The rights of a free citizen include, not least, the right to an effective, coherent social policy, one that, by means of a socially just distribution of wealth, safeguards the human right to work, protects the old, the weak, and the sick and, in particular, provides adequate and dignified support for widows, orphans, and invalids. The goal of this social policy is to prevent material want, to preserve human dignity and personal freedom, and to secure social harmony.
The economy must serve the people and never be viewed as an end in itself. Therefore, in accordance with the needs of the free citizenry, the foremost goal of economic policy is to increase production in all sectors to satisfy the vital needs of a growing population. This goal can only be achieved by maintaining free enterprise and reducing economic bureaucracy. Thus, the planning and guidance that is crucial to overcoming this dire situation must not be bureaucratic; rather, it must manifest itself as the democratic self-management of the economy by its bodies under the controlling influence of the state. Personal initiative and free competition enhance economic performance, and personal property is an essential foundation of a healthy economy.
On the other hand, the freedom of the economy must not be socially abused, and it must not lead to the predominance of the excessively powerful. It is both the task and the obligation of the economy to satisfy the needs of all. To achieve this goal, the economy must be integrated into the global economy with an international division of labor. This system created by freedom and responsibility, which find expression through genuine performance-based competition and the independent control of monopolies. Genuine performance-based competition exists when the rules of competition ensure that, under conditions of fair competition and equal opportunity, the better performance is rewarded. Market-driven prices regulate the interaction between all market participants. It stands in marked contrast to the command economy, which we reject, regardless of whether its guiding agencies are organized in a centralized or decentralized fashion, are part of the state, or are autonomous.
Performance-based competition must be secured by law. Monopolies and holders of economic power must be subject to an institutionally based, independent control authority that answers only to the law. Legal measures that foster genuine responsibility in the business community are necessary safeguards for true economic freedom. Efficient small and medium-sized businesses must be promoted on account of their national economic value and the opportunities they offer for social advancement. In industry, commerce, and the skilled trades, private entrepreneurship must be preserved and further promoted.
Market-driven prices must be allowed to evolve, and they must not be distorted by the state or by private industry through arbitrary action or decree. This type of interference only disrupts the marketplace. However, efforts to organically influence prices by means of economic policy, particularly by means of monetary, credit, and tax policies, so that goods will flow into the market in growing quantities and at sinking prices are just and proper. The fixing of wages and working conditions must be left to the collective agreement system. Performance-based pay and wage increases must be supported within the framework of proper market-economic prices. They increase both purchasing power and demand in much the same way as sinking prices. Together with efforts to organically influence economic development by means of monetary and capital policy, by means of a tax system that improves tax morale and capital formation, and by means of an enhanced labor and economic law and a reformed social law, performance-based competition and the control of monopolies will ensure the ongoing development of the industrial economy. They will create social peace and grant each individual the freedom and opportunity to participate in the economic process in accordance with his or her performance and ability.
What is true of the performance-based economy in general is even truer of agriculture in particular. The primary task of agricultural policy is to increase agricultural production. When and where the right to land ownership inhibits productivity instead of enhancing it, it is the task of a well-considered policy to ensure that this right also includes the obligation to actually utilize the land so as to achieve the highest possible level of production. Only this type of policy – and not arbitrary divestitures or expropriation – amounts to true land reform. The proven capability of German farmers, who are deeply rooted to the land, is the best guarantee of proper land use. A democratic agrarian policy must therefore be based on the preservation and promotion of the free class of farmers.
Technology and science must be strongly promoted. They create new needs and job opportunities. They lower prime costs. The performance-based economy embraces the free choice of profession, the right to establish a business, freedom of trade, and freedom of movement.
The performance-based economy affirms and promotes private property. A just distribution of economic proceeds and a socially anchored legal system must seek to transform, on a large scale, the poorer classes into property owners. The promotion of the accumulation of savings is a vital element in assuring continued economic development and capital formation. Effective safeguards must be put in place to prevent economic crises and mass unemployment. These must include an effective credit and currency policy as well as a public investment policy.
The performance-based economy can only be realized if it enjoys the trust of all strata of society, that is, when entrepreneurs, workers, and consumers are actively involved in its implementation.