Origins of the Welfare State in America—Rothbard

“Ideology was propelled by an intensely held religious
doctrine that swept over and controlled virtually all Protestant
churches, especially in “Yankee” areas of the North, from 1830
on. Likewise, a growing corollary ideology of statism and
corporate socialism spread among intellectuals and ministers by
the end of the 19th century. Among the economic interests
promoted by the burgeoning welfare state were two in particular.
One was a growing legion of educated (and often overeducated)
intellectuals, technocrats, and the “helping professions” who
sought power, prestige, subsidies, contracts, cushy jobs from the
welfare state, and restrictions of entry into their field via forms

of licensing. The second was groups of big businessmen who, after
failing to achieve monopoly power on the free market, turned to
government—local, state, and federal—to gain it for them. The
government would provide subsidies, contracts, and, particularly,
enforced cartelization. After 1900, these two groups coalesced,
combining two crucial elements: wealth and opinion-molding
power, the latter no longer hampered by the resistance of a
Democratic Party committed to laissez-faire ideology. The new
coalition joined together to create and accelerate a welfare state
in America. Not only was this true in 1900, it remains true today.”

pp. 197-198.