Soziale Ordnung

Strengthening individual responsibility and competition...

...within the welfare state, too.

The market economy is based on personal autonomy and individual responsibility. But not everyone is in the position to care for themselves adequately. A free society, therefore, requires some social equalization to protect opportunity. Yet when state redistribution schemes run uncontrolled, they cripple individual responsibility and stifle competition, and the problems that were supposed to have been solved by overzealous state programs are in fact worsened.

The Market Economy Foundation takes a stand

  • for a social order supportive of and based on individual responsibility and autonomy,

  • for the application of a “support with expectations” approach to welfare,

  • for more market-based incentives in the public social security system,

  • for the deregulation of the labor market.

Long-Term Care Insurance Reform

Though nobody has disputed that the social long-term care insurance system is not sustainable due to the challenges posed by demographic change in Germany, proposals for reform of the system have been thus far postponed. The federal government called 2011 the “Year of Care” and committed itself to the reform of the long-term care system. The results of this reform, however, have yet to be seen. It is in this context that the Market Economy Foundation organized a conference in May 2011 to discuss the challenges and possible reform proposals for the long-term care system.

Read our conference report “The Long-Term Care System in Need of Care: An Aging Population, Service Expansion, and Tight Coffers.” .

An alternative that would strengthen the sustainability of the long-term care system would be the introduction of a waiting period – a service-free time period occurring between the beginning of the need for care and the beginning of services provided by insurance. Possible alternatives for the implementation of such a waiting period in the long-term care insurance system are discussed in chapter 4 of our publication, “Straightforward States? The Generational Accounting Update for 2011: What Long-Term Care Insurance Reform Could Achieve – and What It Should Achieve.” skizziert.

The Kronberger Scientific Council, the scientific advisory council of the Market Economy Foundation, has developed a reform proposal for a sustainable long-term care insurance system: Sustainable Long-Term Care..

A short outline of the challenges facing the long-term care system and the principal elements of any solution can be found in our publication: “Reform of the Long-Term Care Insurance System: Return to Go.”.

Minimum Wages: Inappropriate Instruments for Social Policy

Minimum wages entail not only labour market risks, they are also unsuitable as an instrument of social policy because of their lack of accuracy. More on the subject in our “Position Paper: The Minimum Wage.”.


Resident Expert

Dr. Guido Raddatz

Dr. Guido Raddatz

Labor Market, Social Security, and Federalism

Tel.: +49 (0)30 / 206057-32

Email: raddatz(at)