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Businessman and Bureaucrat: The Evolution of the American Social Welfare System, 1900–1940

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  • Berkowitz, Edward
  • McQuaid, Kim

Abstract

Between 1900 and 1940, organized industry and the federal government, acting in conjunction with the states, created an American social welfare system. The two major participants in this process evolved along similar lines during this period. Both began as simple organizations and developed into complex, functional bureaucracies. At the beginning of the twentieth century, the federal government did not exist as a social welfare entity. Private corporations, the first to face the administrative and economic problems posed by the development of national markets, created social welfare systems for their employees long before the New Deal. Until the depression, these efforts enjoyed clear supremacy. By the end of the 1930s, however, a distinctly “public” social welfare bureaucracy and program had been developed on the federal level. Corporations and the state underwent similar changes but at different times, and the difference in timing influenced their relations. This essay describes the growth of these public and private bureaucracies and identifies their similarities and differences during the early twentieth century.

Suggested Citation

  • Berkowitz, Edward & McQuaid, Kim, 1978. "Businessman and Bureaucrat: The Evolution of the American Social Welfare System, 1900–1940," The Journal of Economic History, Cambridge University Press, vol. 38(1), pages 120-142, March.
  • Handle: RePEc:cup:jechis:v:38:y:1978:i:01:p:120-142_08
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    Cited by:

    1. Pisauro, Giuseppe, 2002. "The beneficial effects of generous unemployment benefits on profits and employment," European Journal of Political Economy, Elsevier, vol. 18(4), pages 739-760, November.
    2. Paster, Thomas, 2015. "Bringing power back in: A review of the literature on the role of business in welfare state politics," MPIfG Discussion Paper 15/3, Max Planck Institute for the Study of Societies.

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