Nell Breuning and the system of social market economy (Soziale Marktwirtschaft)

Abstract

Nell Breuning s main contribution was the development an income distribution model, nowadays one of the most common topics in economic debates. There are three different ways to access income: through work, through capital, or through land. In the 20th century the ownership of the means of production in Germany was concentrated among few people. The fact that large layers of society were unrelated to the institution of the property, along with the triumph of the Communist ideas in the Soviet Russia,put into question the conception of private property as well as of social peace. Against this background and the Communist proposal of distribution of ownership of production assets, Nell Breuning proposed a model drawing on a jus naturalist understanding of private property based on the participation of workers in profits with the purpose of generating capacity of savings and, thus, as co owners, being able to reinvest those savings in the ownership of the enterprise. Reading and analysis of some texts of the author during those years (1948 1965) has been the starting point of the study. Our conclusions outline the effects of Nell Breuning s model in the global configuration of social market economy system.