The Political Economy of Religion and Social Insurance in the United States, 1910–1939

Abstract

There are few scholars who would disagree with the proposition that individual economic position and economic risk play a critical role in shaping preferences for income redistribution and social insurance. There is less consensus, however, about the extent to which non-economic factors also influence individual preferences regarding social insurance provision. A number of scholars have examined how issues of race and identity have influenced the development of social insurance programs in the United States, as well as individual attitudes with respect to these programs. In a theoretical context, other authors have considered how attitudes toward income redistribution might also depend upon psychological dispositions such as the “belief in a just world.” In this article, we focus on religiosity as an important factor that can shape both individual preferences and policy outcomes regarding social insurance in the United States. To do so, we develop an argument about religion and social insurance as substitutes that draws both on existing work on the political economy of social insurance and on findings in social psychology regarding what we call the “coping effect” of religion. We test our hypothesis using historical evidence from two early social insurance policies: workers’ compensation legislation enacted by state governments between 1910 and 1930 and New Deal unemployment relief.