IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_10888.html
   My bibliography  Save this paper

Market Democracy, Rising Populism, and Contemporary Ordoliberalism

Author

Listed:
  • Malte Dold
  • Tim Krieger

Abstract

Populist movements increasingly challenge liberal Western market democracies. Populism can be explained only in part by phenomena like globalization and digitization producing winners and losers in economic terms. Growing feelings of alienation from the market-democratic system and the perceived loss of autonomy within the political system contribute to rising populism as well. In this chapter, we ask whether elements of public deliberation may be a means to reasonably responding to the populist challenge by strengthening citizen sovereignty in addition to consumer sovereignty. Ordoliberalism, as a specific form of liberalism that aims at achieving both a ‘functioning and humane order’ within a system of ‘interdependent orders’, is particularly apt to embrace the idea of public deliberation if it is rules-based.

Suggested Citation

  • Malte Dold & Tim Krieger, 2024. "Market Democracy, Rising Populism, and Contemporary Ordoliberalism," CESifo Working Paper Series 10888, CESifo.
    • Handle: RePEc:ces:ceswps:_10888
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10888.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    2. Hans Gersbach, 2022. "New Forms of Democracy," CESifo Working Paper Series 10134, CESifo.
    3. Krieger, Tim & Meierrieks, Daniel, 2016. "Political capitalism: The interaction between income inequality, economic freedom and democracy," European Journal of Political Economy, Elsevier, vol. 45(C), pages 115-132.
    4. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    5. Taylor, Robert S., 2017. "Exit Left: Markets and Mobility in Republican Thought," OUP Catalogue, Oxford University Press, number 9780198798736.
    6. Malte Dold & Tim Krieger, 2023. "The ideological use and abuse of Freiburg’s ordoliberalism," Public Choice, Springer, vol. 195(3), pages 341-361, June.
    7. Malte Dold & Tim Krieger, 2019. "The “New” Crisis of the Liberal Order: Populism, Socioeconomic Imbalances, and the Response of Contemporary Ordoliberalism," Journal of Contextual Economics (JCE) – Schmollers Jahrbuch, Duncker & Humblot, Berlin, vol. 139(2–4), pages 243-258.
    8. Anthony J. Venables, 2018. "Globalization and urban polarization," Review of International Economics, Wiley Blackwell, vol. 26(5), pages 981-996, November.
    9. Malte F. Dold & Matías Petersen, 2023. "Stability of the liberal order, moral learning, and constitutional choice: an unresolved tension in James Buchanan’s political economy," Review of Social Economy, Taylor & Francis Journals, vol. 81(4), pages 672-698, October.
    10. Charles Delmotte & Malte Dold, 2022. "Dynamic preferences and the behavioral case against sin taxes," Constitutional Political Economy, Springer, vol. 33(1), pages 80-99, March.
    11. Daniel Nientiedt & Ekkehard A. Köhler, 2016. "Liberalism and democracy — a comparative reading of Eucken and Hayek," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(6), pages 1743-1760.
    12. Bryan Caplan, 2007. "Introduction to The Myth of the Rational Voter: Why Democracies Choose Bad Policies," Introductory Chapters, in: The Myth of the Rational Voter: Why Democracies Choose Bad Policies, Princeton University Press.
    13. Fabian, Mark & Breunig, Robert & De Neve, Jan-Emmanuel, 2020. "Bowling with Trump: Economic Anxiety, Racial Identification, and Well-Being in the 2016 Presidential Election," IZA Discussion Papers 13022, Institute of Labor Economics (IZA).
    14. Scott E. Page, 2007. "Prologue to The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies," Introductory Chapters, in: The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies, Princeton University Press.
    15. Lars P. Feld & Ekkehard A. Köhler, 2023. "Standing on the shoulders of giants or science? Lessons from ordoliberalism," Public Choice, Springer, vol. 195(3), pages 197-211, June.
    16. Vanberg, Viktor J., 2005. "Market and state: the perspective of constitutional political economy," Journal of Institutional Economics, Cambridge University Press, vol. 1(1), pages 23-49, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Malte Dold & Tim Krieger, 2023. "The ideological use and abuse of Freiburg’s ordoliberalism," Public Choice, Springer, vol. 195(3), pages 341-361, June.
    2. Gerring, John & Thacker, Strom C. & Lu, Yuan & Huang, Wei, 2015. "Does Diversity Impair Human Development? A Multi-Level Test of the Diversity Debit Hypothesis," World Development, Elsevier, vol. 66(C), pages 166-188.
    3. Malte Dold & Tim Krieger, 2019. "The “New” Crisis of the Liberal Order: Populism, Socioeconomic Imbalances, and the Response of Contemporary Ordoliberalism," Journal of Contextual Economics (JCE) – Schmollers Jahrbuch, Duncker & Humblot, Berlin, vol. 139(2–4), pages 243-258.
    4. Krieger, Tim & Nientiedt, Daniel, 2022. "The renaissance of ordoliberalism in the 1970s and 1980s," Discussion Paper Series 2022-05, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    5. Alexander William Salter, 2016. "Post-Cameralist Governance: Towards a Robust Political Economy of Bureaucracy," Economic Affairs, Wiley Blackwell, vol. 36(3), pages 294-308, October.
    6. Rode, Martin & Sáenz de Viteri, Andrea, 2018. "Expressive attitudes to compensation: The case of globalization," European Journal of Political Economy, Elsevier, vol. 54(C), pages 42-55.
    7. repec:wly:soecon:v:80:4:y:2014:p:926-937 is not listed on IDEAS
    8. Jan Schnellenbach, 2015. "Does classical liberalism imply an evolutionary approach to policy-making?," Journal of Bioeconomics, Springer, vol. 17(1), pages 53-70, April.
    9. Snower, Dennis J. & Bosworth, Steven J., 2021. "Economic, social and political fragmentation: Linking knowledge-biased growth, identity, populism and protectionism," European Journal of Political Economy, Elsevier, vol. 67(C).
    10. Marta Estellés & Jordi Castellví, 2020. "The Educational Implications of Populism, Emotions and Digital Hate Speech: A Dialogue with Scholars from Canada, Chile, Spain, the UK, and the US," Sustainability, MDPI, vol. 12(15), pages 1-16, July.
    11. Randall G. Holcombe, 2018. "Checks and Balances: Enforcing Constitutional Constraints," Economies, MDPI, vol. 6(4), pages 1-12, October.
    12. Tito Boeri & Prachi Mishra & Chris Papageorgiou & Antonio Spilimbergo, 2021. "Populism and Civil Society," Economica, London School of Economics and Political Science, vol. 88(352), pages 863-895, October.
    13. Alexander William Salter, 2016. "Political Property Rights and Governance Outcomes: A Theory of the Corporate Polity," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 31(Winter 20), pages 1-20.
    14. Andrew T. Young, 2019. "How Austrians can contribute to constitutional political economy (and why they should)," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(4), pages 281-293, December.
    15. Jon Atwell & Marlon Twyman II, 2023. "Metawisdom of the Crowd: How Choice Within Aided Decision Making Can Make Crowd Wisdom Robust," Papers 2308.15451, arXiv.org.
    16. James Broughel, 2021. "Sovereign wealth funds: A potential solution to market failure and government failure," Economic Affairs, Wiley Blackwell, vol. 41(2), pages 241-251, June.
    17. Greco, Salvatore & Ishizaka, Alessio & Resce, Giuliano & Torrisi, Gianpiero, 2017. "Is the Grass Always Greener on the Other Side of the fence? Composite Index of Well-Being Taking into Account the Local Relative Appreciations in Better Life Index," MPRA Paper 82718, University Library of Munich, Germany.
    18. William F. Shughart II & Diana W. Thomas, 2014. "What Did Economists Do? Euvoluntary, Voluntary, and Coercive Institutions for Collective Action," Southern Economic Journal, Southern Economic Association, vol. 80(4), pages 926-937, April.
    19. Blesse, Sebastian & Heinemann, Friedrich & Krieger, Tommy, 2021. "Informationsdefizite als Hindernis rationaler Wirtschaftspolitik: Ausmass, Ursachen und Gegenstrategien. Eine Studie mit Unterstützung der Brigitte Strube Stiftung," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 241989.
    20. Matthew Caulfield, 2023. "Between Markets, Politics, and Ethics: On Vendor Conscience and Impersonal Markets," Journal of Business Ethics, Springer, vol. 188(2), pages 307-326, November.
    21. Benczes, István & Szabó, Krisztina, 2023. "Társadalmi törésvonalak és gazdasági (ir)racionalitások. A közgazdaságtan szerepe és helye a populizmus kutatásában [Social cleavages and economic (ir)rationalities: The role of economics in populi," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 23-54.

    More about this item

    Keywords

    populism; ordoliberalism; democracy; deliberation;
    All these keywords.

    JEL classification:

    • B29 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_10888. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.