historyOur World in Data20th century

Governments spent almost nothing on social services until the 20th century

the gist

For most of the late 19th century, governments barely paid for social services such as pensions, healthcare and unemployment support. At the time, countries spent at most one or two percent of their national income on them. Over the 20th century that share rose dramatically, and public social spending became one of the largest items in many national budgets. The shift was gradual and uneven, with rich countries building welfare states at different speeds. Germany under Otto von Bismarck was an early pioneer, creating state health insurance in 1883, accident insurance in 1884 and old-age pensions in 1889. Our World in Data charts this long climb from almost nothing to the welfare systems most people now take for granted.

so what

Modern debates about taxes, retirement and healthcare all rest on a relatively recent expansion of the state. Seeing how little governments spent so recently puts today's systems in historical perspective.

fun fact

Germany introduced compulsory health insurance in 1883 under Bismarck, one of the earliest national social insurance schemes in the world.

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