An Analysis of the Extent to Which Arguments Used Against the Social Security Act of 1935 Have Been Vindicated and Repeated

251 Pages·14.719 MB·English

by  Benson, Winston Willard

AH ANALYSIS OF THE EXTENT TO WHICH ARGUMENTS USED AGAINST
THE SOCIAL SECURITY ACT OF 1935 HAVE BEEN VINDICATED AND
REPEATED
Wins ton W»r Sanson,
A dissertation submitted in partial fulfillment of tit©
requirements for the degree of Doctor of Phil­
osophy# in the Department of Political
Science in the Graduate College
of the State University
of Iowa
June 1951
ProQuest Number: 10907217
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ACKNOWLEDGMENT
The writer wishes to acknowledge
his gratitude to Dr, J&ek T* Johnson and
the other members of his committe© for their
valuable criticisms, suggestions, and direc­
tion in connection with the completion of
this study*
Acknowledgment is also due to the
writer*s wife, Jean, who was of great assis­
tance in preparing the manuscript*
J
)
Foreword
In the present study of social security legis­
lation# the writer1s purpose consists of the following?
1. To determine what main arguments were expounded
on the floors of the House of Representatives and
the Senate in opposition to social security meas­
ures*
2* To ascertain the continuity of these arguments as
expressed on the floors of Congress regarding the
Social Security Act and amendments to it in en­
suing years*
3* To endeavor to validate or Invalidate some of these
arguments by recourse to ensuing events# pertinent
statistics# and Mexpertn opinion*
Ij.* To suggest the probable virility of some of these
arguments In future social security legislation*
No attempt is mad© to include all arguments in
opposition or to endeavor a complete validation of these
arguments* That would he a task far beyond the present
facilities of this writer* Nor is the intont that of
citing criticisms of social noeurlty expressed outside the
House and Senate chambers* The main idea Is to discover
III
the extent of continuity In the opposition to the Social
Security Act and its subsequent revisions as expressed in
Congress* The magnitude of those arguments and the source
of Congressional opinion will be included only incidentally*
iv
TABLE OF CONTENTS
Chapter page
I Background of Social Security in the
United States . . . . . . .......... • . ♦ 1
XI Criticisms Levied on the Basis of
Constitutionality • ........ 11
Deprivation of State Sovereignty * • » 12
Coercion of States . . . . . . . . . . 20
Alleged Illegality of the Taxation
Provisions 2k
lit Uniformity of State Participation . . . . . 33
Delay in Operation .......... .. . . 34
Failure of States to Utilise Maximum
Benefits 36
Financial Inability of States
to Conform . . . . . . . . . . . 39
Federal Government
Participation . . . ............ 49
Present-Day Validity of Alleged
Inability to Conform 54
Variations in State Unemployment
Compensation Laws . . . . . . . . . . 64
Conclusions 72
IV Limitations of Coverage . . . . . . . . . . 74
Coverage of Old Age Assistance . . . . ?4
Coverage of Old Ago and
Survivors Insurance. . . . . . . . . . 77
Validity of Views on Coverage . . . . 87
V Adequacy of Benefits. . . . . . . . . . . . 100
Old Age Assistance . . . . . . . . . . 101
Old Age and Survivors Insurance . * . 105
Initiative and Thrift . . . . . . . . 113
v
TABLE OF CONTENTS (continued)
Chapter page
VI Effect of Cost on Government • » • • • « « 119
VII Attitude of Business 1J4O
VIII Attitude of L a b o r .............. * * * # 4 l6l
IX Administrative and Political
Considerations . . . . . . . . . . . . . . 175
Administrative Considerations . . * . 175
Political Considerations . . . . . . . I09
X Implications of th© Trends • • * » » » • • 202
Acceptance of th© Principle of
Social Security. . . . . . . . . . . . 202
Political Party Reaction 20k
Centralisation of Control. . . . . . . 2Qo
Economic Instability ............ . 210
Conclusions . . . . . . . . . . . . . 212
Footnotes . . . . . . . . . . . . . . . . . 21I4.
Bibliography . . . . . . . . . . . . . . . 237
vi
ta b le o f ta b le s
T eibl© page
1 Ola.-Age Afteletanoes Recipients and Average
Monthly Payments, 1936-49 • •• ••».**.»*«»» 56
II Nuataer of states with Average Old-Age
Assistance Payments In Specified Interval,
1940-50 ........... 58
111 old-Ag© Assistance; Rate per thousand
Recipients, Average Payments In 1948 and
1930, and Per Capita Income of State© in
1948 ...... 59
IV Benefit Amount and Time: Unemployment
Compensation ...... 6?
V Aged Beneficiaries of Old-Age and
Survivors Insurance Per Thousand Aged
Population, tay States, Hanked According to
Percentage of their Total Population on
Farm© in 1940 96
vii
1
Chapter I
BAGKUHOUIfD OF SOCIAL SECUBITY IH fSS UNITED STATES
Determination of the relative priority of In­
dividual economic security as contrasted with individual
political security constitute© on© of the basic world
problems of today# This issue of th© precedence of eco­
nomic security versus the precedence of political security
presents a dilemma to all th© governments of the world.
These governments are grappling gamely with this problem
but*' as yet* to no conclusive decision# Directional trends*
however* are obvious# Th© Communist part of the world seems
quit© definitely to have placed economic security first and
political security second. The story In th© so-called
"Western World” is somewhat different# Th© priority assigned
Is not quit© so clear* There Is a more concentrated and
sustained effort to attain economic security but at th©
same time to retain political security# Thor© seems to be
little doubt as to the great desirability of this# Th©
satisfaction of the people and th© maintenance of democracy
appear to depend upon it#
How can it be done? A partial solution seems to
rest in some typ© of social security program* Such a
solution has been sought in the United States* Apparently
th© purpose In the United States has been to retain and
2
even expand th© political freedomg While at th© same time
blunting the effects of economic Insecurity through a social
security program:*
It was In the early 1930*s in the United States
that this problem of priorities was forced upon the American
people by a ruinous depression. People began to ask them­
selves what political security meant without th© accompaniment
of economic security* Months of unemployment and millions
of mouths unfed reinforced the realisation that political
freedoms were completely inane without economic security*
Obviously, most of the economic unfortunates were the
victims of Industrial blight rather than individual
delinquency. A society that had deprived them of social and
economic security must certainly prevent a recurrence of the
same type of catastrophe If it valued tlx© worth of the
Individual hlf^kly.
How could such catastrophes be prevented from
recurring? What level of social and economic security could
b© provided while maintaining traditional political liberties?
These and countless other questions plagued Congress In an
ever-Increasing barrage In th© early 1930*s. Something had
to b© done, not only to provide immediate relief but also to
provide long-range economic security* It was done. Th©
Social Security Act was passed in 1935-