The Impact of War on Welfare State Development in Germany

The world wars were important ‘pacemakers’ of welfare state development in Germany—first and foremost via special wartime or post-war benefit regimes. Veterans’ pensions and reinsertion after World War I and compensation of various war victims after World War II massively increased social spending for decades. Whenever war did have a significant impact on the core welfare state programmes (i.e. the big social insurance schemes), it was through indirect and long-term rather than direct, short-term dynamics. Labour mobilization via the involvement of trade unions and the significant expansion of wartime social assistance and social services during World War I, for example, paved the way for the expansion of the welfare state in the Weimar Republic (such as unemployment insurance in 1927). Social policy during World War II targeted benefits towards soldiers’ families and ethnic German victims, but it was far from the ‘dictatorship of favours’ Götz Aly describes.