Social Contract or Expert Rule: Capitalism, Democratic Politics, Economic Expertise, and the Battle against “Populism”

The German Wirtschaftswunder was not the result of economic expertise applied by Ludwig Erhard to postwar West Germany. There is no universally applicable theory-cum-practice of a "social market economy." A capitalist economy is a political economy that requires an – always fragile – political settlement between capital and labour, one that needs to be re-negotiated on a current basis in the light of changing relations of power between the classes. To the extent that this requires expertise, it is the expertise of political practitioners, not of economists."The economy" is not a second nature but a social battlefield.