When soundly conceived, each class of insurance can perform its role better because of the other two classes. Although Hohaus appears to be the creator of the three-legged stool metaphor, the basic concept which the metaphor expresses was clearly understood and widely shared by the creators of the Social Security program. The social insurance approach is to assure that the benefits would provide a minimum protection, leaving to the individuals the responsibility of buying additional protection from private sources through their private means. This seeking for a greater measure of welfare and happiness does not indicate a change in values. It is rather a return to values lost in the course of our economic development and expansion.
Ample scope is left for the exercise of private initiative.
It is, of course, clear that for perhaps thirty years to come funds will have to be provided by the States and the Federal Government to meet these pensions. Second, compulsory contributory annuities which in time will establish a self-supporting system for those now young and for future generations. Third, voluntary contributory annuities by which individual initiative can increase the annual amounts received in old age. This aspect of the Administration's proposal was not adopted by Congress. None of the sums of money paid out to individuals in assistance or in insurance will spell anything approaching abundance.