Milton Friedman - Emergence of the modern welfare state

From the book,
FREE TO CHOOSE
Milton Friedman and Rose Friedman


THE EMERGENCE OF THE MODERN WELFARE STATE
The first modern state to introduce on a fairly large scale the kind of welfare measures that have become popular in most societies today was the newly created German empire under the leadership of the Iron Chancellor, Otto von Bismarck. In the early 1880s he introduced a comprehensive scheme of social security, offering the worker insurance against accident, sickness, and old age. His motives were a complex mixture of paternalistic concern for the lower classes and shrewd politics. His measures served to undermine the political appeal of the newly emerging Social democrats.

It may seem paradoxical that an essentially autocratic and aristocratic state,
such as pre-World War I Germany, in todays jargon, a right-wing dictatorship, should have led the way in introducing measures that are generally linked to socialism and the Left.
But there is NO PARADOX, even putting to one side Bismarcks political motives. Believers in aristocracy and socialism share a faith in centralized rule, in rule by command rather than by voluntary cooperation. They differ in who should rule: whether an elite determined by birth or experts supposedly chosen on merit. Both pro claim, no doubt sincerely, that they wish to promote the well-being of the general public, that they know what is in the public interest and how to attain it better than the ordinary person. Both, therefore, profess a paternalistic philosophy. And both end up, if they attain power, promoting the interests of their own class in the name of the general welfare.

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[westnblu]

Welfare destroys human drive and ultimately human dignity. This will lead 2 the destruction of western civilisation .

[MichaelJ9999]

Does the capitalist class not promote its own interest in the name of the 'general welfare'?

[OnlyAPawn1970]

@westnblu Damn right.

[RealRacer69]

@MichaelJ9999 Have you considered an investment in a dictionary. Capitalist is not a class but an ideological belief. Just like many socialists, many capitalists proclaim their belief because they think it will help everybody, and just like many socialists, many capitalists proclaim their beliefs as it is in their own self interest.

[ShamanMcLamie]

@skydive009 I'll tell you the loopholes are very much real and happen all through out the economy, but here is something you can agree with. The loopholes are not created for every rich person. They are often created and tailored for specific groups and interests that lobby in government giving some groups advantage over others. I'm all for lowering taxes and reducing government, but I believe loopholes from government need to be eliminated giving no one a corrupt special advantage.

[bkelleher91]

@westnblu Being in Europe I can tell you you're wrong, There are treaty changes and economic restructuring on the agenda but not abolition or "replacement". Several of the new member states want to join it - Romania as well as Croatia and Iceland once they get in. So yes, it is set to replace the dollar.

India is the world's largest democracy. Brazil is also a democracy. No defending China's human rights but they are a powerful economy nonetheless. To be in the EU you have to be a democracy.

[westnblu]

@bkelleher91 Euro set 2 replace dollar? U serious? Many in Europe want the Euro itself replaced!! Dont u c the news? U make some valid points but the US will always be the beacon of light 4 the downtrodden all over the world. The US has something more important than money it has freedom and democracy something many other countries u mention dont!

[bkelleher91]

@westnblu What makes you so qualified then? You can't even spell. I'm speaking from personal experience of having lived in the USA as well as various European countries. Massive rich/poor divide in USA, no capital spending outside the military and little investment in education - 3 problems libertarian philosophies can't solve and that Europe doesn't have. It's not the most powerful for much longer - Euro set to replace dollar as world's main reserve currency, emergence of India/China/Brazil etc

[westnblu]

@bkelleher91 Yes but the US is still the worlds strongest and most powerful democracy and despite wot u hear STILL by far the richest country in the world!! So u can continue believing the leftist media propaganda or u can get the facts from me! The choice is yours!!

[bkelleher91]

@westnblu Which society/ies do you think is/are more damaged, the USA or those of EU/Australian/New Zealand etc?

Think about the United States - the crime, lack of infrastructure leading to overreliance on cars, overreliance on the military-industrial complex (essentially a form of Keynesian pump-priming), 40% of the population believing the Earth is 6000 years old, teacher unions, expensive colleges etc.

The EU has almost none of the above problems and is consisted mainly of welfare states.

[Bleakfacts]

@MichaelJ9999 You mean the wealthy. Every one who trades is part of the free trade class. Which is fitting since everybody Works for their own interest by providing a service to a Specific few, willing to trade. Rich people just provide a service that's of high demand so has a greater value. If there were more Bill Gates and Rockefellers in the world the value would go down due to a larger supply and we'd all be much better off from their numerous contributions to society.

[Fearwolf]

thanks for providing subtitles