The Political Construction of a Coordinated Political Economy

Abstract

The first chapter motivates the book’s central research question: how did the German variant of capitalism emerge, and what today is its central functioning logic? The chapter argues that past and recent accounts of Germany’s economic performance and economic policy have failed to fully explain how long-term stable economic coordination could have evolved in as large a country as Germany, and that this has also translated into an often biased view of Germany’s current economic policies. The chapter sketches the basic argument of the book—namely that the German welfare state was the prime means of economic coordination for unions and employers, labor and capital—and situates it in two relevant literatures: the Varieties of Capitalism literature on the one hand and the Comparative Welfare State literature on the other. The chapter also presents an overview of the book.