by guest contributor Steven McClellan

The historian Fritz K. Ringer claimed that for one to see the potency of ideas from great thinkers and to properly situate their importance in their particular social and intellectual milieu, the historian had to also read the minor characters, those second and third tier intellectuals, who were barometers and even, at times, agents of historical change nonetheless. One such individual who I have frequently encountered in the course of researching my dissertation, was the economist Ludwig Bernhard. As I learned more about him, the ways in which Bernhard formulated a composite of positions on pressing topics then and today struck me: the mobilization of mass media and public opinion, the role of experts in society, the boundaries of science, academic freedom, free speech, the concentration of wealth and power and the loss of faith in traditional party politics. How did they come together in his work?

Bernhard grew up in a liberal, middle-class household. His father was a factory owner in Berlin who had converted from Judaism to Protestantism in 1872. As a young man, Bernhard studied both Munich and Berlin under two-heavyweights of the German economic profession: Lujo Brentano and Gustav Schmoller. Bernhard found little common ground with them, however. Bernhard’s friend, Leo Wegener, best captured the tension between the young scholar and his elders. In his Erinnerungen an Professor Ludwig Bernhard (Poznań: 1936, p. 7), Wegener noted that “Schmoller dealt extensively with the past,” while the liberal Brentano, friend of the working class and trade unions, “liked to make demands on the future.” Bernhard, however, “was concerned with the questions of the present.” He came to reject Schmoller and Brentano’s respective social and ethical concerns. Bernhard belonged to a new cohort of economists who were friendly to industry and embraced the “value-free” science sought by the likes of Max Weber. They promoted Betriebswirtschaft (business economics), which had heretofore been outside of traditional political economy as then understood in Germany. Doors remained closed to them at most German universities. As one Swiss economist noted in 1899, “appointments to the vacant academical [sic] chairs are made as a rule at the annual meetings of the ‘Verein für Socialpolitik’,” of which Schmoller was chairman from 1890-1917. Though an exaggeration, this was the view held by many at the time, given the personal relationship between Schmoller and one of the leading civil servants in the Prussian Ministerium der geistlichen, Unterrichts- und Medizinalangelegenheiten (Department of Education, church and medical affairs), Friedrich Althoff.

Part of Bernhard’s early academic interest focused on the Polish question, particularly the “conflict of nationalities” and Poles living in Prussia. Unlike many other contemporary scholars and commentators of the Polish question, including Max Weber, Bernhard knew the Polish language. In 1904 he was appointed to the newly founded Königliche Akademie in Posen (Poznań). In the year of Althoff’s death (1908), the newly appointed Kultusminister Ludwig Holle created a new professorship at the University of Berlin at the behest of regional administrators from Posen and appointed Bernhard to it. However, Bernhard’s placement in Berlin was done without the traditional consultation of the university’s faculty (Berufungsverfahren).

The Berliner Professorenstreit of 1908-1911 ensued with Bernhard’s would-be colleagues, Adolph Wagner, Max Sering and Schmoller protesting his appointment. It escalated to the point that Bernhard challenged Sering to a duel over the course lecture schedule for 1910/1911, the former claiming that his ability to lecture freely had been restricted. The affair received widespread coverage in the press, including attracting commentaries from notables, such as Max Weber. At one point, just before the affair seemed about to conclude, Bernhard published an anonymous letter in support of his own case, which was later revealed that he was in fact the author. This further poisoned the well with his colleagues. The Prussian Abgeordnetenhaus (Chamber of Deputies) would debate the topic: the conservatives supported Bernhard and the liberal parties defended the position of the Philosophical Faculty. Ultimately, Bernhard would keep his Berlin post.

The affair partly touched upon the threat of the political power and the freedom of the Prussian universities to govern themselves—a topic that Bernhard himself extensively addressed in the coming years. It also concerned the rise of the new discipline of “business economics” gaining a beachhead at German secondary institutions. Finally, the Professorenstreit focused on Bernhard himself, an opponent of much of what Schmoller and his colleagues in the Verein für Socialpolitik stood for. He proved pro-business and an advocate of the entrepreneur. Bernhard also showed himself a social Darwinist, deploying biological and psychological language, such as in his analysis of the German pension system in 1912. He decried what he termed believed the “dreaded bureaucratization of social politics.” Bureaucracy in the form of Bismarck’s social insurance program, Bernhard argued, diminished the individual and blocked innovation, allowing the workers to become dependent on the state. Men like Schmoller, though critical at times of the current state of Prussian bureaucracy, still believed in its potential as an enlightened steward that stood above party-interests and acted for the general good.

Bernhard could never accept this view. Neither could a man who became Bernhard’s close associate, the former director at Friedrich Krupp AG, Alfred Hugenberg. Hugenberg was himself a former doctoral student of another key member of the Verein für Socialpolitik , Georg Friedrich Knapp. Bernhard was proud to be a part of Hugenberg’s circle, as he saw them as men of action and practice. In his short study of the circle, he praised their mutual friend Leo Wegener for not being a Fachmann or expert. Like Bernhard, Hugenberg disliked Germany’s social policy, the welfare state, democracy, and—most importantly—socialism. Hugenberg concluded that rather than appeal directly to policy makers and state bureaucrats through academic research and debate, as Schmoller’s Verein für Socialpolitik had done, greater opportunities lay in the ability to mobilize public opinion through propaganda and the control of mass media. The ‘Hugenberg-Konzern’ would buy up controlling interests in newspapers, press agencies, advertising firms and film studios (including the famed Universum Film AG, or UfA).

In 1928, to combat the “hate” and “lies” of the “democratic press” (Wegener), Bernhard penned a pamphlet meant to set the record straight on the Hugenberg-Konzern. He presented Hugenberg as a dutiful, stern overlord who cared deeply for his nation and did not simply grow rich off it. Indeed, the Hugenberg-Konzern marked the modern equivalent to the famous Raiffeisen-Genossenschaften (cooperatives) for Bernhard, providing opportunities for investment and national renewal. Furthermore, Bernhard claimed the Hugenberg-Konzern had saved German public opinion from the clutches of Jewish publishing houses like Mosse and Ullstein.

Both Bernhard and Hugenberg pushed the “stab-in-the-back” myth as the reason for Germany’s defeat in the First World War. The two also shared a strong belief in fierce individualism and nationalism tinged with authoritarian tendencies. These views all coalesced in their advocacy of the increasing need of an economic dictator to take hold of the reins of the German economy during the tumultuous years of the late Weimar Republic. Bernhard penned studies of Mussolini and fascism. “While an absolute dictatorship is the negation of democracy,” he writes, “a limited, constitutional dictatorship, especially economic dictatorship is an organ of democracy.” (Ludwig Bernhard: Der Diktator und die Wirtschaft. Zurich: 1930, pg. 10).

Hugenberg came to see himself as the man to be that economic dictator. In a similar critique mounted by Carl Schmitt, Bernhard argued that the parliamentary system had failed Germany. Not only could anything decisive be completed, but the fact that there existed interest-driven parties whose existence was to merely antagonize the other parties, stifle action and even throw a wrench in the parliamentary system itself, there could be nothing but political disunion. For Bernhard, the socialists and communists were the clear violators here.

The Nazis proved another story. Hitler himself would be hoisted in power by Hugenberg. Standing alongside him was Bernhard. In April 1933, Bernhard published a brief op-ed entitled “Freiheit der Wissenschaft,” which summarized much of his intellectual career. He began by stating, “Rarely has a revolution endured the freedom of science.” Science is free because it is based on doubt. Revolution, Bernhard writes, depends on eliminating doubt. It must therefore control science. According to Bernhard, this is what the French revolutionaries in 1789 attempted. In his earlier work on this topic, Bernhard made a similar argument, stating that Meinungsfreiheit (free speech) had been taken away by the revolutionary state just as it had been taken away by democratic Lügenpresse. Thankfully, he argued, Germany after 1918 preserved one place where the “guardians” of science and the “national tradition” remained—the universities, which had “resisted” the “criminal” organization of the Socialist Party’s Prussian administration. Bernhard, known for his energetic lectures, noted with pride in private letters the growth of the Nazi student movement. In 1926, after having supported the failed Pan-German plan to launch a Putsch (coup d’état) to eliminated the social democratic regime in Prussia, Bernhard spoke to his students, calling on the youth to save the nation. Now, it was time for the “national power” of the “national movement” to be mobilized. And in this task, Bernhard concluded, Adolf Hitler, the “artist,” could make his great “masterpiece.”

Ludwig Bernhard died in 1935 and therefore never saw Hitler’s completed picture of a ruined Germany. An economic nationalist, individualist, and advocate of authoritarian solutions, who both rebelled against experts and defended the freedom of science, Bernhard remains a telling example of how personal history, institutional contexts and the perception of a heightened sense of cultural and political crisis can collude together in dangerous ways, not least at the second-tier of intellectual and institutional life.

Steven McClellan is a PhD Candidate in History at the University of Toronto. He is currently writing his dissertation, a history of the rise and fall, then rebirth of the Verein für Sozialpolitik between 1872 and 1955.