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A century ago, any worker who could no longer maintain gainful employment because of injury or illness had little recourse but to charity. Many could only take to the streets, where 15 percent of the population of the industrial cities eked out a living until death ended their struggle. Fear of this fate drove the development of the insurance industry and the labor movement. It also nurtured political movements such as Marxism and socialism. The Prussian government under Otto von Bismarck outlawed the socialists. But wary of further alienating labor, Bismarck created a "welfare monarchy" as a trade-off.
A century
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