The Freeman 1972 - The Ludwig von Mises Institute

The~allooningWelfare StateHENRY HAZLITTMOST of the self-styled liberals ofthe present day would be astonishedto learn that the father ofthe welfare state that they somuch admire was none other thanthe fervent antiliberal and advocateof "blood and iron", Otto vonBismarck."He was the first statesman inEurope to devise a comprehensivescheme of social security, offeringthe worker insurance against accident,sickness, and old age. ThisBismarckian 'socialism' later becamea model for every other countryin Europe. It represented inpart the paternalistic function ofthe state which Bismarck, as a conservative,had always held."1Bismarck's scheme of compulsoryinsurance went into effect inHenry Hazlitt is well 19town to Freemanreaders as author, columnist, editor, lecturer,and practitioner of freedom. This article willappear as a chapter in a forthcoming book,The Conquest of Poverty, to be published byArlington House.1883, and was soon even baptizedby German journalists as derWohlfahrtsstaat.The example of Germany wasfollowed by Austria in 1888 andby Hungary in 1891.It was not till 1912 that compulsoryhealth insurance was introducedin Great Britain, underLloyd George's National InsuranceAct of 1911. In 1925 came contributoryold-age, widows' and orphans'pensions. Unemployment insurancewas put on a fresh basisin the Unemployment Act of 1934,which set up at the same time anational system of unemploymentassistance. In 1945 the Family AllowanceAct was passed. It providedfor payment to every family,rich or poor, of an allowance foreach child, other than the eldest.In 1946 came the National HealthService Act, offering free medicalservices and medicines to everyone.226