Die neue Wirtschaft

Walther Rathenau's work, Die neue Wirtschaft (1918), or "The New Economy," proposed a significant shift in economic organization. Rathenau, a statesman and industrialist, advocated for a system that combined industrial self-government with employee participation and effective state control, moving away from unrestricted capitalism. He believed this approach would be more beneficial than wholesale nationalization of industries.1

Rathenau's ideas emerged in the context of post-World War I Germany, a period of economic devastation and political upheaval. His vision aimed to balance economic efficiency with social welfare, a concept that resonates with the later development of the social market system in West Germany, known as the Wirtschaftswunder. This system sought to regulate capitalism for societal benefit rather than through direct intervention.23