vermögensbildungspolitik
Der Liberalismus braucht ein Update
Krieger, Tim
2024
https://doi.org/10.1007/978-3-658-44748-9_4 [Citations: 0] -
The renaissance of ordoliberalism in the 1970s and 1980s*
Krieger, Tim | Nientiedt, DanielConstitutional Political Economy, Vol. (2023), Iss.
https://doi.org/10.1007/s10602-023-09411-2 [Citations: 0] -
Stability of the liberal order, moral learning, and constitutional choice: an unresolved tension in James Buchanan’s political economy
Dold, Malte F. | Petersen, MatíasReview of Social Economy, Vol. 81 (2023), Iss. 4 P.672
https://doi.org/10.1080/00346764.2021.1957141 [Citations: 2] -
Walter Lippmann: an institutionalist for our times?
Hargreaves Heap, Shaun P. | Lewis, PaulJournal of Institutional Economics, Vol. 20 (2024), Iss.
https://doi.org/10.1017/S1744137424000298 [Citations: 0]
References
-
Algan, Y., S. Guriev, E. Papaioannou, and E. Passari. 2017. “The European Trust Crisis and the Rise of Populism.” Brookings Papers on Economic Activity 2017 (2): 309 – 400.
Google Scholar -
Anomaly J., G. Brennan, M. C. Munger, and G. Sayre-McCord. 2016. Philosophy, Politics, and Economics: An Anthology. New York: Oxford University Press.
Google Scholar -
Arnorsson, A., G. Zoega. 2018. “On the Causes of Brexit.” European Journal of Political Economy 55: 301 – 23.
Google Scholar -
Autor, D., D. Dorn, L. F. Katz, C. Patterson, and J. Van Reenen. 2017. “The Fall of the Labor Share and the Rise of Superstar Firms.” NBER Working Paper Series No. 23396.
Google Scholar -
Baron, D. 2018. “Who Identifies with the AfD? Explorative Analyses in Longitudinal Perspective.” SOEPpapers on Multidisciplinary Panel Data Research No. 983.
Google Scholar -
Böhm, F. 1960. Reden und Schriften. Karlsruhe: C. F. Müller.
Google Scholar -
Braunberger, G. 2016. “Ordnungsökonomik ist nicht genug. Unsystematische Betrachtungen eines Wirtschaftsjournalisten.” In Neue Ordnungsökonomik, edited by J. Zweynert, S. Kolev, and N. Goldschmidt, 225 – 37. Tübingen: Mohr Siebeck.
Google Scholar -
Buchanan, J. M. 1959. “Positive Economics, Welfare Economics, and Political Economy.” Journal of Law and Economics 2: 124 – 38.
Google Scholar -
Collier, P. 2018. The Future of Capitalism: Facing the New Anxieties. London: Penguin.
Google Scholar -
Dao, M. C., M. M. Das, Z. Koczan, and W. Lian. 2017. Why is Labor Receiving a Smaller Share of Global Income? Theory and Empirical Evidence. Washington: International Monetary Fund.
Google Scholar -
De Mesquita, E. B. 2016. Political Economy for Public Policy. Princeton: Princeton University Press.
Google Scholar -
Dekker, E., & S. Kolev. 2019. “A View from Europe: Austrian Economics, Civil Society, and PPE.” Advances in Austrian Economics 24: 67 – 77.
Google Scholar -
Dold, M. and T. Krieger, eds. 2019. Ordoliberalism and European Economic Policy: Between Realpolitik and Economic Utopia. Abingdon: Routledge.
Google Scholar -
Dold, M. and T. Krieger. 2017a. “Competition or Conflict? Beyond Traditional Ordo-Liberalism.” In Ordoliberalism, Law and the Rule of Economics, edited by C. Joerges and J. Hien, 245 – 60. Oxford: Hart Publishing.
Google Scholar -
Dold, M. and T. Krieger. 2017b. “Ordoliberalism Is Not Responsible for Jihadist Terrorism in Europe: A Reply to Van der Walt.” New Perspectives 25 (2): 105 – 15.
Google Scholar -
Erhard, L. 1957. Wohlstand für alle. Düsseldorf: Econ Verlag.
Google Scholar -
EU Council. 2000. “Schlussfolgerungen des Europäischen Rates Lissabon.” March 23 and 24, 2000.
Google Scholar -
Eucken, W. 2004 [1952]. Grundsätze der Wirtschaftspolitik. Tübingen: Mohr Siebeck.
Google Scholar -
Fuest, C. 2018. “The Third Type of Inter-System Competition: Europe and the Rise of China.” ifo Viewpoint No. 200.
Google Scholar -
Fukuyama, F. 1989. “The End of History?” The National Interest 16: 3 – 18.
Google Scholar -
Gaus, G., C. Favor, and J. Lamont. 2010. Essays on Philosophy, Politics, and Economics: Integration and Common Research Projects. Stanford: Stanford University Press.
Google Scholar -
Gidron, N. and P. A. Hall. 2017. “The Politics of Social Status: Economic and Cultural Roots of the Populist Right.” British Journal of Sociology 68 (S1): S57–S84.
Google Scholar -
Goldin, C. D. and L. F. Katz. 2009. The Race between Education and Technology. Cambridge: Harvard University Press.
Google Scholar -
Guiso, L., H. Herrera, M. Morelli, and T. Sonno. 2017. “Demand and Supply of Populism.” Centre for Economic Policy Research Discussion Paper No. DP11871.
Google Scholar -
Hausman, D., M. McPherson, and D. Satz. 2016. Economic Analysis, Moral Philosophy, and Public Policy. Cambridge: Cambridge University Press.
Google Scholar -
Inglehart, R. and P. Norris. 2017. “Trump and the Populist Authoritarian Parties: The Silent Revolution in Reverse.” Perspectives on Politics 15 (2): 443 – 54.
Google Scholar -
Jackson, B. 2012. “Freedom, the Common Good, and the Rule of Law: Lippmann and Hayek on Economic Planning.” Journal of the History of Ideas 73 (1): 47 – 68.
Google Scholar -
Jansen, S. C. 2009. “Phantom Conflict: Lippmann, Dewey, and the Fate of the Public in Modern Society.” Communication and Critical/Cultural Studies 6 (3): 221 – 45.
Google Scholar -
Kahler, M. and D. A. Lake. 2003. “Globalization and Governance.” In Governance in a Global Economy, edited by M. Kahler and D. Lake, 1 – 30. Princeton: Princeton University Press.
Google Scholar -
Knight, F. H. 1938. “Lippmann’s The Good Society.” Journal of Political Economy 46 (6): 864 – 72.
Google Scholar -
Kolev, S. 2019. “Ordoliberalism’s Embeddedness in the Neoliberalisms of the 1930s and 1940s.” In Ordoliberalism and European Economic Policy: Between Realpolitik and Economic Utopia, edited by M. Dold and T. Krieger, 23 – 38. Abingdon: Routledge.
Google Scholar -
Lippmann, W. 1937. The Good Society. Boston: Little, Brown & Co.
Google Scholar -
Martins, J. O., R. Boarini, H. Strauss, and C. De La Maisonneuve. 2010. “The Policy Determinants of Investment in Tertiary Education.” OECD Journal: Economic Studies 2009 (1): 1 – 37.
Google Scholar -
Mudde, C. and C. R. Kaltwasser. 2017. Populism: A Very Short Introduction. New York: Oxford University Press.
Google Scholar -
Munger, M. C. and M. Villarreal-Diaz. 2019. “The Road to Crony Capitalism.” Independent Review 23 (3): 331 – 44.
Google Scholar -
OECD. 2017. Bridging the Gap: Inclusive Growth 2017 Update Report. Paris: OECD Publishing. http://www.oecd.org/inclusive-growth/Bridging_the_Gap.pdf.
Google Scholar -
Organ, J. 2017. “EU Citizen Participation, Openness and the European Citizens Initiative: The TTIP Legacy.” Common Market Law Review 54 (6): 1713 – 47.
Google Scholar -
Ostry, M. J. D., M. A. Berg, and M. C. G. Tsangarides. 2014. Redistribution, Inequality, and Growth. Washington: International Monetary Fund.
Google Scholar -
Posner, E. A. and E. G. Weyl. 2018. Radical Markets: Uprooting Capitalism and Democracy for a Just Society. Princeton: Princeton University Press.
Google Scholar -
Richter, W. F. 2004. “Delaying Integration of Immigrant Labor for the Purpose of Taxation.” Journal of Urban Economics 55: 597 – 613.
Google Scholar -
Rodrik, D. 1998. “Why Do More Open Economies Have Bigger Governments?” Journal of Political Economy 106 (5): 997 – 1032.
Google Scholar -
Rodrik, D. 2018. “Populism and the Economics of Globalization.” Journal of International Business Policy 1: 12 – 33.
Google Scholar -
Sinn, H.-W. 2002. The New Systems Competition. Oxford: Blackwell.
Google Scholar -
Stiglitz, J. E. 2012. The Price of Inequality: How Today’s Divided Society Endangers our Future. New York: W. W. Norton.
Google Scholar -
The Economist. 2018. “The Economist at 175: Reinventing Liberalism for the 21st Century.” September 15, 45 – 54.
Google Scholar -
Van der Weide, R. and B. Milanovic. 2018. “Inequality is Bad for Growth of the Poor (But Not For That of the Rich).” World Bank Economic Review 32 (3): 507 – 30.
Google Scholar -
Vanberg, V. 1997a. “Die normativen Grundlagen von Ordnungspolitik.” ORDO Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft 48: 707 – 26.
Google Scholar -
Vanberg, V. 1997b. “Subsidiarity, Responsive Government and Individual Liberty.” In Political Institutions and Public Policy, edited by B. Steunenberg and F. Van Vught, 189 – 203. Dordrecht: Springer.
Google Scholar -
Venables, A. J. 2018. “Globalization and Urban Polarization.” Review of International Economics 26 (5): 981 – 96.
Google Scholar
Abstract
In the face of the “new” crisis of liberalism, our paper follows the spirit of Walter Lippmann’s The Good Society and argues for a renewal of (ordo)?liberal thinking. Similar to Lippmann, we argue that our current liberal economic order is unfit to deal with fundamental social asymmetries. The benefits of economic integration are distributed unevenly with urban economic and political elites as main beneficiaries and supporters of the current order, while neglecting less-skilled, rural workers. In this paper, we argue for a contemporary ordoliberalism that takes up this distributional challenge. In spite of recurrent criticism of its value-laden nature, we argue that the normativity of ordoliberalism is actually an asset in the current debate on populism.