Despite paid contributions – how Hartz IV made unemployment a private matter

On September 9, 1982, the Lambsdorff paper was published, which, in the context of the “spiritual and moral change” promised by Helmut Kohl, led to the privatization of employment relationships. This turnaround was a central political strategy with which Kohl determined the direction of the federal government when he took office in the autumn of 1982. The motto of the new government was allegedly: “LessState, more market”. The catalog of demands, which today also entered the annals as the “divorce paper” of the social-liberal coalition, was primarily directed against the reforms that had been implemented during Willy Brandt’s chancellorship.

Contents of the strategy paper: Measures against the social-liberal course

The influential Federal Minister of Economics at the time, Otto Graf Lambsdorff (FDP), who died in 2009, demanded in this strategy paper, in addition to a clear tightening of the reasonableness rules for the unemployed and a stronger administration of unemployment assistance by the social welfare offices, a “reduce to the work factor”. The aim was to reduce thesocial benefit rate. The welfare state architecture, which some neoliberal supporters describe as a “welfare dictatorship”, was to be finally abolished. When studying the memorandum, the question arises as to whether this is also a kind of script for the current economic and social policy, since the measures of the later federal governments strongly matched thematch catalog of actions.

Reforms in detail: From limit to excess

The Lambsdorff paper listed almost all “social cruelties” that were later implemented by the subsequent governments. It envisaged a time limit of the period of subscription for unemployment benefits to twelve months, introduced a demographic factor to reduce the amount of the pension and demanded a stronger deductible in the healthcare system. These suggestions wereAll realized and shape the German social policy to this day.

Hartz IV: The Legislative Package that went beyond the catalog of claims

Only the legislative package of the red-green coalition, known as “Hartz IV”, went one step further. It abolished unemployment benefit and reduced unemployment benefit II to social welfare level. The Christian-liberal coalition (1982-1998) had already tried several times to make the labor market more flexible and to cut social benefits.

Hartz reforms: Basic changes under Schröder

Under Chancellor Gerhard Schröder, the Hartz reforms made far-reaching changes in labor market policy – much to the surprise of the voters, who had voted out the government with the hope of a departure from the privatization of social policy. The “social democratic variant” of the reduction in welfare state was already announced during the election campaign. With the “new center”the SPD was oriented towards the British Labor Party, which achieved an overwhelming victory in the elections on May 1, 1997.

The rise of the New Labor and social reality

Significantly, the voters of the British “Work Party” were also disappointed: On Labor Day, Tony Blair was elected Prime Minister, whose party reorientation towards “New Labor” deteriorated the social conditions of the working population, rather than improving them in the sense of traditional social-democratic principles.

The “Schroeder Blair Paper” and the ideological realignment

The “Schröder Blair Paper” published on June 8, 1999 and the decision of the federal cabinet entitled “Modern State – Modern Administration” based on this, formulated the model of an “activating welfare state”. This began a clear ideological realignment in labor market policy. A decisive contribution to the disdain of the Western European welfare statewas done by Schröder’s campaign strategist Bodo Hombach, who was extremely controversial within the SPD.

Hombach, the power strategist: fight for the direction of the party

Already during the election campaign, Hombach intervened in the party’s internal power struggle with his book “Aufbruch – Die Neuen Mitte’s Politics”. With his appointment as head of the Chancellery, Schröder created a counterweight to the Federal Minister of Finance, Oskar Lafontaine, who was more popular within the party, in order to take the “third way” in the direction of a lean (social) state.

The power struggle and succession of Brandt

After Willy Brandt, who was considered the “father” of the social-liberal reforms and was described by a British tabloid as the “most dangerous man in Europe”, had resigned from all offices, Schröder had won the power struggle. After a short time, he replaced the polarizing Hombach with Frank-Walter Steinmeier (SPD). Today’s Federal Foreign Minister had alreadyAdvisor in the Lower Saxony State Chancellery and was significantly involved in the conception of the Hartz reforms and the “Agenda 2010”.

Continuity of the Neoliberal Politics

The developments since 1982 show how deeply the neoliberal turn is rooted in German social and labor market policy. From the first demands in the Lambsdorff paper to the comprehensive reforms under Schröder, a clear line was followed: The goal of weakening the welfare state and strengthening the market was consistently implemented.