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Liberalism and the Welfare StateEconomists and Arguments for the Welfare State$
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Roger E. Backhouse, Bradley W. Bateman, Tamotsu Nishizawa, and Dieter Plehwe

Print publication date: 2017

Print ISBN-13: 9780190676681

Published to Oxford Scholarship Online: July 2017

DOI: 10.1093/acprof:oso/9780190676681.001.0001

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The Initiative for a New Social-Market Economy and the Transformation of the German Welfare Regime after Unification

The Initiative for a New Social-Market Economy and the Transformation of the German Welfare Regime after Unification

Chapter:
(p.131) 7 The Initiative for a New Social-Market Economy and the Transformation of the German Welfare Regime after Unification
Source:
Liberalism and the Welfare State
Author(s):

Daniel Kinderman

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780190676681.003.0008

This chapter focuses on how business interests and neoliberal ideas have come together in Germany during the past two decades. It is based on a detailed analysis of the INSM, a large-scale campaign founded and funded by the metal industry employers’ association Gesamtmetall in 2000 to shape public opinion. Since its origination, the INSM has launched a systematic attack on the German welfare state. As part of a business-led public relations campaign, the purpose of the INSM is to propagate market-oriented reforms and influence public opinion and policymaking rather than to develop new economic ideas. Nevertheless, a group of economists associated with the Mont Pèlerin Society have actively supported and campaigned for the INSM. The INSM exposes a serious problem with the academic literature that characterizes Germany as an exemplar of “nonliberal” capitalism: the positions of leading German business officials and economists are fundamentally and unmistakably liberal.

Keywords:   economists, Mont Pèlerin Society, neoliberalism, think tank, welfare state

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