In the Telegraph, Daniel Hannan shows that the wartime coalition government led by Winston Churchill actually laid the groundwork for the post-war “creation” of the welfare state:
It wasn’t the 1945 Labour Government that created the welfare state, that Saturn which now devours its children. The real power-grab came in 1940.
With Britain’s manpower and economy commandeered for the war effort, it seemed only natural that ministers should extend their control over healthcare, education and social security. Hayek chronicled the process at first hand: his Road to Serfdom was published when Winston Churchill was still in Downing Street.
Churchill had become prime minister because he was the Conservative politician most acceptable to Labour. In essence, the wartime coalition involved a grand bargain. Churchill was allowed to prosecute the war with all the nation’s resources while Labour was given a free hand to run domestic policy.
The social-democratic dispensation which was to last, ruinously, for the next four decades — and chunks of which are rusting away even today — was created in an era of ration-books, conscription, expropriations and unprecedented spending. The state education system, the NHS, the Beveridge settlement — all were conceived at a time when it was thought unpatriotic to question an official, and when almost any complaint against the state bureaucracy could be answered with “Don’t you know there’s a war on?”
All quite true, and all quite necessary at the time. Without significant amounts of imported food, Britain could not feed its people. Even with imports, the amount of available food was subject to unpredictable fluctuations as losses at sea interrupted supply and left empty shelves in grocery stores. Although losses were relatively low early in the war (early U boats were unable to stay at sea for long periods, and German bases were a long way from most British trade routes), the writing was on the wall if the war continued for years.
To fight a totalitarian regime, Britain had to emulate some of its methods (ironically, full rationing wasn’t introduced in Germany until much later in the war). For the middle classes, this was an unwelcome intrusion of the state into private affairs, but generally accepted due to the war. For the working classes, in many cases it was actively welcomed. While the rations were small, there was the promise — and generally a fulfilled promise — that some would be made available even in the poorest areas of the country. My mother was nine when the war began, and she remembers seeing more food in the stores of Middlesbrough after rationing was introduced. After the deprivations of the Great Depression, many people in the north and in Scotland were better fed and clothed during the rationing period than they had been for nearly a decade.
Given that information, it should not be surprising that so many people voted for Labour in the 1945 elections: they’d had what they believed to be a live demonstration of the benefits of socialism for six years of war, and didn’t want to go back to the pre-1940 status quo.
Well, it turns out that Social Security is a relatively minor part of the problem, so even though President Roosevelt’s policies exacerbated and extended the Great Depression, the program he created is only responsible for a small share of the fiscal crisis. To give the illusion of scientific exactitude, let’s assign FDR 13.2 percent of the blame.
