Among the following countries, where did the idea of ‘Social Market Economy’ emerge in 1950s ?
[amp_mcq option1=”Germany” option2=”France” option3=”United States of America” option4=”United Kingdom” correct=”option1″]
This question was previously asked in
UPSC CDS-2 – 2022
The correct answer is A) Germany.
The concept of the ‘Social Market Economy’ (Soziale Marktwirtschaft) emerged in post-World War II West Germany. It was developed primarily by economists of the Freiburg School and politicians like Ludwig Erhard, who served as Minister of Economics and later Chancellor. The model aimed to combine a competitive market economy with a social safety net and state intervention to achieve social balance.