CAPITALISM IN TIMES OF CRISIS

Abstract

This article investigates how Danish industrialists responded to the rise of the modern state in the decades up until the Second World War, a period in which many of the basic principles of liberal capitalism were called into question, and in which the relationship between the state and the economy underwent major changes in all Western societies. It argues that the industrialists remained firm believers in classical liberalism and, on that ground, opposed growing state intervention as a slide towards socialism. The article has an emphasis on their reactions to calls for social policy initiatives, and it shows that the industrialists typically opposed such initiatives, either on pure ideological grounds or as conflicting with the economic competitiveness of Danish firms. When accommodation to selected demands for a stronger state did take place, it was typically in periods of crisis, the most important being the years just after the First World War. The interwar years did, however, see some approbation to increasing state intervention in the economy, and in the 1930s the idea of cooperation with the state entered their rhetoric. Thus, the article argues that the rhetoric and narratives gradually changed, while the ideological core did not.