Editing German Empire (section)

=====Social reform=====
Bismarck built on a tradition of welfare programs in Prussia and Saxony that began as early as in the 1840s. In the 1880s he introduced old-age pensions, accident insurance, medical care and unemployment insurance that formed the basis of the modern [[European welfare state]]. He came to realize that this sort of policy was very appealing, since it bound workers to the state, and also fit in very well with his authoritarian nature. The social security systems installed by Bismarck (health care in 1883, accident insurance in 1884, invalidity and old-age insurance in 1889) at the time were the largest in the world and, to a degree, still exist in Germany today.

Bismarck's paternalistic programs won the support of German industry because its goals were to win the support of the working classes for the Empire and reduce the outflow of immigrants to America, where wages were higher but welfare did not exist.<ref name=Hennock/><ref>{{Harvp|Beck|1997}}.{{page needed|date=May 2025}}</ref> Bismarck further won the support of both industry and skilled workers by his high tariff policies, which protected profits and wages from American competition, although they alienated the liberal intellectuals who wanted free trade.{{Sfnp|Spencer|1979|pp=40–64}}{{Sfnp|Lambi|1962|pp=59–70}}