Justificatory Fables of Ordoliberalism: Laissez-faire and the “Third Way”

Abstract

This article critically examines two conceptualisations of ordoliberalism. In one, it is defined, together with neoliberalism, against 19th-century liberalism (in its social liberal and laissez-faire variants). This reading was common among ordoliberals themselves, and early neoliberals such as Friedrich von Hayek, as well as among critics, notably Michel Foucault. In another, ordoliberalism is contrasted to neoliberalism, with the latter presumed to be a species of laissez-faire economics. This reading is commonly accompanied by the supposition that ordoliberalism represents a “Third Way” between capitalism and socialism, or between laissez-faire liberalism and state planning. The main body of this contribution presents a critical analysis of both positions, by way of analysis of ordoliberal texts and a history of the discourse of laissez-faire.