SOCIAL DEMOCRACY READER 2 Simon Vaut, Carsten Schwäbe et al. Economics and Social Democracy SOCIAL DEMOCRACY READER 2 NEW 4th, Revised Edition Economics and Social Democracy ISBN 978-3-96250-310-9 4th revised edition Published by Friedrich-Ebert-Stiftung German Edition: Political Academy, Bonn, August 2018 English Edition: Division for International Cooperation, Berlin, March 2019 Editors: Jochen Dahm, Carsten Schwäbe, Markus Trömmer, Simon Vaut Contact:
[email protected] /
[email protected] Printing: Druckerei Brandt GmbH, Bonn Layout and composition: DIE.PROJEKTOREN, Berlin / Cover photo: Nyul/Hans12/Chesse Translated by James Patterson The authors of the individual sections are responsible for the contents of this publication. The opinions expressed do not necessarily reflect the views of the Friedrich-Ebert-Stiftung in all respects. Commercial use of FES publications in all media is prohibited without the written permission of the FES. SOCIAL DEMOCRACY READER 2 Simon Vaut, Carsten Schwäbe et al. Economics and Social Democracy CONTENTS Foreword 4 1. Introduction 6 2. Foundational Economic Theories 9 2.1. The Classics of Economic Theory 12 2.2. Ideal-Types of Economic Theory 29 2.3. Key Tasks and Challenges of Economic Policy Today 36 2.4. More Equality: Economically Warranted, Politically Necessary, Socially Just! 38 2.5. New Visionaries: Towards a Pluralistic Economics 42 3. Economic Systems and Economic Orders 56 3.1. Capitalism and Democracy 56 3.2. Coordinated and Uncoordinated Capitalism 64 4. Economic Policy Orientations of Social Democracy 68 4.1. Fundamental Rights and Values of Social Democracy 68 4.2. Economic Policy Principles 75 4.3.