under Chancellor Konrad Adenauer from 1949 to 1963. During that period, he promoted the concept of the social market economy (soziale Marktwirtschaft), on which Germany's economic policy in the 21st century continues to be based.

In his tenure as Chancellor, however, Erhard lacked support from Adenauer, who remained chairman of the CDU party until 1966. Erhard failed to win the German public's confidence in his handling of a budget deficit