Evening star., 1945-08-12
Social Security Act Proves
Its Value in First Decade
Law Born in Emergency Justifes Faith of Sponsors
byAid to Those in Need d-Expansion
of Coverage Likely
By Gould Lincoln

tne Federal and State governments
have developed a program amazingly
broad in the field of insurance against
the risks of individual members of So
ciety-but which calls for still further
broadening. This does not mean that
many important steps for the security
Of the members of society in this coun-
try had not been taken previously. Many
had been from the time when the first
hospital and the first public school were
constructed. But this Federal law
marked distinct beginning, distinct
effort at a national program, with the
Federal Government and the States
participating.
This law came from a Congress and
a President stimulated to action by
conditions which burdened millions of
Americans-the great depression of the
early '30S. Since the inception of
the social security program, this coun-
try has gone from the depths of de-
preston and unemployment to wartime
full employment and high wages. 1t is
about to face the postwar period, with
all the risks to the worker and to man.
agement implicit in a period of con-
version from wartime to peacetime
economy
II reconversion can be made without
great dislocation and unemployment
the social security program will func-
tion as it has in recent years-in more
or less normal way. But if, as is entirely
probable. the period of reconversion be-
comes one of great stress-resembling
IN a measure a period of depression
hen the program may, indeed, become
he life-jacket of the people
Asks Wider Jobless Benefits.
One the eve of this postwar period,
President Truman has called on Con-
gress to widen the coverage of unem-
ployment compensation to include Fed
eral employees, maritime workers and
other workers, their benefits to be ad-
ministered by the States, but to be
financed entirely from the Federal Gov
ernment. He recommended, too, that
Congress supplement, out of Federal
funds, existing benefit provisions up to
maximum of at least $25 a week for
a claimant with dependents, and for as
much as 26 weeks for workers who re-
main unemployed.
In both Senate and House are pend
ing identical bills which immensely
widen the scope of the social security
program, sponsored in the Senate by
Wagner of New York and Murray of
Montana, and in the House by Dingell
of Michigan. 1t is Senator Wagners
conviction that 10 years of experience
with the Social Security Act have DEM
onstrated that people can be insured
against the major causes of want. He
is further convinced that social in
surance has not interfered with the
country's system of free enterprise.
1t remains, however, that the Wagner
Murray-Dingen bill has been dubbed
by. It's opponents "the cradle to the
grave" bill. The charge has been made
against it that it will too heavily burden
the taxpayers and the industry of the
country. There seems no doubt how
ever. that with the return of Congress
to Washington after its present vaca-
lon-a return which may be early due
to Japanese defeat-strenuous efforts
ill be made to have this legislation COLI
'idered and put through.
System Proves Itself.
The system of security for individual
members Of society as now set up is not
a huge charitable organization. 1t is a
system-a machinery set up by govern
ment-to meet risks growing out of
wage loss due to unemployment re-
tirement and death, and to meet the
requirements of old age. To this sys-
tenn the members of our society must
contribute-whether they be workers or
employers. Indeed, all individuals con-
tribute to the system either through
direct or indirect taxation. The new
bill now pending not only extends the
coverage of the basic social insurance
structure to about 5000 900 persons now
excluded, such as farm workers, domes-
tics. seamen, employees of nonprofit in
stitutions, Independent farmers, pro-
fessional men and women and the small
businessman, but it also widens the
field of insurance to cover sickness and
disability and disqualification and medi-
cal care, and it greatly strengthens the
employment agencies of the govern
ments.
The social security system-which Is
In reality system of social insurance
has proved itself in the last decade,
its friends insist. 1t embraces two in
surance programs and three public as
sistance programs. The insurance pro-
grams are: First, unemployment COM
pensation, and second, old-age and sur
vivors' insurance. Unemployment COM
pensation or insurance is run by the
States, under each States own law, with
the Federal Government paying the
major costs of administration. It is de-
signed to replace partially the wages
lost during brief periods of unemploy-
ment. to keep families going and to
maintain purchasing power.
Old-age and survivors insurance, on
the other hand, is Nationwide Fed
orally operated system, designed to
replace part of the wages lost when
insured workers grow too old to work,
or when breadwinners die. 1t protects
the family as well as the worker.
10000, 900 Are Covered.
The public assistance programs are:
I'd Old-age assistance, which goes to
aged persons who were not covered by
old-age and survivors insurance. now
operated by 48 States, the District of
Columbia, Hawaii and Alaska; 90 aid
to dependent children, operated by At