Social Market Economy Doctrine by Lugwig Erhard


  • Dalia Eidukienė Vilnius Gediminas Technical University


social market economy, neoliberalism, social security, social notion, social development, social politics, transformation of classical liberalism, father state, „firmed community“.


The article discusses a successful rearrangement of the economy which was carried out in German Federal
Republic. It’s „godfather“ became Professor Liudwig Erhard whose personality combined whose theoretical knowledge
and an experience of a head leader of economy. Drastic reforms were performed on his initiative and under
his command. Thanks to these reforms defeated, ruined and disgraced during 10 postwar years Germany threw out
ideological stereotypes and all schemes of planned economy into the dump of history. Besides that it presented to
the world „an economic miracle“ which made Germany a prosperous and powerful state.
Socially orientated conception of market economy, always showing its best result during a short period of time,
was raised into the rank of official GFR doctrine and become the basis of economic programmer or Christian
Democrats Alliance.
The article tells about the neoliberalism credo’s founder – Freiburg’s School.
Particular attention is paid to Professor Walter Eucken and his social notions. Besides that it discusses the
transformational problem of classical liberalism and shows social guides produced by Erhard.
The article pays attention to the role of the state in the terms of social market economy. It discusses the threats
of father state.
The article presents Erhard’s conception of „formed community“ and discusses it’s parallels with the open
community and legal state.