THE SOCIAL WELFARE CONCEPT
It is difficult to fix limits to a discussion of social welfare
in the United States. This is primarily because social welfare is
such an all-embracing concept. It is also because the application
of this concept in a pluralistic society and a Federal-State system
of government, such as we have in the United States, is so varied
and complex.
Many people speak of social welfare as meaning the good life for
all members of society. This, of course, has been a dream of religious
leaders, philosophers, and statesmen since the dawn of civilization.
However, as Arnold Toynbee has said the twentieth century may well
be remembered not as the bloodiest century in history, but as the
first century in which people dared to thirds it practicable to
make the benefits of civilization available for the whole human
race.
At the other extreme, in the United States at least, the man on
the street may use the expression in a very narrow sense when he
speaks of "being on welfare." He, of course, is thinking only of
the receipt of public aid by indigent persons.
In this discussion, we shall not attempt to cover all programs
that may indirectly contribute to social welfare, but only those
programs which are directly concerned with the economic and social
well-being of individuals and families. In doing' so, we shall discuss
both governmental and non-governmental programs, but concentrate
largely on the governmental programs.
Social Security as Social Welfare
In the United States, the term "social security" is used to cover
a large portion of the field of social welfare. This term first
came into general use in the United States in 1935, during the Great
Depression, when the Social Security Act was passed. It quickly
achieved world-wide usage. It was included in the Atlantic Charter,
signed by the President of the United States and the Prime Minister
of Great Britain on August 14, 1941, and later adhered to in the
Declaration of Philadelphia by twenty-six Allied governments at
the International Labor Conference in 1944. It has been included
in the constitution of many of the new nations which cane into existence
after World War II as a major responsibility and objective.
The term "social security" has sometimes been used synonymously
with "social welfare" in its widest sense. It is also used in a
more restricted sense to mean a government program designed to prevent
destitution by providing protection against major personal economic
hazards such as unemployment, sickness, invalidity, old age, and
the death of the breadwinner. In this sense, social security is
primarily an income maintenance program which, in addition to providing
cash benefits, may be accompanied by constructive social services
to prevent or mitigate the effect of these hazards.
It is in this more restricted sense that the term "social security"
is properly used in the United States. Most workers here use it
to mean the program of Federal Old-Age, Survivors and Disability
Insurance (OASDI) which covers more than 9 out of every 10 workers
and their families and is administered nation-wide by the U.S. Social
Security Administration. "Social security" and OASDI have become
synonymous because, for one thing, the U.S. worker contributes directly
from his regular earnings to pay for his protection under this program,
and, for another, its history of nearly a quarter of century uninterrupted
benefit payments and regular improvements to meet changing needs
for protection have brought him to depend on the program as the
basic protection for himself and his family in the event of lost
income because of retirement, death, or invalidity.
"Social security," as used with reference to the Social Security
Act in the United States also encompasses some of what we call "welfare"
or "needs" or "assistance" programs. These are programs of grants
to States for aid and services to needy families with children,
maternal and child welfare, aid to the blind, aid to the permanently
and totally disabled, and medical assistance to the aged. The term
also encompasses programs of unemployment benefits to be administered
by the States, and unemployment benefits for Federal employees and
ex-servicemen. In addition, the term is frequently used in referring
to programs not encompassed by the Social Security Act such as Workmen's
Compensation (Employment Accident Insurance) administered by every
State and at the Federal level for Federal employees, maritime workers
and workers in interstate commerce, as well as programs of temporary
cash sickness benefits in four States.
Now over 100 countries have put into effect programs they call
social security which provide protection against one or more of
the hazards just mentioned. Many of these progress have been in
existence far longer than the one in the United States.
Other Government Programs as Social Welfare
Besides the government programs contained in the Social Security
Act itself and the other Federal and State government programs in
the United States which are properly classified as social security
programs, there are many other government programs in the United
States that fall within the broader field of social welfare. Certainly
veterans' benefits, public health and medical programs, child welfare
services, school lunches, food stamps, surplus food distribution,
slum clearance and public housing should be included.
Education as Social Welfare
In the United States, public education is not usually thought of
as a social welfare activity, probably because it is taken so much
for granted, having existed for 125 years. However, in other countries
where public education is a much more recent development and at
the United Nations it is usually included as falling within the
social welfare field.
Private Efforts as Social Welfare
Besides all the government programs in the field of social welfare,
there are many non-governmental programs. The two most important
kinds of non-governmental welfare programs are those supported by
private philanthropy and those which grow out of the employer-employee
relationship (which are usually referred to as "fringe benefits").
PUBLIC EXPENDITURES FOR SOCIAL WELFARE
Probably the best way to measure the magnitude, character and growth
of public expenditures for social welfare in the United States is
to relate these expenditures to the gross national product. As late
as 1929, the total public expenditures for social welfare, exclusive
of veterans' programs and education, were less than 1 % of the gross
national product. If we include public education, we find that now
the Federal, State and local governments in the United States are
spending about 12% for social welfare.
Effect of Chances in Public Awareness
The belated development of large-scale governmental programs in
the field of social welfare was due to the fact that during the
1920's the American people did not realize that, while life in the
United States had become safer and more prosperous, living had become
less secure. By 1929 the United States was predominantly an urban
and industrialized nation. Free land had not been available for
forty years. The self-sufficient family and community had been largely
superseded by large commercial and industrial enterprises whose
employees were dependent upon their pay-check for a living. The
immediate family and neighborhood had become less adequate for helping
people in trouble.
It was not until the Great Depression of the 1930's that the nation
as a whole became aware of the serious social consequences of the
great economic changes that had taken place. The onset of the depression
had the two-fold effect of increasing the need for public aid and
reducing the gross national product, so that the percentage spent
for social welfare had increased greatly by 1934-5. World War II,
which brought full employment, reduced the need for public aid and
the percentage fell accordingly.
It will be noted that the total public expenditures for social
welfare, increased ten-fold from 1934-35 to 1962-3, in dollar amount,
but only from 9.3% to 11.7% as a percentage of the gross national
product. But there was a great change in the proportion represented
by public aid and the social insurances. The former (which includes
direct relief and work relief) declined from 4.4% to .9%, and the
latter increased from .6% to 4.5%. This was not only because 1934-1935
represented the depth of the Great Depression, but also because
in 1962-3 the social insurance prevented a great amount of destitution
which would otherwise have required public aid.
Comparison of Federal and State Expenditures
A very important characteristic of all these public social welfare
programs, is whether the program is carried on by the Federal government
itself, or by the State and local governments. Many of the programs
are financed jointly by the Federal and State governments.
It will be observed that both in 1934-5 and in 1962-3 the total
expenditures by the Federal government and by the State and local
governments were approximately equal. However, as regards the Federal
government, a large part of the increase between these two dates
was for the social insurances, public health and medical services,
and veterans' programs. As regards the State and local governments,
a large part of the increase was for public education.
If we look at the proportion of the expenditures for each program,
we find that the Federal government now pays 75.9% of the cost of
social insurance instead of 25.8% in 1934-5. The proportion of public
aid paid by the Federal government has declined from 79.2% to 55.8%.
Moreover, the proportion paid by the Federal government now is in
the form of grants to the States and not direct payments to individuals.
As regards public health and medical services, we find that the
Federal government now pays 45.4% of the cost instead of 11.8% in
1934-5. But the proportion of the cost of public education paid
by the State and local governments is still high, namely 92.5%,
as compared with 93.6% in 1934-35.
It will be noted that no expenditures for social insurance are
shown for 1912-13. Actually there were some negligible expenditures.
The United States Employees Compensation Act was passed in 1908
covering work injuries sustained by Federal employees. Nine States
had also passed workmen's compensation laws in 1911, but not all
of them were actually in effect. A number of States and many local
units of government had established retirement systems for their
employees. However, expenditures for all of these forms of social
insurance constituted less than 0.05% of Gross National Product
and are, therefore, not shown.
The public aid expenditures for the periods 1912-13 and 1928-29
were all made by the State and local governments. In 1912-13, these
expenditures consisted almost entirely of the cost of maintaining
"poor houses" and providing assistance in kind for indigents living
outside these poor houses.
By 1928-29 these expenditures also included cash assistance for
certain groups in the population, namely the needy aged, the needy
blind, and dependent children. This assistance was provided under
State laws.
These State laws were usually referred to as "old age pensions,"
"blind pensions," and "mothers' pensions," although the payments
were made only to needy persons. They represented a great advance
in the humane treatment of these groups of needy persons. However,
it is important to note that they differ fundamentally from social
insurance which provides benefits to workers suffering loss of income
from unemployment, disability, or old age retirement without subjecting
them to a means test.
THE SOCIAL SECURITY PROGRAM AS AN ASPECT
OF SOCIAL WELFARE
The most prominent feature of the American social welfare field
is social security, if we exclude public education which, as stated
at the outset, is not regarded as a phase of social welfare in the
United States. Prior to the passage of the Social Security Act in
1935, there was practically no permanent Federal legislation in
the field of social welfare. This was due to two reasons. Basically,
it was because the American people did not feel the need for their
Federal government to engage in social welfare activities. It was
also due to the fact that the United States Supreme Court had interpreted
the Federal Constitution as precluding such activities.
However, the great depression shocked the Nation into a realization
that only the Federal government could cope with this National catastrophe.
One out of every three workers was unemployed. One out of every
five persons had to seek public aid to stay alive.
The Initial Role of the Federal Government
First the Federal government made loans to the States to help cover
the cost of emergency relief. But the Congressional appropriation
for this purpose, made in 1932, was exhausted by March 1933. The
new administration coming into office at that time then embarked
on a nation-wide program of out-right grants to the States for emergency
relief to unemployable persons and a Federal work-relief program
for employable persons.
The Social Security Act of 1935
The new Administration also proceeded to develop a long-range permanent
social welfare program which would eventually supercede the emergency
program. President Roosevelt instructed his advisers to follow two
basic principles in developing this program: 1. Rely to the maximum
extent on the States to administer the program; 2. Rely to the maximum
extent on contributory social insurance for protection against destitution.
By contributory social insurance, the President meant a system
under which contributions and benefits were related to past earnings.
He was familiar with workmen's compensation which possessed this
characteristic. The American workmen' s compensation laws had been
modeled after similar European laws which had been in existence
for many years.
The Social Security Act of 1935 is based upon the two basic principles
laid down by the President. Of ten separate programs included in
the Social Security Act, nine are administered by the States, with
Federal grants to cover a large proportion of the cost. Likewise,
the Social Security Act included two types of contributory social
insurance: old-age retirement insurance and unemployment insurance.
Old-Age Insurance (now Old-Age Survivors
and Disability Insurance)
The old-age retirement system (which subsequently was expanded
to include survivors' benefits and disability benefits) is operated
directly by the Federal government. Under the original program,
only employees in commerce and industry were covered and coverage
was compulsory. In 1950 and subsequent years, coverage was extended
to the non-agricultural self-employed, including most professionals
and to both the self-employed and workers in agriculture.
Benefits under the original program were payable only to workers
at age 65 who retired after 1941. But in 1939, the program was revised
and expanded to provide benefits for wives and children of retired
workers, and for widows, children and dependent parents of deceased
workers. The first benefits became payable to persons who qualified
in January, 1940. A death benefit to help defray the funeral expenses
of the worker was also added. In 1950 benefits were made available
to dependent husbands and widowers of female workers. In 1954, a
disability freeze (similar to a waiver of premium) for the permanently
and totally disabled was instituted and in 1956, cash disability
benefits provisions were added.
Unemployment Insurance
The unemployment insurance system is federal-state in character.
All the States were induced to pass unemployment insurance laws
because the Social Security Act included a Federal Unemployment
Tax on employers' payrolls. If a State passed an unemployment insurance
law, an employer was permitted a credit up to 90% of the Federal
tax for contributions made under the State law. The old-age retirement
system is completely Federal in character because the actuaries
believed that the great movement of workers across State lines made
a State by State system unfeasible.
Public Assistance
The two social insurance systems were intended to provide a first
line of defense against the two causes of destitution which were
recognized as most important at that time. However, it was realized
that it would be many years before a contributory old-age insurance
system could pay sizable benefits based upon past earnings. Therefore,
the Social Security Act also provided for Federal grants to the
States to enable them to pay cash assistance to persons over 65
years of age, based upon their needs. Thirty States and Territories
already had old age assistance laws on their statute books. However,
most of these laws provided for grants to the local units of government
and were permissive in character. The result was that in only 10
States were they in State-wide effect.
Likewise 27 States had laws providing for cash payments to the
needy blind. But most of these laws too provided for grants to the
local units of government and a large number were permissive.
Forty-five States also had on their statute books laws providing
for aid to dependent children, sometimes called "mothers' pensions."
These laws provided for State aid to local government units to help
finance this form of cash assistance based on need. As in the case
of old age and blind assistance, most of these laws were optional
on the part of the local units of government. The result was that
these laws were actually in operation in less than half of the local
units of government in these States.
The Social Security Act provided for Federal grants to the States
for old age assistance, blind assistance and for aid to dependent
children upon condition that a State actually put these laws in
effect throughout the State. Practically all the States soon complied
with this requirement.
Besides the two types of social insurance and the three types of
public assistance, the Social Security Act provided for grants to
the States to expand their public health programs, to expand their
maternal and child welfare programs, and to expand their vocational
rehabilitation programs.
FEDERAL-STATE ADMINISTRATION OF SOCIAL
SECURITY
As has already been mentioned, this great reliance upon the States
to administer the provisions of the Social Security Act was due
to the belief on the part of President Roosevelt, which was shared
by most of his advisers, that this was desirable. It was felt that
a nation-wide social welfare program affecting the daily lives of
millions of people throughout the continent should provide opportunity
for variation in its substantive provisions and in its administration,
subject of course to the basic principles contained in the Federal
law.
President Roosevelt's views had probably been influenced by his
experience as a State Governor and perhaps by his acquaintance with
James Bryce, the former British Ambassador to the United States
and the author of a book entitled The American Commonwealth,
who felt that the great strength of the American
Federal-State system was that the States constituted laboratories
for experimentation. The President's reaction to a radical proposal
of Upton Sinclair, who was a candidate for Governor in California
was typical. Sinclair's proposal was known as EPIC, initials which
stood for End Poverty in California. His comment was, "Perhaps
they'll get EPIC in California. What difference, I ask you, would
that make in Dutchess County, New York, or Lincoln County, Maine?
The beauty of our state-federal system is that the people can experiment."
The Question of Constitutionality
There was also a very important constitutional reason why maximum
reliance should be placed on State action. Under the Federal Constitution,
the Federal government possesses only those powers which are delegated
to it by the states, such as the power to regulate interstate commerce
and to levy taxes. Two Federal child labor laws had been declared
unconstitutional by the Unites States Supreme Court, the first as
not authorized under the interstate commerce clause and the second
as an invalid exercise of the taxing power. Even while the Social
Security Act was being considered by Congress in 1935, a Federal
Railroad Retirement Act was declared unconstitutional as an invalid
exercise of the power to regulate interstate commerce.
Fortunately, when the Social Security Act reached the United States
Supreme Court in 1937, the court adopted a liberal interpretation
of what is known as "the welfare clause" in the Federal Constitution
which reads, "The Congress shall have the power to lay and collect
taxes, duties, imposts and excises, to pay the debts and provide
for the common defense and general welfare of the United Stated."
In a land-mark opinion upholding the constitutionality of the Social
Security Act, Justice Cardozo wrote:
"Congress may spend money in aid of the 'general
welfare.' There have been great statesmen in our history who have
stood for other views. We will not resurrect the contest. It is
now settled by decision. . .
"The purge of the nation-wide calamity that
began in 1929 has taught us many lessons. Not the least is the solidarity
of interests that may once have seemed to be divided. . . Spreading
from state to state, unemployment is an ill not particular but general,
which may be checked, if Congress so determines, by the resources
of the Nation. If this can have been doubtful until now, our ruling
today. . . has set the doubt at rest. . . The hope behind this statute
is to save men and women from the rigors of the poorhouse as well
as from the haunting fear that such a lot awaits them when the Journey's
end is near. . ."
SUBSEQUENT IMPROVEMENTS IN THE SOCIAL
SECURITY ACT
The Social Security has been substantially improved by Congress
on 8 different occasions since 1935. The coverage of the Federal-State
unemployment insurance system has been extended to include 80% of
all employed wage and salary workers. Benefits are now being paid
to 1,500,000 temporarily unemployed workers totaling 200 million
dollars a month. The coverage of the Federal old-age survivors and
disability insurance system has been extended to include 90% of
the entire labor force including the self-employed. Monthly benefits
are now being paid to 19 million totally disabled and retired workers,
and their dependents, and to the widows, orphans, and parents of
deceased workers. These benefits total 1 billion dollars a month.
The public assistance provisions of the Social Security Act have
been improved to include Federal grants to needy disabled persons
who do not qualify for social insurance benefits or whose insurance
benefits are not adequate. The percentage of the cost of this category
and the other categories of public assistance borne by the Federal
government has been greatly increased. The Federal grants to the
States for maternal and child welfare have also been greatly increased,
and Federal grants are now available to the States to provide medical
assistance to the indigent aged.
SECURITY FOR RAILROAD WORKERS
Besides the social Insurances included in the Social Security Act,
there are two other Federal social insurance systems covering railroad
workers. One is the Railroad Retirement Act. As previously stated,
the first such Act, passed in 1934, had been declared unconstitutional
in 1935. However, another one was passed in 1935. This law provided
benefits for permanent total disability as well as old age retirement.
The Railroad Retirement Act and the Old-Age Survivors and Disability
insurance system are coordinated to provide continuing protection
to workers moving into or out of the railroad industry.
There is also a Railroad Unemployment Insurance Act that provides
benefits for temporary disability as well as unemployment. This
Federal system operates separately from the State unemployment insurance
systems.
SECURITY FOR FEDERAL WORKERS
Federal civilian and military personnel in active service have
separate retirement, sickness, and survivors' benefit systems. There
is also a vast Federal program of veterans' benefits providing pensions
and other cash benefits, as well as extensive medical services.
Unemployment insurance benefits are also provided for Federal civilian
and military personnel. These benefits are paid in accordance with
the provisions of the State unemployment insurance in effect where
the applicant files his claim, but the cost is borne by the Federal
government.
ROLE OF THE STATES
As regards State activities in the field of social welfare, these
have grown along with those of the Federal government. As we have
seen, the Federal government helps finance these activities to a
considerable extent. As regards the social insurances, all States
now have workmen's compensation and unemployment insurance laws.
Four of the States also have temporary disability insurance laws.
All of the States have in effect public assistance programs for
the needy aged, the needy blind and dependent children. All except
one have in effect public assistance for needy disabled persons.
About half have in effect a newer public assistance program for
which Federal grants were first made available in 1961. This program
extends the aid to dependent children to include children in need
of aid because of the unemployment of a parent. Previously Federal
grants had been available only if a child was in need of aid because
of the death, disability or desertion of a parent. Of course, the
law in all of the States provides for assistance to needy persons
who do not fall within the categories for which Federal grants are
available; in many cases, these are financed entirely by local funds.
As previously pointed out, State and local government expenditures
for public health and medical care have increased greatly. The Federal
government shares in the cost of most of these expenditures. However,
the States and local government units bear almost all of the coat
of institutional care of the mentally ill.
PUBLIC HEALTH AND MEDICAL CARE
Public health and vocational rehabilitation are no longer included
in the Social Security Act, but are in separate Federal laws. As
has already been mentioned, the increase in the expenditures of
the Federal government for public health and medical care since
1934-35 has been tremendous. Most of the increase in public health
expenditures has been for research. The Federal government now spends
a billion dollars for this purpose which is two-thirds of the cost
of all the health research carried on in this country. However,
there has also been a considerable increase in Federal grants to
the States for public health activities.
Practically all of the increase since 1934-35 in direct Federal
medical care expenditures, is for military personnel and their dependents.
However, beginning in 1946, the Federal government has been making
grants to the States, local units of government, and non-profit
organizations for the construction of hospital and other medical
facilities. These grants have increased year by year and now total
a half-billion dollars a year. Moreover, medical care expenditures
by the Federal government under "Veterans Programs" have increased
during this period from $59 million to more than $1 billion.
FEATURES NOT INCLUDED IN PUBLIC SOCIAL
WELFARE IN THE UNITED STATES
Health Insurance
It should be noted that in the United States there is no public
health insurance system or general health service, as there are
in two-thirds of the nations having a social security program. Of
course, medical care, as well as cash benefits, is provided under
workmen's compensation laws in the case of work-injuries. In addition,
indigents, members of the armed forces and their dependents, and
veterans are provided medical care at public expense. All told,
if we also include medical research, about one-fourth of the nation's
medical bill is paid for out of public funds. Another fourth is
covered by private insurance.
Maternity Benefits
Although there is no general program of maternity benefits in the
United States, millions of women are eligible for maternity benefits
through health and insurance programs provided under voluntary plans
or, in some cases, through legislative action. These benefits take
the form of cash payments to meet part or all of the expense of
obstetrical care; or they may provide medical and hospital services.
For women workers they may also include maternity leave provisions
and cash payments to compensate in part for loss of wages during
disability.
Federal legislation provides benefits for women railroad workers,
women federal employees, women in military service, and wives of
servicemen. Federal, State, and local laws provide assistance for
women who are "medically needy." But the trend in the United Sautes
is toward voluntary protection, and this is provided for under informal
employer policies, through collective bargaining agreements, or
through private subscription to commercial insurance plans.
Family Allowances
Another feature which is not included in the social welfare program
of the United States is what is called family or children's allowances.
About half of all the nations of the world have such a program.
Probably the chief reason that the United States does not is that
the general high level of wages in this country does not create
the same need for supplementation for workers with families. In
any event, employers in this country have never proposed family
allowances in lieu of a general wage increase as has been true in
a number of other countries. Nor has organized labor ever shown
any interest whatsoever in family allowances, either as a result
of collective bargaining or as a result of legislation.
Another reason that there has been no interest in family allowances
is that an aid to dependent children program has developed in this
country to a far greater extent than anywhere else, although it
is true that it does not apply to the normal family where the breadwinner
is working.
COMPARISON OF GOVERNMENT AND PRIVATE EFFORTS
IN SOCIAL WELFARE
There can be no question that in the United States governmental
programs in the field of social welfare are more important than
non-governmental programs in term of expenditures and individuals
affected. However, it would be a mistake not to recognize the vital
role of non-governmental social agencies.
Philanthropies
Throughout our history, religious organizations have engaged in
philanthropic activities such as providing assistance to the needy
and caring for dependent and neglected children. Secular philanthropic
organizations came into existence early in the 19th century, and
in the 1870's, charity organization societies were established in
the larger cities to deal more effectively with social needs arising
out of increasing urbanization.
In 1929, at the outset of the Great Depression, it was hoped that
the private welfare agencies would be able to meet the needs of
the increasing number of unemployed workers. This proved not to
be the case. Soon the States and then the Federal government was
obliged to provide funds to assist local public relief agencies.
As the local, State and Federal governments assumed responsibility
for providing cash assistance to indigent persons, the non-governmental
welfare agencies devoted most of their efforts to providing health
and welfare services (rather than cash assistance) for individuals
and families. These services are not limited to the indigent. They
include institutional care, hospital nursing services, recreational
activities, family counselling and other types of services. The
total expenditures of three non-governmental agencies for health
and welfare activities have steadily increased in amount and as
a percentage of the gross national product. They now aggregate about
two and a half billion dollars, and constitute a valuable supplement
to governmental welfare activities.
Employment Fringe Benefits
Beside philanthropy, another valuable supplement to governmental
welfare activities are the health and welfare plans based on the
employer-employee relationship. These are usually referred to as
"fringe benefits" in the United States. They include life insurance,
health insurance. disability benefits, sick-leave, supplemental
unemployment benefits, and retirement benefits. Prior to 1935, the
number of employee benefit plans was very small, about 1,000 covering
2,600,000 workers (exclusive of those covered by life insurance
policies). By 1962, 43 million employees or 71% of all employees
in the country, plus 68 million dependents were covered under such
plans. The benefits paid in 1962 amounted to $9,769,000,000. There
are a number of reasons accounting for this dramatic growth. The
Social Security Act of 1935 facilitated the establishment of private
pension plans on a sound actuarial basis. High corporation taxes
coupled with allowance of explorer contributions as a deduction
permitted the establishment at a low net cost. The "wag-freeze"
during World War II and the Korean War, which permitted increased
compensation in the form of "fringe benefits" and labor union demands
for "fringe benefits," were other reasons.
Employers pay about half of the cost of health and welfare benefits,
exclusive of retirement benefits. They pay about 85% of the cost
of retirement benefits.
CONCLUSIONS
It is apparent from the foregoing discussion that the development
of social welfare programs in the United States has encompassed
both governmental and non-governmental efforts. In so doing, it
has been demonstrated that there need be no conflict between the
two. Voluntary welfare organizations recognize that the assumption
by government of the obligation to provide financial aid to indigent
people has enabled them to use their resources more effectively
in providing constructive social services. Likewise, the large life
insurance companies have used successfully the basic protection
afforded by the Old-Age, Survivors and Disability Insurance system
to promote the sale of additional protection.
It is also apparent that this development has come about as the
result of felt needs--on a pragmatic basis rather than on an ideological
basis. However, it would be unfortunate if we did not recognize
that it constitutes an expression of the paramount objective of
democratic government--the welfare of people. While judges debated
for 150 years as to the respective role of the Federal and State
governments in achieving this objective, it is well to recall that
the very first sentence of the Federal Constitution reads as follows:
"We the People of the United States in order to form a more perfect
Union, establish Justice, insure domestic Tranquillity, provide
for the common defense, promote the general welfare, and
secure the Blessings of Liberty to ourselves and our Posterity,
do ordain and establish this CONSTITUTION for the United States
of America."
The underlined words indicate that the founding fathers recognized
that a democracy had an affirmative obligation to promote both the
liberty and the welfare of the people. Thus, their concept of liberty
was a positive one of equal opportunity for all which can only be
achieved through promoting the general welfare.
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