re: The Conservative Myth of a Social Safety Net Built on Charity

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One problem with the conservative vision of charity is that it assumes the government hasn’t been playing a role in the management of risk and social insurance from the beginning. It imagines that there is some golden period to return to, free from any and all government interference. As Senator Lee has said, “From our very Founding, we not only fought a war on poverty—we were winning.” How did we do it? According to Lee, it was with our “voluntary civil society.” We started losing only when the government got involved.

This was never the case, and a significant amount of research has been done over the past several decades to overturn the myth of a stateless nineteenth century and to rediscover the lost role of the state in the pre-New Deal world.

The government’s footprint has always grown alongside the rest of society. The public post office helped unite the national civil society Alexis de Tocqueville found and celebrated in his travels throughout the United States. From tariff walls to the continental railroad system to the educated workforce coming out of land-grant schools, the budding industrial power of the United States was always joined with the growth of the government. The government played a major role throughout the nineteenth century in providing disaster relief in the aftermath of fires, floods, storms, droughts, famine, and more.

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Business risk management through the law was crucial in building out this nineteenth-century capitalist economy. The limited liability corporation, for instance, allowed for a massive expansion of passive investments, which provided necessary working capital for business. Charles William Eliot, the president of Harvard University, called this “the most effective legal invention for business purposes made in the nineteenth century.” Bankruptcy laws were introduced in the wake of nineteenth-century economic crises to allocate losses and help the economy move forward.

As for social insurance specifically, the historian Michael Katz has documented that there has always been a mixed welfare state made up of private and public organizations throughout our country’s history. Outdoor relief, or cash assistance outside of institutions, was an early legal responsibility of American towns, counties, and parishes from colonial times through the early nineteenth century. During this period, these issues were usually dealt with through questions of “settlement.” A community had a responsibility to provide relief to its own needy, native members, defined as those who had a settlement there. This became increasingly difficult with an industrialized society, as people moved to and fro looking for work and were forced out of communities when they couldn’t find any.

The next major initiative was the construction of poorhouses by state governments, especially in the early nineteenth century. The central idea was that by forcing people in need of aid to live in poorhouses where living conditions were quite harsh, there would be fewer applicants. This ended up not being the case, as able-bodied people would still seek out these poorhouses, especially when work was slack and unemployment high. Worse, these institutions became the default support for orphans, the mentally ill, and the elderly without income or family to support them.

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As the political scientist Theda Skocpol has documented, there were also multiple examples of state-issued social insurance programs before the New Deal. In the wake of the Civil War, Congress established an elaborate system of pensions for veterans. At its height in 1910, this de facto disability and old-age pension system delivered benefits to more than 25 percent of all American men over 65, accounting for a quarter of the federal government’s expenditures. Between 1911 and 1920, 40 states passed laws establishing “mothers’ pensions” for single women with children. These programs provided payments for needy widowed mothers in order to allow them to provide for their children.

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