Wilhelm Röpke was a man whose life and work we all should be familiar with during these days of economic turmoil. With the recent bank interventions and bailouts, government controlled bankruptcies of automotive companies and calls for energy independence, his voice needs to be heard again. Fifty years ago Röpke penned a short memoir, entitled “The Economic Necessity of Freedom”, which outlined the development of his thought over the years. Even fifty years removed, his observations still ring true and he provides wisdom for the challenges of the day.
Born in 1899 in Schwarmstedt, Germany, and a descendant of a long line of devout Lutherans, Röpke came into a world on the brink of disastrous global change. He once described his childhood as an idyllic existence of “confident ease…unimaginable freedom and almost cloudless optimism” and viewed himself as a “…true child of the 19th century, though with one foot in the 20th”. It would all come to an end though during his teens. Serving in the German army during World War I, Röpke received the Iron Cross for bravery. After the war he became an economist and spoke against the economic policies of postwar Germany. Similar to today, “[i]t was a struggle against economic nationalism, the groups that supported it, or the particular strategies it employed – a struggle against monopolies, heavy industry, and large-scale farming interests, against the inexcusable inflation, whose engineers obscured what they were doing with fantastic monetary theories, against the aberrations of the policy of protective tariffs, against the final madness of autarky.” In 1933, he characterized the Nazi rise to power as a “new form of barbarism” which resulted in a self-imposed exile to Turkey and eventually Switzerland. From Switzerland he helped provide the intellectual foundation and encouragement upon which Germany could be rebuilt after World War II.
As with many of his era, Röpke marked 1914 as a turning point globally and personally. Globally, the First World War was the “cataclysm” that shaped the first half of the 20th century. On a personal level, it was the horrors of the war which conceived his life’s mission and directed the studies and labors of his adult life.
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Filed under: Uncategorized , Austrian Economics, Economics, Leviathan, Liberty, Röpke, War