State Socialism
Encyclopedia
State Socialism was a term introduced to describe Otto von Bismarck
's social welfare policies. The term was actually coined by Bismarck's liberal
opposition but later accepted by Bismarck. They refer to a set of social programs implemented between 1884 to 1889 as remedial measures to appease the working class and detract support for socialism
and the Social Democratic Party of Germany
following earlier attempts to achieve the same objective through Bismarck's anti-socialist laws
.
.
At the time, they influenced social liberalism
in the United Kingdom and Progressivism in the United States
, and the current (Post-World War II) German economy, the social market economy
, is a continuation of similar policies.
it is today. The Social Democratic, National Liberal
and Centre
Parties were all involved in the beginnings of social legislation, but it was Bismarck who established the first practical aspects of this program. The program of the Social Democrats included all of the programs that Bismarck eventually implemented, but also included programs designed to preempt the programs championed by Karl Marx
and Friedrich Engels
. Bismarck's idea was to implement the minimum aspects of these programs that were acceptable to the German government without any of the overtly socialistic aspects.
Bismarck opened debate on the subject on 17 November 1881 in the Imperial Message to the Reichstag
, using the term practical Christianity to describe his program. In 1881 Bismarck had also referred to this program as Staatssozialismus, when he made the following accurate prediction to a colleague:
Bismarck's program centered squarely on insurance programs designed to increase productivity and focus the political attentions of German workers on supporting the Junker's government. The program included Health insurance, accident insurance (workman's compensation); disability insurance; and an old-age retirement Pension, none of which then in existence to any great degree.
Based on Bismarck's message, the Reichstag filed three bills designed to deal with the concept of Accident insurance, and one for Health Insurance. Retirement pensions and disability insurance were placed on the back burner for the time being.
for the average Prussian was 45. Unlike accident insurance and health insurance, this program covered industrial, agrarian, artisans and servants from the start. Also, unlike the other two programs, the principle that the federal government should contribute a portion of the underwriting cost, with the other two portions prorated accordingly, was accepted without question. The disability insurance program was intended to be used by those permanently disabled. This time, the state supervised the programs directly.
Otto von Bismarck
Otto Eduard Leopold, Prince of Bismarck, Duke of Lauenburg , simply known as Otto von Bismarck, was a Prussian-German statesman whose actions unified Germany, made it a major player in world affairs, and created a balance of power that kept Europe at peace after 1871.As Minister President of...
's social welfare policies. The term was actually coined by Bismarck's liberal
Liberalism
Liberalism is the belief in the importance of liberty and equal rights. Liberals espouse a wide array of views depending on their understanding of these principles, but generally, liberals support ideas such as constitutionalism, liberal democracy, free and fair elections, human rights,...
opposition but later accepted by Bismarck. They refer to a set of social programs implemented between 1884 to 1889 as remedial measures to appease the working class and detract support for socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
and the Social Democratic Party of Germany
Social Democratic Party of Germany
The Social Democratic Party of Germany is a social-democratic political party in Germany...
following earlier attempts to achieve the same objective through Bismarck's anti-socialist laws
Anti-Socialist Laws
The Anti-Socialist Laws or Socialist Laws were a series of acts, the first of which was passed on October 19, 1878 by the German Reichstag lasting till March 31, 1881, and extended 4 times...
.
Intellectual predecessors and heirs
The Prussian welfare state was developed by the German academic Sozialpolitiker (Social Policy Supporter) group, intellectually associated with the historical school of economicsHistorical school of economics
The Historical school of economics was an approach to academic economics and to public administration that emerged in 19th century in Germany, and held sway there until well into the 20th century....
.
At the time, they influenced social liberalism
Social liberalism
Social liberalism is the belief that liberalism should include social justice. It differs from classical liberalism in that it believes the legitimate role of the state includes addressing economic and social issues such as unemployment, health care, and education while simultaneously expanding...
in the United Kingdom and Progressivism in the United States
Progressivism in the United States
Progressivism in the United States is a broadly based reform movement that reached its height early in the 20th century and is generally considered to be middle class and reformist in nature. It arose as a response to the vast changes brought by modernization, such as the growth of large...
, and the current (Post-World War II) German economy, the social market economy
Social market economy
The social market economy is the main economic model used in West Germany after World War II. It is based on the economic philosophy of Ordoliberalism from the Freiburg School...
, is a continuation of similar policies.
Bismarck's social legislation
The 1880s were a period when Germany started on its long road towards the welfare stateWelfare state
A welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those...
it is today. The Social Democratic, National Liberal
National Liberal Party (Germany)
The National Liberal Party was a German political party which flourished between 1867 and 1918. It was formed by Prussian liberals who put aside their differences with Bismarck over domestic policy due to their support for his highly successful foreign policy, which resulted in the unification of...
and Centre
Centre Party (Germany)
The German Centre Party was a Catholic political party in Germany during the Kaiserreich and the Weimar Republic. Formed in 1870, it battled the Kulturkampf which the Prussian government launched to reduce the power of the Catholic Church...
Parties were all involved in the beginnings of social legislation, but it was Bismarck who established the first practical aspects of this program. The program of the Social Democrats included all of the programs that Bismarck eventually implemented, but also included programs designed to preempt the programs championed by Karl Marx
Karl Marx
Karl Heinrich Marx was a German philosopher, economist, sociologist, historian, journalist, and revolutionary socialist. His ideas played a significant role in the development of social science and the socialist political movement...
and Friedrich Engels
Friedrich Engels
Friedrich Engels was a German industrialist, social scientist, author, political theorist, philosopher, and father of Marxist theory, alongside Karl Marx. In 1845 he published The Condition of the Working Class in England, based on personal observations and research...
. Bismarck's idea was to implement the minimum aspects of these programs that were acceptable to the German government without any of the overtly socialistic aspects.
Bismarck opened debate on the subject on 17 November 1881 in the Imperial Message to the Reichstag
Reichstag (German Empire)
The Reichstag was the parliament of the North German Confederation , and of the German Reich ....
, using the term practical Christianity to describe his program. In 1881 Bismarck had also referred to this program as Staatssozialismus, when he made the following accurate prediction to a colleague:
- "It is possible that all our politics will come to nothing when I am dead but state socialism will drub[force] itself in. (Der Staatssozialismus paukt sich durch.)"
Bismarck's program centered squarely on insurance programs designed to increase productivity and focus the political attentions of German workers on supporting the Junker's government. The program included Health insurance, accident insurance (workman's compensation); disability insurance; and an old-age retirement Pension, none of which then in existence to any great degree.
Based on Bismarck's message, the Reichstag filed three bills designed to deal with the concept of Accident insurance, and one for Health Insurance. Retirement pensions and disability insurance were placed on the back burner for the time being.
Health Insurance Bill of 1883
The first bill that had success was the Health Insurance bill, which was passed in 1883. The program was considered the least important from Bismarck's point of view and the least politically troublesome. The program was established to provide health care for the largest segment of the German workers. The health service was established on a local basis, with the cost divided between employers and the employed. The employers contributed one-third, the workers the rest. The minimum payments for medical treatment and sick pay for up to 13 weeks were legally fixed. The individual local health bureaus were administered by a committee elected by the members of each bureau, and this move had the unintended effect of establishing a majority representation for the workers on account of their large financial contribution. This worked to the advantage of the Social Democrats who, through heavy worker membership, achieved their first small foothold in public administration.Accident Insurance Bill of 1884
Bismarck's government had to submit three draft bills before it could get one passed by the Reichstag in 1884. Bismarck had originally proposed that the Federal Government should pay a portion of the accident insurance contribution to show the willingness of the German government to lessen the hardship experienced by the German workers as a means of weaning them away from the various left-wing parties, most importantly the Social Democrats. The National Liberals took this program to be an expression of State Socialism, which they were strongly against. The Centre Party was afraid of the expansion of federal power at the expense of states' rights. As a result, the only way the program could be passed at all was for the entire expense to be underwritten by the employers. To facilitate this, Bismarck arranged for the administration of this program to be placed in the hands of “Der Arbeitgeberverband in den beruflichen Korporationen”, “the organization of employers in occupational corporations”. This organization established central and bureaucratic insurance offices on the federal, and in some cases the state, level to perform the actual administration. The program kicked in to replace the health insurance program as of the 14th week. It paid for medical treatment and a Pension of up to two-thirds of earned wages if the worker was fully disabled. This program was expanded in 1886 to include agricultural workers.Old Age and Disability Insurance Bill of 1889
The old-age pension program, financed by a tax on workers, was designed to provide a pension annuity for workers who reached the age of 70. At the time, the life expectancyLife expectancy
Life expectancy is the expected number of years of life remaining at a given age. It is denoted by ex, which means the average number of subsequent years of life for someone now aged x, according to a particular mortality experience...
for the average Prussian was 45. Unlike accident insurance and health insurance, this program covered industrial, agrarian, artisans and servants from the start. Also, unlike the other two programs, the principle that the federal government should contribute a portion of the underwriting cost, with the other two portions prorated accordingly, was accepted without question. The disability insurance program was intended to be used by those permanently disabled. This time, the state supervised the programs directly.
See also
- Anti-socialist lawsAnti-Socialist LawsThe Anti-Socialist Laws or Socialist Laws were a series of acts, the first of which was passed on October 19, 1878 by the German Reichstag lasting till March 31, 1881, and extended 4 times...
- SocialismSocialismSocialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
- Kemalism
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- Celal BayarCelal BayarCelâl Bayar was a Turkish politician, statesman and the third President of Turkey. At the time of his death, he was the longest lived former head of state, living over 103 years .-Early years:He was born in 1883 at Umurbey, a village of Gemlik, Bursa as the son of a religious leader and teacher...
- İsmet İnönüIsmet InönüMustafa İsmet İnönü was a Turkish Army General, Prime Minister and the second President of Turkey. In 1938, the Republican People's Party gave him the title of "Milli Şef" .-Family and early life:...
- Welfare stateWelfare stateA welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those...