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Otto Von Bismarck, "Direct Provision for the Workers" (1884)

Dominating the political system of the newly formed country of Germany was its chancellor, Otto von Bismarck. Bismarck was remarkably skilled at keeping control over the country's parliament and maintaining an essentially conservative order against pressures for political change. One of the main threats to the system came from the growing and increasingly well_organized socialist movement, led by the Social Democratic Party. Although Bismarck's government used repressive measures when necessary, it also showed considerable flexibility. Here, the chancellor explains his thinking on the social question in a speech to the parliament.

The positive efforts began really only in ... 1881 ... with the imperial message ... in which His Majesty William I said: "Already in February of this year, we have expressed our conviction that the healing of social ills is not to be sought exclusively by means of repression of Social Democratic excesses, but equally in the positive promotion of the workers' welfare...."
In consequence of this, first of all, the insurance law against accidents was submitted.... And ... it reads ... "But those who have, through age or disability, become incapable of working have a confirmed claim on all for a higher degree of state care than could have been their share until now...."
Our plan of reform . . . cannot be implemented in a short time; it needs a period of years for its accomplishment. We have moved to improve the laborers' position in three directions. One, at a time when opportunity for work is slight and wages have become low, we have taken the necessary steps to protect work in our native land against competition; in other words, we have introduced protective tariffs to protect domestic labor. As a result of these measures, a real improvement of wages and a reduction of unemployment has taken place. . . . I believe this event must have a considerable effect in the quieting down of socialist efforts. The person who still remembers the period from 1877 and 1878 and the conditions at the time will not deny that even in foreign writings the hope of connecting their revolutionary plans to the workers' dissatisfaction has declined to some degree. Therefore, this protective tariff system has usefulness for the goal.
        A second plan . . . is the improvement of tax conditions. . . [Sales taxes] have earlier destroyed and broken down many small individuals in the working class and the few pennies they brought in taxes . . . were the reason why a family . . . was thrown back into want....
The third branch of reforms . . . lies in direct provision for the workers. The question of labor time and wage increases is extraordinarily difficult to solve through state intervention, through legislation at all; for in any settlement one makes, one runs the danger of interfering very considerably and unnecessarily in the personal freedom of getting value for one's services.... Then the worker suffers from that as well as the entrepreneur. That therefore is the governing borderline, and every legislative intervention must stop before that.... The worker's real sore point is the insecurity of his existence. He is not always sure he will always have work. He is not sure he will always be healthy, and he foresees that some day he will be old and unable to work. But also if he falls into poverty as a result of long illness, he is completely helpless with his own powers, and society has not yet recognized a real obligation to him beyond ordinary poor relief, even when he has worked ever so faithfully and diligently before. But ordinary poor relief leaves much to be desired, especially in the great cities where it is extraordinarily much worse than in the country.... We read in Berlin newspapers of suicides because of difficulties in making ends meet, of people who died from direct hunger and have hanged themselves because they have nothing to eat, of people who announce in the paper they were tossed out homeless and have no income. .
For the worker it is always a fact that falling into poverty and onto poor relief in a great city is synonymous with misery, and this insecurity makes him hostile and mistrustful of society. That is only natural, and as long as the state does not meet him halfway, this trust in the state's honesty will be taken from him by accusations against the government, which he will find where he wills; always running back again to the socialist quacks ... and, without great reflection, letting himself be promised things, which will not be fulfilled. On this account, I believe that accident insurance û with which we show the way, especially as soon as it covers agriculture completely, the construction industry above all, and all trades û will still work to reduce the working class's anxieties and ill_feelings. The sickness is not entirely curable, but when we suppress its external symptoms by coercive legislation, we only arrest it and drive it inward....
[We act] out of duty and to fulfill the duty of Christian legislation. On the progressive side, you call it "socialist legislation"; I prefer the term "Christian." At the time of the Apostles, socialism went very much further still. If perhaps you will read the Bible once, you will find out various things about it in the Acts of the Apostles. I don't go as far in our own times. . . . [We hope that] . . . the real grievances, the real hardships of fate, about which the workers have to complain, will be alleviated and will be redressed....