Alexander Rüstow
Encyclopedia
Alexander Rüstow was a German
sociologist and economist
. He originated the term neoliberalism
meant as a synonym for Ordoliberalism
but the term has undergone a change of meaning. He was one of the fathers of the "Social Market Economy
" that shaped the economy of West-Germany after World War II
. He is the grandnephew of Friedrich Wilhelm Rüstow
, the grandson of Cäsar Rüstow and the father of Dankwart Rustow
.
in the Prussian
Province of Hesse-Nassau. From 1903 till 1908, he studied mathematics, physics, philosophy, philology, law and economics, at the universities of Göttingen, Munich and Berlin. In 1908, he obtained his doctorate under Paul Hensel
, at the University of Erlangen
, on a mathematical topic, Russell's paradox
. He then worked at the Teubner publishing house in Berlin
, until 1911, when he started working on his habilitation
, on the knowledge theory of Parmenides
. He had to interrupt his work though at the outbreak of the First World War, when he volunteered for the German Army
.
After the war, Rüstow, then still a socialist
, participated in the November Revolution, and obtained a post at the Ministry of Economic Affairs, working on the nationalization process of the coal industry in the Ruhr Area
. Disillusioned with socialist planning
, he started working for the VdMA, the German Engineering Federation in 1924. The engineering companies in Germany suffered much by the protected and subsidized coal and mine industry.
In the 1930s, the climate in Germany
became too unfriendly for Rüstow, and he obtained a chair in economic geography and history at the University of Istanbul, Turkey
, where he worked at his magnum opus, Ortsbestimmung der Gegenwart (in English published as Freedom and Domination), a critique of civilization. In 1938 at the Colloque Walter Lippmann
, it was Rüstow who created the term neoliberalism.
In 1949, Rüstow would return to Germany, where he would obtain a chair at the University of Heidelberg, where he would stay until his retirement in 1956. He died in 1963 at age 78 in Heidelberg.
and Franz Böhm
, Rüstow provided the necessary foundational work of Ordoliberalism
(German neoliberalism
).
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
sociologist and economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
. He originated the term neoliberalism
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...
meant as a synonym for Ordoliberalism
Ordoliberalism
Ordoliberalism is a school of liberalism that emphasised the need for the state to ensure that the free market produces results close to its theoretical potential . The theory was developed by German economists and legal scholars such as Walter Eucken, Franz Böhm, Hans Grossmann-Doerth and Leonhard...
but the term has undergone a change of meaning. He was one of the fathers of the "Social Market Economy
Social market economy
The social market economy is the main economic model used in West Germany after World War II. It is based on the economic philosophy of Ordoliberalism from the Freiburg School...
" that shaped the economy of West-Germany after World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. He is the grandnephew of Friedrich Wilhelm Rüstow
Friedrich Wilhelm Rüstow
Friedrich Wilhelm Rüstow was a Prussian-born Swiss soldier and military writer.Rüstow was born in Brandenburg an der Havel in the Province of Brandenburg. He entered the Prussian Army and served for some years, until the publication of Der deutsche Militärstaat vor und während der Revolution...
, the grandson of Cäsar Rüstow and the father of Dankwart Rustow
Dankwart Rustow
Dankwart Alexander Rustow was a professor of political science and sociology. He is perhaps best known as the 'father of transitology,' a school of thought in the field of democratization studies...
.
Life
Rüstow was born in WiesbadenWiesbaden
Wiesbaden is a city in southwest Germany and the capital of the federal state of Hesse. It has about 275,400 inhabitants, plus approximately 10,000 United States citizens...
in the Prussian
Kingdom of Prussia
The Kingdom of Prussia was a German kingdom from 1701 to 1918. Until the defeat of Germany in World War I, it comprised almost two-thirds of the area of the German Empire...
Province of Hesse-Nassau. From 1903 till 1908, he studied mathematics, physics, philosophy, philology, law and economics, at the universities of Göttingen, Munich and Berlin. In 1908, he obtained his doctorate under Paul Hensel
Paul Hensel
----Paul Hugo Hensel was a German philosopher, son of the landowner and entrepreneur Sebastian Hensel, brother of the mathematician Kurt Hensel , grandson of the composer Fanny Mendelssohn and the painter Wilhelm Hensel, and a descendant of the philosopher Moses Mendelssohn.Hensel was born in...
, at the University of Erlangen
Friedrich-Alexander-University, Erlangen-Nuremberg
The Universität Erlangen Nürnberg is a university in the cities of Erlangen and Nuremberg in Bavaria, Germany. It is the second largest state university in Bavaria, having five Schools, 308 chairs, and 12,000 employees. There are 28,735 students enrolled at the university, of which about 2/3 are...
, on a mathematical topic, Russell's paradox
Russell's paradox
In the foundations of mathematics, Russell's paradox , discovered by Bertrand Russell in 1901, showed that the naive set theory created by Georg Cantor leads to a contradiction...
. He then worked at the Teubner publishing house in Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...
, until 1911, when he started working on his habilitation
Habilitation
Habilitation is the highest academic qualification a scholar can achieve by his or her own pursuit in several European and Asian countries. Earned after obtaining a research doctorate, such as a PhD, habilitation requires the candidate to write a professorial thesis based on independent...
, on the knowledge theory of Parmenides
Parmenides
Parmenides of Elea was an ancient Greek philosopher born in Elea, a Greek city on the southern coast of Italy. He was the founder of the Eleatic school of philosophy. The single known work of Parmenides is a poem, On Nature, which has survived only in fragmentary form. In this poem, Parmenides...
. He had to interrupt his work though at the outbreak of the First World War, when he volunteered for the German Army
German Army
The German Army is the land component of the armed forces of the Federal Republic of Germany. Following the disbanding of the Wehrmacht after World War II, it was re-established in 1955 as the Bundesheer, part of the newly formed West German Bundeswehr along with the Navy and the Air Force...
.
After the war, Rüstow, then still a socialist
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
, participated in the November Revolution, and obtained a post at the Ministry of Economic Affairs, working on the nationalization process of the coal industry in the Ruhr Area
Ruhr Area
The Ruhr, by German-speaking geographers and historians more accurately called Ruhr district or Ruhr region , is an urban area in North Rhine-Westphalia, Germany. With 4435 km² and a population of some 5.2 million , it is the largest urban agglomeration in Germany...
. Disillusioned with socialist planning
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
, he started working for the VdMA, the German Engineering Federation in 1924. The engineering companies in Germany suffered much by the protected and subsidized coal and mine industry.
In the 1930s, the climate in Germany
Nazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...
became too unfriendly for Rüstow, and he obtained a chair in economic geography and history at the University of Istanbul, Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
, where he worked at his magnum opus, Ortsbestimmung der Gegenwart (in English published as Freedom and Domination), a critique of civilization. In 1938 at the Colloque Walter Lippmann
Colloque Walter Lippmann
The Colloque Walter Lippmann was a meeting of intellectuals organized in Paris in August 1938 by French philosopher Louis Rougier. After the 1920s and 1930s saw a decline in the interest for classical liberalism the aim was to construct a new Liberalism as a rejection of collectivism, socialism and...
, it was Rüstow who created the term neoliberalism.
In 1949, Rüstow would return to Germany, where he would obtain a chair at the University of Heidelberg, where he would stay until his retirement in 1956. He died in 1963 at age 78 in Heidelberg.
Ordoliberalism
Together with Walter EuckenWalter Eucken
Walter Eucken was a German economist and father of ordoliberalism. His name is closely linked with the development of the "social market economy".-Life:...
and Franz Böhm
Franz Böhm
Franz Böhm was a German politician, lawyer, and economist.-Early Life:Franz Böhm was born on 16 February 1895 in Konstanz...
, Rüstow provided the necessary foundational work of Ordoliberalism
Ordoliberalism
Ordoliberalism is a school of liberalism that emphasised the need for the state to ensure that the free market produces results close to its theoretical potential . The theory was developed by German economists and legal scholars such as Walter Eucken, Franz Böhm, Hans Grossmann-Doerth and Leonhard...
(German neoliberalism
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...
).
Work
- Der Lügner. Theorie, Geschichte und Auflösung des Russellschen Paradoxons, 1910 (thesis)
- Schutzzoll oder Freihandel?, 1925
- Das Für und Wider der Schutzzollpolitik, 1925
- Das Versagen des Wirtschaftsliberalismus, 1945, Republished in 2001, ISBN 3895183490
- Zwischen Kapitalismus und Kommunismus, 1949
- Das Versagen des Wirtschaftsliberalismus, 2nd edition, 1950
- Ortsbestimmung der Gegenwart. Eine universalgeschichtliche Kulturkritik, ("Determination of the Present's Location"), 3 Volumes, 1950–1957
- Volume 1: Ursprung der Herrschaft ("Origin of Rule")
- Volume 2: Weg der Freiheit ("March of Freedom")
- Volume 3: Herrschaft oder Freiheit? ("Rule or Freedom")
- Wirtschaft und Kultursystem, 1955
- Die Kehrseite des Wirtschaftswunders, 1961