The History Of Social Insurance : Germany
The History Of Social Insurance : Germany
Social insurance in Germany dates from the Middle Ages, when miners first set up joint funds to support needy colleagues after accidents at work. But it was not until the late 19th century that a comprehensive social insurance scheme emerged. It was triggered by Germany’s industrial revolution, which had greatly increased the number of industrial workers. These workers were virtually without protection, as their low wages made it impossible for them to amass any savings to fall back on in the event of illness or accident.
Their precarious position became a domestic issue, prompting the Reich Chancellor, Otto von Bismarck, to introduce progressive social welfare legislation. His motives were also political, for he wanted to take the wind out of the sails of a growing labor movement. This legislation laid the foundation for a modern social insurance scheme which has also served as a model for other industrial countries.