Alexander Rüstow (8 April 1885 – 30 June 1963) was a German
sociologist and
economist
An economist is a professional and practitioner in the social sciences, social science discipline of economics.
The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...
. At the
Colloque Walter Lippmann
The Colloque Walter Lippmann ( English: Walter Lippmann Colloquium), was a conference of intellectuals organized in Paris in August 1938 by French philosopher Louis Rougier. After interest in classical liberalism had declined in the 1920s and 193 ...
in August 1938 he popularised the term
"neoliberalism". He became one of the fathers of the "
Social Market Economy
The social market economy (SOME; ), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model combining a free-market capitalist economic system with social policies and enough re ...
" that shaped the economy of
West Germany
West Germany was the common English name for the Federal Republic of Germany (FRG) from its formation on 23 May 1949 until German reunification, its reunification with East Germany on 3 October 1990. It is sometimes known as the Bonn Republi ...
after
World War II
World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
. Rüstow was the grandnephew of
Wilhelm Rüstow, the grandson of
Cäsar Rüstow and the father of
Dankwart Rustow.
Life
Rüstow was born in
Wiesbaden
Wiesbaden (; ) is the capital of the German state of Hesse, and the second-largest Hessian city after Frankfurt am Main. With around 283,000 inhabitants, it is List of cities in Germany by population, Germany's 24th-largest city. Wiesbaden form ...
in the
Prussian
Prussia (; ; Old Prussian: ''Prūsija'') was a German state centred on the North European Plain that originated from the 1525 secularization of the Prussian part of the State of the Teutonic Order. For centuries, the House of Hohenzoll ...
Province of
Hesse-Nassau
The Province of Hesse-Nassau () was a Provinces of Prussia, province of the Kingdom of Prussia from 1868 to 1918, then a province of the Free State of Prussia until 1944.
Hesse-Nassau was created as a consequence of the Austro-Prussian War of ...
in to the family of a Prussian military officer. 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 Hugo Wilhelm Hensel (17 May 1860, Gvardeysky District, Groß-Barthen, Province of Prussia – 11 November 1930, Erlangen) was a German philosopher.
Biography
Hensel was born in Gvardeysky District, Groß-Barten (now in Gvardeysky District ...
, at the
University of Erlangen
A university () is an institution of tertiary education and research which awards academic degrees in several academic disciplines. ''University'' is derived from the Latin phrase , which roughly means "community of teachers and scholars". Univ ...
, on a philosophical topic,
Russell's paradox
In mathematical logic, Russell's paradox (also known as Russell's antinomy) is a set-theoretic paradox published by the British philosopher and mathematician, Bertrand Russell, in 1901. Russell's paradox shows that every set theory that contains ...
. He then worked at the Teubner publishing house in
Berlin
Berlin ( ; ) is the Capital of Germany, capital and largest city of Germany, by both area and List of cities in Germany by population, population. With 3.7 million inhabitants, it has the List of cities in the European Union by population withi ...
, until 1911, when he started working on his
habilitation
Habilitation is the highest university degree, or the procedure by which it is achieved, in Germany, France, Italy, Poland and some other European and non-English-speaking countries. The candidate fulfills a university's set criteria of excelle ...
, on the knowledge theory of
Parmenides
Parmenides of Elea (; ; fl. late sixth or early fifth century BC) was a Pre-Socratic philosophy, pre-Socratic ancient Greece, Greek philosopher from Velia, Elea in Magna Graecia (Southern Italy).
Parmenides was born in the Greek colony of Veli ...
. He had to interrupt his work though at the outbreak of the
First World War
World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...
, when he volunteered for the
German Army
The German Army (, 'army') is the land component of the armed forces of Federal Republic of Germany, Germany. The present-day German Army was founded in 1955 as part of the newly formed West German together with the German Navy, ''Marine'' (G ...
.
After the war, Rüstow, then still a
socialist
Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
, 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
The Ruhr ( ; , also ''Ruhrpott'' ), also referred to as the Ruhr Area, sometimes Ruhr District, Ruhr Region, or Ruhr Valley, is a polycentric urban area in North Rhine-Westphalia, Germany. With a population density of 1,160/km2 and a populati ...
. 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
Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
became too unfriendly for Rüstow; he was blacklisted in 1933 and fled to Switzerland, where he was offered a chair in economic geography and history at the
University of Istanbul
Istanbul University, also known as University of Istanbul (), is a public research university located in Istanbul, Turkey. Founded by Mehmed II on May 30, 1453, a day after the conquest of Constantinople by the Turks, it was reformed as the fi ...
,
Turkey
Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...
. In Istanbul, he worked on his magnum opus, ''Ortsbestimmung der Gegenwart'' (in English published as ''Freedom and Domination''), a critique of civilization. In 1938 at the
Colloque Walter Lippmann
The Colloque Walter Lippmann ( English: Walter Lippmann Colloquium), was a conference of intellectuals organized in Paris in August 1938 by French philosopher Louis Rougier. After interest in classical liberalism had declined in the 1920s and 193 ...
, it was Rüstow who created the term 'neoliberalism' to separate
new liberalism from
classical liberalism
Classical liberalism is a political tradition and a branch of liberalism that advocates free market and laissez-faire economics and civil liberties under the rule of law, with special emphasis on individual autonomy, limited governmen ...
. Rüstow promoted the concept of the social market economy, and this concept promotes a strong role for the state with respect to the market, which is in many ways different from the ideas which are nowadays connected with the term neoliberalism.
In 1949, Rüstow returned to Germany and obtained a chair at the
University of Heidelberg
Heidelberg University, officially the Ruprecht Karl University of Heidelberg (; ), is a public university, public research university in Heidelberg, Baden-Württemberg, Germany. Founded in 1386 on instruction of Pope Urban VI, Heidelberg is List ...
, where he remained until his retirement in 1956. He died in 1963 at age 78 in Heidelberg.
Ordoliberalism
Together with
Walter Eucken,
Wilhelm Röpke
Wilhelm Röpke (; 10 October 1899 – 12 February 1966) was a German economist and social critic, one of the spiritual fathers of the social market economy. A professor of economics, first in Jena, then in Graz, Marburg, Istanbul, and finall ...
and
Franz Böhm, Rüstow provided the necessary foundational work of
Ordoliberalism
Ordoliberalism is the German variant of economic liberalism that emphasizes the need for government to ensure that the free market produces results close to its theoretical potential.
Ordoliberal ideals became the foundation of the creation of ...
.
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,
* ''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
References
Further reading
* A condensed translation of Alexander Rustow’s three-volume ''Ortsbestimmung der Gegenwart''.
*
External links
*
*
{{DEFAULTSORT:Rustow, Alexander
1885 births
1963 deaths
German economists
German sociologists
German Army personnel of World War I
People from Wiesbaden
People from Hesse-Nassau
German male non-fiction writers
Member of the Mont Pelerin Society