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Kennesaw State University

Conflict economics

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The Social Market Economy As A Formula For Peace, Prosperity, And Sustainability, Almuth D. Merkel May 2021

The Social Market Economy As A Formula For Peace, Prosperity, And Sustainability, Almuth D. Merkel

Doctor of International Conflict Management Dissertations

The social market economy was developed in Germany during the interwar period amidst political and economic turmoil. With clear demarcation lines differentiating it from socialism and laissez-faire capitalism, the social market economy became a formula for peace and prosperity for post WWII Germany. Since then, the success of the social market economy has inspired many other countries to adopt its principles. Drawing on evidence from economic history and the history of economic thought, this thesis first reviews the evolution of the fundamental principles that form the foundation of social-market economic thought. Blending the micro-economic utility maximization framework with traditional growth …