Skip to main content

The Role of Competition in a Liberal Society (1979)

  • Conference paper
The Social Market Economy

Part of the book series: Studies in Economic Ethics and Philosophy ((SEEP))

Abstract

A liberal polity, or — as Kant put it — the civil state, should be based on the liberty of individuals as human beings, on their equality as subjects and on their independence as Citizens1. Concern for liberty does not signify, however, state care for happiness; equality before the law does not mean equality of estate and wealth; independence does not mean rising above dependent labour. There exist these economic differences, which arise from the guarantee of civil rights and from the equality of opportunity ensured by them, on which the debate about the theoretical and political legitimacy of liberal principles was kindled. The social processes which generate the distinctions of wealth, of property and of influence are characterised by competition, rivalry and conflicts. It is not a matter here of unforeseen side-effects, of abuses or of degeneration; it is much more the competition for prestige and honour, influence and power, prosperity and riches that are regarded as necessary consequences arising from the natural inclinations of human beings. The love of self2, the amour-propre that draws parallels and the antisocial gregariousness of mankind3, Man’s constant and insatiable striving for power, ending only with death4, are viewed as the anthropological causes of the universal antagonism in society, of the struggle of all against all, ergo: the competition. Therefore the debates about the feasibility and the boundaries of liberal societies can be reduced to being debates about competition.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 119.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 159.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. I. Kant: Ueber den Gemeinspruch; (On the saying: That may be correct in theory, but does not answer in practice), Akademieausgabe, Vol. VIII. p. 290.

    Google Scholar 

  2. Adam Smith: uyen Theory of Moral Sentiments, edited by Raphael and A. L. Macfie, 1976, p. 304.

    Google Scholar 

  3. Kant: Idee zu einer allgemeinen Geschichte in weltbürgerlicher Absicht, Akademieausgabe, Vol. VIII, p. 20.

    Google Scholar 

  4. Hobbes: Leviathan, or the Matter, Form and Power of a Commonwealth Ecclesiastical and Civil, Molesworth Edition, Vol. III, pp. 85–86.

    Google Scholar 

  5. Hobbes: Philosophical Rudiments Concerning Government and Society, Molesworth Edition, Vol. II, p. 135.

    Google Scholar 

  6. Hegel: Grundlinien der Philosophie des Rechts, published by Johannes Hofmeister, 4. Aufl., p. 200.

    Google Scholar 

  7. Karl Marx, Friedrich Engels: Die deutsche Ideologie. Kritik der neuesten deutschen Philosophie in ihren Repräsentanten Feuerbach, B. Bauer u.a. und des deutschen Sozialismus in seinen verschiedenen Propheten, MEW Vol. III, p. 62.

    Google Scholar 

  8. Das Kapital, Kritik der politischen Oekonomie, MEW Vol. XXV, p. 377. Marx repeatedly highlighted the links between his theory and that of Hobbes in Die Deutsche Ideologie: “If power be accepted as the basis of the jurisprudence, as Hobbes etc. do, then jurisprudence, law and so forth only a sympton, an expression of other situations, upon which the power of the state rests” (MEW Vol. III, p. 311). Cf. also Marx’s approving reference to the evidence for the “bellum omnium contra omnes” based on the very nature of Man, ibid., p. 460. Marx: Letter to Engels of 18.6.1872 (MEW, Briefe Bd. XXX. p. 249) remarks on Darwin’s theory: “it is noteworthy how Darwin recognised among the flora and fauna his English society with its division of labour, competition, elimination of new markets, “inventions” and a Malthusian “struggle for existence”. It is Hoboes’ ‘bellum omnium contra omnes’ and is reminiscent of Hegel in the phenomology, where civil society figures as an”animal world”, while for Darwin the animal world figures as civil society”.

    Google Scholar 

  9. Hobbes: Leviathan, or the Matter, Form and Power of a Commonwealth Ecclesiastical and Civil, as referred to above, p. 199.

    Google Scholar 

  10. Ibid., p. 61.

    Google Scholar 

  11. Leviathan, loc. cit., p. 60.

    Google Scholar 

  12. Leviathan, loc. cit., p. 74.

    Google Scholar 

  13. Cf. E. J. Mestmaecker in detail regarding this: Die sichtbare Hand des Rechts. Ueber das Verhältnis von Rechtsordnung und Wirtschaftssystem bei Adam Smith. See above p. 104 ff.

    Google Scholar 

  14. Ueber den Gemeinspruch, loc. cit., p. 304, in spaced type in the original.

    Google Scholar 

  15. Anthropologie in pragmatischer Hinsicht, Akademieausgabe, Vol. VII, p. 331.

    Google Scholar 

  16. Idee zu einer allgemeinen Geschichte in weltbürgerlicher Absicht, Akademieausgabe, Vol. VIII, p. 22.

    Google Scholar 

  17. Anthropologie, loc. cit., p. 331.

    Google Scholar 

  18. Die Metaphysik der Sitten, Akademieausgabe, Bd. VI, 312. Cf. also: Die Religion innerhalb der Grenzen der bloßen Vernunft, Akademieausgabe, Vol. VI, p. 97.

    Google Scholar 

  19. Big Business and the Policy of Competition, 1956, p. 5.

    Google Scholar 

  20. Northern Pacific Railway vs. U.S. 356 U.S. 1,4 (1958).

    Google Scholar 

  21. “Learned Hand”, United States vs. Aluminum Co. of America, 148 Fed. 2d 427, 429 (1945).

    Google Scholar 

  22. Franz Boehm: “Demokratie und wirtschaftliche Macht”, in: Kartelle und Monopole in modernem Recht, 1961, pp. 9, 22.

    Google Scholar 

  23. Chamberlin and Robinson: The Theory of Monopolistic Competition, Cambridge 1933; The Economics of Imperfect Competition, London 1933.

    Google Scholar 

  24. E. Hoppmann: “Fusionskontrolle”, Walter Eucken-Institut. Vorträge und Aufsätze, Vol. 38, p. 11.

    Google Scholar 

  25. Ibid., p. 33.

    Google Scholar 

  26. Ibid., p. 51.

    Google Scholar 

  27. Aboveall, I. M. Kirzner: Wettbewerb und Unternehmertum, 1978, especially pp.20ff and 56ff.

    Google Scholar 

  28. Primarily and fundamentally F. A. von Hayek: “Economics and Knowledge”, Economica, 1937, p.33ff.

    Google Scholar 

  29. 28b See for the reference to von Hayek in detail I. M. Kirzner: Wettbewerb und Unternehmertum, 1978, p. 176ff.

    Google Scholar 

  30. Kant: Ueber den Gemeinspruch, loc. cit., p. 313.

    Google Scholar 

  31. Price Commission Report for the period 1st August to 31st October 1977.

    Google Scholar 

  32. On this, see Monopolkommission: Sondergutachten 1, Anwendung und Möglichkeiten der Mißbrauchsaufsicht über marktbeherrschende Unternehmen, 1977.

    Google Scholar 

  33. Schweizerische Kartellkommission: Die Nachfragemacht und deren Mißbrauch. Veröffentlichungen der Schweizerischen Kartellkommission, Heft 1, 1976, 11. Jahrgang. Monopolkommission: Sondergutachten, Mißbräuche der Nachfragemacht und Möglichkeiten zu ihrer Kontrolle im Rahmen des Gesetzes gegen Wettbewerbsbeschränkungen, 1977.

    Google Scholar 

  34. Hobbes: Leviathan, loc. cit., p. 219.

    Google Scholar 

  35. The VEBA/Gelsenberg amalgamation. Erlaubnisentscheidung vom 1. Februar 1974 (Decision on the Permission for the Merger); see Monopolkommission:”Gutachten 2”, Wettbewerbliche und strukturelle Aspekte einer Zusammenfassung von Unternehmen im Energiebereich, 1975. Zusammenschluß Deutsche Babcock mit der Artos-Gruppe. Erlaubnisentscheidung vom 17. Oktober 1976; see Monopolkommission: Sondergutachten 4, 1977. Zusammenschluß VEBA/BP, Erlaubnisentscheidung vom 5.3.1979; see Monopolkommission: Sondergutachten 8, 1979.

    Google Scholar 

  36. The Industrial Policy of the Community. Memorandum of the Commission to the Council, 1970.

    Google Scholar 

  37. 8th Report on Competition Policy, Brussels/Luxemburg, April 1979. Fig. 1. (Merger Control was finally introduced by the ordonance 4064/89 of 21.12.1989 effective as of 21.9.1990).

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 1998 Springer-Verlag Berlin • Heidelberg

About this paper

Cite this paper

Mestmäcker, E.J. (1998). The Role of Competition in a Liberal Society (1979). In: Koslowski, P. (eds) The Social Market Economy. Studies in Economic Ethics and Philosophy. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-72129-8_22

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-72129-8_22

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-72131-1

  • Online ISBN: 978-3-642-72129-8

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics