Social Security Guarantees Nothing

In the late 19th century, Otto von Bismarck, Chancellor of the German Empire, simultaneously implemented two contradictory policies. One was the Anti-Socialist Law, which authorized the dissolution of organizations connected to socialist parties and allowed the police, at their own discretion, to ban printed materials or gatherings that supported socialism. The other was social legislation, through which “social safety nets” such as national health insurance, workers’ accident insurance, and pension systems were introduced.

“The social security system … has nothing whatsoever to do with what is ‘social,’ nor does it have anything to do with the meaning of ‘security.’” – Milton Friedman,

Bismarck is known as a conservative and right-wing politician, so why did he engage in the seemingly contradictory act of banning the activities of socialist parties while introducing socialist institutions? Bismarck feared that if the new classes that had grown through Germany’s rapid industrialization at the time gained political and economic power, the political standing of the existing elites would be threatened. Thus, while advancing social legislation, he also suppressed the parties that appeared likely to benefit from it.

Was the first social security system implemented to improve the quality of life of the people? It was not. Nevertheless, one might ask: if it can improve quality of life, should it not still be implemented? Even so, the answer does not change. The social security system guarantees nothing; it merely delegates the authority over my decision-making to the government and a small number of power holders.

“(The social security system) was instituted on the grounds that ordinary people are helpless regarding their own future and scarcely concern themselves with it, so that unless they are compelled by the government to contribute to a fund … all of them would have to become the responsibility of the state.” – Milton Friedman,

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Original title: 사회보장제도는 아무것도 보장하지 않는다

Author: Ja-yujuui Ipmun Dokseotoronmoim

Date: 2023-05-09

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=reading01&pn=3&idx=25613