Germany's economic model has been frequently described as a coordinated market economy juxtaposed against the Anglo-Saxon liberal market economies of the UK and the United States. For many, Germany's post–World War II “social market economy” in particular constitutes an alternative model to harsher neoliberal systems (Nicholls 1994). A high degree of state interventionism is alleged to be strongly rooted in the history of Germany, which is also frequently held to be deficient in the cultural values of liberal individualism. Indeed, the origins of modern social security systems can be traced back to Bismarck's efforts in the late nineteenth century to protect workers from old age poverty and health-related risks not meliorated by market forces. But the promise of pensions and health insurance was at the same time meant to undermine the rapid rise of the Social Democratic Party in that era. Previous efforts to outlaw the first modern mass party had proved ineffective. Since the strong police state (and the military) were incapable of solving the problem, other means had to be found to limit the appeal of a working-class mass movement, which propagated revolutionary socialism at the time.

Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, loc. 498