This article addresses the question of how ideas and interests can be linked in policy analysis. The juxtaposition of the two concepts is criticized from a sociological point of view. Instead, ideas are a substantial element of interest formation. Cognitive and normative worldviews shape the transformation of objective socio-economic positions into subjective, situational action orientations. Interests can be traced back to the interplay between structural positions, situational problems and their idea-based interpretation.
It is then shown how these conceptual arguments can bring forward a prominent debate in welfare state analysis: the role of business in the emergence of the American welfare state in the New Deal. While struggling with the question whether the supportive role of some business leaders in the Social Security Act of 1935 reveals substantial interest changes or strategical adaption, both sides of the debate suffer from an objectivist concept of interest. This one-sided concept of interest comes at the cost of leaving open the question of why business interests changed in the direction of unemployment insurance and not in the direction of other feasible institutional options such as price regulation or public works. These options would also have provided a solution to the problem American employers were facing. Analysis of social reform discourses between 1911 and 1935 shows that the partial reorientation of business people cannot be sufficiently explained without taking into account the growing legitimacy of liberal- corporatist ideas among employers in the 1920s.