Monday, August 25, 2003


The failure of the "social market" economy: Wilhelm Roepke is often credited as the theoretical architect of Germany's postwar economic 'miracle.' Few know that he was actually quite critical of Germany's attempt to fuse a huge welfare State with a free market economy. He thought that the system would fail in the long run. The present big economic problems in Germany suggest that he was right.

Newspapers in Germany have just listed things people on state benefits can get free. They include football boots, Jogging suits, swimming trunks, bras, slippers, wedding rings -- and Viagra. (According to the Brisbane Sunday Mail of August 24, 2003, p. 57). No wonder Germany has 11% unemployment. Why work?


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