THE FIRST WORLD WAR AND THE REGULATORY STATE

It is well-established in various strands of historiography that the First World War was a formative phase in the evolution of the modern state. This article deals with the Danish case, in which the politics of neutrality made a previously unseen kind of economic regulation necessary. This led to a heated debate about the functions and role of the state, especially its role in economic life. On the one hand, the Social Liberals in government saw the great potential of economic regulations, and their experiences during the war confirmed their beliefs in the importance of a strong state in dealing with the problems of capitalism; on the other, liberals and conservatives began to voice strong criticism of this slide towards stronger state control. Hence different visions of the role of the state came to be the dividing line between Left and Right, and the ideologies of the liberal and conservative Right were redefined in direct opposition to socialism and economic regulation.