Before Denmark finally achieved parliamentary democracy in 1901, it was already well on the way to becoming a thorough-going welfare state and was, until about the Second World War, a leader in developing the institutions and ideology of welfare capitalism. The contrast with the United States, where democratic political institutions are much older, but where welfare institutions have developed more slowly and in very different form, is striking. The two countries, of course, vary enormously in size and circumstances, but as with any industrializing nation, they have some things in common: cities, an urban poor, an organized demand for the passage of social welfare legislation. A comparative view may reveal aspects of each country in sharper perspective than an examination of either in isolation. The question is: How is it that welfare institutions were so much more intellectually available in Denmark than in the United States? The conclusion is that institutions of modern welfare capitalism in Denmark were designed to resemble as much as possible traditional pre-democratic—and pre-socialist—Danish institutions, and that the institutions were successful precisely because they did not require any break with historical continuity and fit so well into long-familiar traditions and habits of thought.