The role of the state in capitalist societies has been a considerable bone of contention among scholars. The two founding fathers of sociology held radically opposing views on the subject, which were reflected in the numerous debates over subsequent decades to this day. Yet, no answer has been found to the vexing question: on whose side is the state in capitalist societies?

The author examines current theories and, comparing Britain and Germany, shows that such theories cannot explain the contradictory social and industrial policies in these two countries during the twentieth century. Based on in-depth archival and secondary sources, an alternative theoretical framework is offered by the author - one that focuses on the interactions of certain historical contingencies, the global cultural context, and political processes.