Social Market Economy

Social Market Economy in Europe

Description of Social market economy

The Concise Encyclopedia of the European Union describes social market economy in the following terms: [1] A somewhat vague term, originally associated with the legendary German economics minister Ludwig Erhard, to denote a market economy which is nevertheless concerned with social issues. Subsequently the expression came to describe a mixed economy with a high level of state participation. By the 1990s, it was on its way back towards its original meaning – an economy in which the free play of market forces is constrained by regulation and social security features. As a dedicated free marketeer, Erhard was not best pleased to see his phrase taken over by the centre left.

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Notas y References

  1. Based on the book “A Concise Encyclopedia of the European Union from Aachen to Zollverein”, by Rodney Leach (Profile Books; London)

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