History
At first controversial, the model became increasingly popular in West Germany and Austria, since in both states economic success (Wirtschaftswunder) was identified with it. From the 1960s, the social market economy was the main economic model in mainland Western Europe, pursued by administrations of both the centre-right (usually led by some Christian democratic parties) and the centre-left (usually led by some social democratic parties).
Southern European states preferred large-scale public services, high salary growth rates and a low unemployment rate over low inflation, low national debt, low public expenditure and other economic health policies.
The term “Social market economy” is still the common economic basis of most political parties in Germany and a commitment to some form of social market economy is present in the Treaty of Lisbon amending the Treaty on European Union and the Treaty establishing the European Community, signed at Lisbon, 13 December 2007.
Read more about this topic: Social Market Economy
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—Susan Sontag (b. 1933)
“The best history is but like the art of Rembrandt; it casts a vivid light on certain selected causes, on those which were best and greatest; it leaves all the rest in shadow and unseen.”
—Walter Bagehot (1826–1877)
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—David Hume (1711–1776)