However, recently Lars Feld rightly pointed out that social market economy cannot be the name given to anything that seems politically desirable. He warned against considering oneself, like Voltaire’s Candide, in a Panglossian world where anything good must be social market economy.
Therefore, high levels of capacity utilization were good predictors of resource tightness that was likely to translate into pricing pressure. Now, we hear, capacity in manufacturing is more technology intensive and can be adjusted more easily to reflect supply and demand conditions.