State Socialism (Germany)

State Socialism (German: Staatssozialismus) was a set of social programs implemented in the German Empire that were initiated by Otto von Bismarck in 1883 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.^[1]^[2] As a term, it was coined by Bismarck's liberal opposition to these social welfare policies, but it was later accepted by Bismarck.^[3]^[4] This did not prevent the Social Democrats from becoming the biggest party in the Reichstag by 1912. According to historian Jonathan Steinberg, "[a]ll told, Bismarck's system was a massive success—except in one respect. His goal to keep the Social Democratic Party out of power utterly failed. The vote for the Social Democratic Party went up and by 1912 they were the biggest party in the Reichstag".^[5]

In spite of its name, State Socialism was a conservative ideology which supported the aristocracy, the church and the monarchy while maintaining harmony with capitalists and workers, in opposition to both liberalism and socialism. Hence, its supporters called themselves the Conservative Party while its opponents called themselves the National Liberal Party and the Socialist Workers' Party. Historian Alexander Nove argued that social ownership through government can only occur if the government is socially controlled which was not the case where an emperor rules by the will of God as in Germany since the Emperor was not the public. Nove's definition of social ownership, a common characteristic that accomunates types of socialism,^[6] refers to "the major part of means of production",^[7] but this remained in private hands under State Socialism. In "Why I Am Not a Conservative", Friedrich Hayek explained that "[t]here are, however, two economic and philosophical estimates of society with which State Socialism may be brought into broad contrast", namely liberalism and socialism.^[8] According to journalist William Harbutt Dawson, an acknowledged expert on German politics and society, "[t]he great disagreement between Socialism and State Socialism is that the former would entirely subvert the State, while the latter accepts its political form as it is. Socialism would abolish the existing order altogether, while State Socialism would use the State for the accomplishment of great economic and social purposes, especially restoring to it the function, which Frederick the Great held to be the principal business of the State, of 'holding the balance [...] between classes and parties".^[9]

Bismarck's biographer A. J. P. Taylor wrote that "[i]t would be unfair to say that Bismarck took up social welfare solely to weaken the Social Democrats; he had had it in mind for a long time, and believed in it deeply. But as usual he acted on his beliefs at the exact moment when they served a practical need".^[10] When a reference was made to his friendship with Ferdinand Lassalle, a democratic and state-oriented reformist socialist, Bismarck stated that he was a more practical socialist than the Social Democrats.^[10] Bismarck justified his social welfare programs by stating that "[w]hoever has pensions for his old age is far more easy to handle than one who has no such prospect. Look at the difference between a private servant in the chancellery or at court; the latter will put up with much more, because he has a pension to look forward to".^[11]

^ Bismarck, Otto (15 March 1884). "Bismarck's Reichstag Speech on the Law for Workers' Compensation". German History in Documents and Images. Retrieved 27 December 2019.
^ Gregory, Paul R.; Stuart, Robert C. (2003). Comparing Economic Systems in the Twenty-First Century. Nashville: Southwestern Publishing House. p. 207. ISBN 9780618261819. "Chancellor Otto von Bismarck introduced social welfare legislation in Germany between 1883 and 1888, despite violent political opposition, as a direct attempt to stave off Marx's (prediction of a) socialist revolution".
^ Feuchtwanger, Edgar (2002) [1970]. Bismarck. London: Routledge. p. 221. ISBN 9780415216142.
^ "Developmentalisms | Ernest Ming-Tak Leung". Phenomenal World. 18 September 2021. Retrieved 2021-09-19.
^ Boissoneault, Lorraine (14 July 2017). "Bismarck Tried to End Socialism's Grip—By Offering Government Healthcare". Smithsonian. Retrieved 30 January 2020.
^ O'Hara, Phillip (2003). Encyclopedia of Political Economy. 2. London: Routledge. p. 71. ISBN 9780415154260. "In order of increasing decentralization (at least) three forms of socialized ownership can be distinguished: state-owned firms, employee-owned (or socially) owned firms, and citizen ownership of equity."
^ Nove, Alexander (2008). "Socialism". New Palgrave Dictionary of Economics (2nd ed.). London: Palgrave Macmillan UK. ISBN 9780333786765.
^ Hayek, Friedrich; Hamowy, Ronald, ed. (2011) [1960]. "Why I am Not a Conservative". The Constitution of Liberty: The Definitive Edition. Chicago: Chicago University Press. pp. 1–2. ISBN 9780226315393.
^ Cite error: The named reference State Socialism 1891 page 2 was invoked but never defined (see the help page).
^ ^a ^b Taylor, A. J. P. (1955). Bismarck. The Man and the Statesman. London: Hamish Hamilton. p. 202. "Since he could not shake the Centre, he would win over the Social Democrats—not certainly by appealing to their leaders, whom he was persecuting and sending to prison, but by a constructive social programme, which he hoped would detach the working-class voters from the Social Democratic party. It would be unfair to say that Bismarck took up social welfare solely to weaken the Social Democrats; he had had it in mind for a long time, and believed in it deeply. But as usual he acted on his beliefs at the exact moment when they served a practical need. challenge drove him forward. He first avowed his social programme when Bebel taunted him with his old friendship with Lassalle. He answered by calling himself a Socialist, indeed a more practical Socialist than the Social Democrats; and he provocatively rejoiced in echoing Frederick the Great's wish to be le roi des guex, king of the poor. Richter, the Progressive leader, called Bismarck's proposals 'not Socialistic, but Communistic'. The proposal was merely that part of the cost of Socials Insurance should be borne by the state; and nowadays Bismarck seems the progressive, Richter the unenlightened reactionary".
^ Taylor, A. J. P. (1955). Bismarck. The Man and the Statesman. London: Hamish Hamilton. p. 203.

[1] Bismarck, Otto (15 March 1884). "Bismarck's Reichstag Speech on the Law for Workers' Compensation". German History in Documents and Images. Retrieved 27 December 2019.

[2] Gregory, Paul R.; Stuart, Robert C. (2003). Comparing Economic Systems in the Twenty-First Century. Nashville: Southwestern Publishing House. p. 207. ISBN 9780618261819. "Chancellor Otto von Bismarck introduced social welfare legislation in Germany between 1883 and 1888, despite violent political opposition, as a direct attempt to stave off Marx's (prediction of a) socialist revolution".

[3] Feuchtwanger, Edgar (2002) [1970]. Bismarck. London: Routledge. p. 221. ISBN 9780415216142.

[4] "Developmentalisms | Ernest Ming-Tak Leung". Phenomenal World. 18 September 2021. Retrieved 2021-09-19.

[5] Boissoneault, Lorraine (14 July 2017). "Bismarck Tried to End Socialism's Grip—By Offering Government Healthcare". Smithsonian. Retrieved 30 January 2020.

[6] O'Hara, Phillip (2003). Encyclopedia of Political Economy. 2. London: Routledge. p. 71. ISBN 9780415154260. "In order of increasing decentralization (at least) three forms of socialized ownership can be distinguished: state-owned firms, employee-owned (or socially) owned firms, and citizen ownership of equity."

[7] Nove, Alexander (2008). "Socialism". New Palgrave Dictionary of Economics (2nd ed.). London: Palgrave Macmillan UK. ISBN 9780333786765.

[8] Hayek, Friedrich; Hamowy, Ronald, ed. (2011) [1960]. "Why I am Not a Conservative". The Constitution of Liberty: The Definitive Edition. Chicago: Chicago University Press. pp. 1–2. ISBN 9780226315393.

[State_Socialism_1891_page_2-9] Cite error: The named reference State Socialism 1891 page 2 was invoked but never defined (see the help page).

[Taylor_1955,_p._202-10] Taylor, A. J. P. (1955). Bismarck. The Man and the Statesman. London: Hamish Hamilton. p. 202. "Since he could not shake the Centre, he would win over the Social Democrats—not certainly by appealing to their leaders, whom he was persecuting and sending to prison, but by a constructive social programme, which he hoped would detach the working-class voters from the Social Democratic party. It would be unfair to say that Bismarck took up social welfare solely to weaken the Social Democrats; he had had it in mind for a long time, and believed in it deeply. But as usual he acted on his beliefs at the exact moment when they served a practical need. challenge drove him forward. He first avowed his social programme when Bebel taunted him with his old friendship with Lassalle. He answered by calling himself a Socialist, indeed a more practical Socialist than the Social Democrats; and he provocatively rejoiced in echoing Frederick the Great's wish to be le roi des guex, king of the poor. Richter, the Progressive leader, called Bismarck's proposals 'not Socialistic, but Communistic'. The proposal was merely that part of the cost of Socials Insurance should be borne by the state; and nowadays Bismarck seems the progressive, Richter the unenlightened reactionary".

[11] Taylor, A. J. P. (1955). Bismarck. The Man and the Statesman. London: Hamish Hamilton. p. 203.

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