Commentary Most of us, and all of us most of the time, deal with the market economy as a definite type of economic order, a sort of “economic technique” as opposed to the socialist “technique.” For this view, it is significant that we call its constructional principle the “price mechanism.” Here we move in the world of prices, of markets, of supply and demand, of competition, of wage rates, of interest rates, of exchange rates, and whatnot. That is, of course, right and proper—as far as it goes. But there is a great danger of overlooking an important fact: the market economy as an economic order must be correlated to a certain structure of society, and to a definite mental climate which is appropriate to it. The success of the market economy wherever it has been restored in our time—most conspicuously in western Germany—has resulted, even in some socialist circles, …
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