Studies in Economic Ethics and Philosophy Series Editor Peter Koslowski Editorial Board F. Neil Brady James M. Buchanan Richard De George Jon Elster Amitai Etzioni Gerard Gafgen Serge-Christophe Kolm Michael S. McPherson Yuichi Shionoya Philippe Van Parijs
Springer-Verlag Berlin Heidelberg GmbH
Peter Koslowski (Ed.) The Theory of Capitalism in the German Economic Tradition Historism, Or do-liberalism, Critical Theory, Solidarism With 2 Tables i Springer
Prof. Dr. Dr. h.c. Peter Koslowski Centre for Ethical Economy and Business Culture The Hannover Institute of Philosophical Research Gerberstr. 26 D-30169 Hannover Germany E-mail: P. Koslowski@fiph.uni-hannover.de Printed with the support of the Fritz Thyssen Stiftung Koln ISBN 978-3-642-08592-5 Cataloging-in-Publication Data applied for Die Deutsche Bibliothek- CIP-Einheitsaufnahme The theory of capitalism in the German economic tradition: historism, ordo-liberalism, critical theory, solidarism I Peter Koslowski (ed.). (Studies in economic ethics and philosophy) ISBN 978-3-642-08592-5 ISBN 978-3-662-04084-3 (ebook) DOI 10.1007/978-3-662-04084-3 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. Springer-Verlag Berlin Heidelberg 2000 Originally published by Springer-Verlag Berlin Heidelberg New York in 2000 Softcover reprint of the hardcover 1st edition 2000 The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Hardcover Design: Erich Kirchner, Heidelberg SPIN 10749038 42/2202-5 4 3 2 1 o - Printed on acid-free paper
Preface The theory of capitalism and of the economic order is the central topic of the German economic tradition in the 20th century. Capitalism has not only been the topic for Marxist economics and for the Frankfurt School but also for the Historical School and for the postmarxist theory of capitalism in Ordo- and Neo-Liberalism as well as in Solidarism. The question of the foundations of the economic order of the market economy and of capitalism as well as the problem whether a third path between capitalism and socialism is possible occupied this tradition from the Historical School to Ordo Liberalism and the theory of the social market economy. The theory of capitalism and of the social market economy as well as the critique and reform developed in this theoretical tradition is important for the theory of economic systems as well as for today's problems of the economic order. Its relevance for the present world economy is visible in the discussions whether there exist different models of capitalism and whether they can be described as the Anglo-American and as the Rhenish model of capitalism influenced by the thought of the German economic tradition. Michel Albert, the author of this classification, gave the key-word in his book Capitalism against Capitalism. The papers of this book can help to clarify this debate by giving a first hand introduction to some of the main economic thinkers of capitalism. With this third volume, the project "Economics and Ethics in the Historical School. Achievements and Present Relevance" completes its series of books on the Historical School of Economics. The first two volumes are The Theory of Ethical Economy in the Historical School. Wilhelm Roscher, Lorenz von Stein, Gustav Schmoller, Wilhelm Dilthey and Contemporary Theory (1995, reprinted 1997) and Methodology of the Social Sciences, Ethics, and Economics in the Newer Historical School. From Max Weber and Rickert to Sombart and Rothacker (1997). They are complemented by the book Modem Economic Ethics and Business Ethics (1999), a comparative study of contemporary approaches to economic ethics and business ethics in Germany and Europe on the one hand and the United States on the other hand. All the three volumes mentioned have been published in the
PREFACE series "Studies in Economic Ethics and Philosophy", Berlin, New York, Tokyo (Springer-Verlag), and edited by Peter Koslowski. The project "Economics and Ethics in the Historical School. Achievements and Present Relevance" is organised by the Centre for Ethical Economy and Business Culture - Centrum fiir Ethische Okonomie und Wirtschaftskultur, The Hannover Institute of Philosophical Research - Forschungsinstitut fiir Philosophie Hannover, Hannover, Germany, and supported by the Fritz Thyssen Stiftung Koln, Germany. With this completion of the studies on the Historical School of Economics and of the German economic tradition, the project will be extended to "The Historical School. Economic Ethics, Theory of History, Law, and Political Science in the German Human Sciences Tradition". The project will widen its scope in the years 2000 and 200 1 by the philosophy and theory of history, by the theory of law, and by the theory of politics and the state. The volume at hand publishes the proceedings of the conference "Economic Ethics and the Theory of Capitalism in the German Tradition of Economics: Historism, Ordo-Liberalism, Critical Theory, Solidarism", held at Marienrode near Hannover, Germany, on 29 October to 1 November 1997. The conference formed the "Fifth Annual SEEP-Conference oneconomic Ethics and Philosophy 1997". A special word of gratitude is due the Fritz Thyssen Stiftung whose financial support made the conference and the printing of this book possible. Hannover, October 1999 Peter Koslowski VI
Contents Preface...,... V Part One Theory of Capitalism, Historism, and Economics in Joseph Schumpeter, Emil Lederer, and Franz Oppenheimer Chapter 1 Joseph Schumpeter and the German Historical School YUICHI SHIONOYA... 3 Discussion Summary... 24 Chapter 2 Emil Lederer (1882-1939): Economical and Sociological Analyst and Critic of Capitalist Development HARALD HAGEMANN... 26 Discussion Summary... 52 Chapter 3 Franz Oppenheimer's Theory of Capitalism and of a Third Path DIETER HASELBACH... 54
CONTENTS Discussion Summary... 87 Part Two The Theory of Capitalism, the Historical School, and the Theory of the Social Market Economy in Ordo-Liberalism and N eo-liberalism: Walter Eucken, Alfred Miiller-Armack, Franz Bohm, Friedrich Hayek Chapter 4 Walter Eucken (1891-1950) and the Historical School HELGE PEUKERT... 93 Discussion Summary... 146 Chapter 5 Franz Bohm and the Theory of the Private Law Society KNUT WOLFGANG NORR... 148 Discussion Summary... 189 Chapter 6 Alfred Miiller-Armack- Economic Policy Maker and Sociologist of Religion CHRISTIAN W ATRIN... 192 Discussion Summary... 221 VIII
CONTENTS Chapter 7 The Market Economy and the State. Hayekian and Ordoliberal Conceptions MANFRED E. STREIT and MICHAEL WOHLGEMUTH... 224 Discussion Summary... 270 Part Three The Critique of Capitalism in Hilferding and in the Frankfurt School Chapter 8 Rudolf Hilferding's Theory of Finance Capitalism and Today's World Financial Markets JONAS ZONINSEIN... 275 Discussion Summary... 305 Chapter 9 The Early Frankfurt School Critique of Capitalism: Critical Theory Between Pollock's "State Capitalism" and the Critique of Instrumental Reason HARRY F. DAHMS... 309 Discussion Summary... 362 IX
CONTENTS Part Four The Theory and Critique of Capitalism and Economic Ethics in Solidarism (Christian Social Thought): Heinrich Pesch and Gustav Gundlach Chapter 10 Solidarism, Capitalism, and Economic Ethics in Heinrich Pesch PETERKOSLOWSKI... 371 Discussion Summary... 395 Chapter 11 Theory and Critique of Capitalism in Gustav Gundlach ANTON RAUSCHER... 397 Discussion Summary... 413 Part Five Historism in Other Schools of Economics Chapter 12 Intensive and Extensive Mobilisation in the Japanese Economy: An Interpretation of Japanese Capitalism in Historical Perspective KIICHIRO YAGI... 419 Discussion Summary... 447 X
CONTENTS Chapter 13 The Historical School in Sweden: A Sketch HANS DE GEER... 449 Discussion Summary... 462 Part Six Historism in Economic Law Chapter 14 Jurisprudence, History, National Economics After 1850 SmYLLE HoFER... 467 Discussion Summary... 504 Part Seven Historism, Relativism, and the Critique of Historicism Chapter 15 Karl Popper's Critique of Historicism, the Historical School, and the Contemporary Debate ADAM J. CHMIELEWSKI... 509 Discussion Summary... 532 XI
CONTENTS Chapter 16 Does Historism Mean Relativism? Remarks on the Debate on Historism in the German Political Economy of the Late 19th Century ANNETIE WITIKAU-HORGBY... 534 Discussion Summary... 558 List of Authors and Discussants... 561 Index of Names... 563 XII