War and Welfare Europe and the United States, 1945 to the Present

From belligerent to neutral countries, the civilian war economy that developed from 1939 to 1945 created the foundations for the postwar welfare state. War and Welfare examines the legacy of the 'warfare state' and reveals how it paved the path for the we

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Jytte Klausen

WAR AND WELFARE

Copyright © Jytte Klausen, 1998. All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles or reviews. First published in hardcover in 1998 by St. Martin’s Press First PALGRAVETM edition: March 2001 175 Fifth Avenue, New York, N.Y. 10010 and Houndmills, Basingstoke, Hampshire, England RG21 6XS Companies and representatives throughout the world. PALGRAVE is the new global publishing imprint of St. Martin’s Press LLC Scholarly and Reference Division and Palgrave Publishers Ltd (formerly Macmillan Press Ltd). ISBN 978-0-312-23883-4 ISBN 978-0-312-29988-0 (eBook) DOI 10.1057/9780312299880

Library of Congress Cataloging-in-Publication Data Klausen, Jytte. War and welfare: Europe and the United State, 1945 to the present / by Jytte Klausen. p. cm. Included bibliographical references and index. 1. Europe—Economic conditions—1945– 2. Capitalism—Europe— History. 3. Welfare state—Europe—History. 4. Central planning— Europe—History. I. Title. HC240.K531998 338.94’009’045—dc21 98–3792 CIP A catalogue record for this book is available from the British Library. Internal design and typesetting by Letra Libre First paperback edition: March 2001 10 9 8 7 6 5 4 3 2 1

CONTENTS

Acknowledgments

v

1

Reconstruction and Capitalist Reform

1

2

Great Britain: Labour’s Spoils of War

25

3

Great Britain:The Socialist Economy in the Free Society

59

4

Sweden:War and Economic Thinking

95

5

Sweden: From the Planned Economy to Societal Coordination

129

6

Germany: Planning the Social Market Economy

165

7

War, Citizenship, and American Exceptionalism

209

8

The Postwar State and National Economic Development

243

Notes Bibliography Index

283 305 333

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Acknowledgments

his book has taken a long time to write, and I have accumulated many moral debts. The largest one goes to my family, to my husband Alan and my three children, Rebekka, Jan, and Andreas. I do not think there has been any wife and mother who has had a more supportive family than I have. I extend my thanks for support to Brandeis University, the Mazer Fund and the Marver Bernstein Fund, which have supported me financially at various stages.Thanks to the Bunting Institute at Radcliffe College and the Minda de Gunzburg Center for European Studies, Harvard University, which have housed me. I am grateful to my colleagues in the Department of Politics at Brandeis, who supported me with special thanks to Sid Milkis, Mark Hulliung, George Ross, and Steve Burg. John D. Stephens, Robert O. Keohane, Carl Strikwerda, Cathie Jo Martin, and an anonymous reader, whose comments on the manuscript helped me greatly, have also earned my gratitude. Loren Cass and Susan Schantz, my graduate student assistants at Brandeis, helped me with a cheerful competence that helped keep me sane. My two Radcliffe Research Partnership associates, Lucia Bigelow and Margaret Schotte, did a wonderful