So far as I remember, social security and state run healthcare had its origins in the racial belief's of the 19th century kaiser. It had something to do with the Germans being racially superior so the state should take care of the trifles of life so the full flower of German superiority could bloom.
When times were good, I suppose it worked well enough but when hard times hit and more and more people were relying on the social welfare services, well, it led to quite a bit of strife.