IN THE PRECEDING chapters expenditures made during the depression for social security and for relief were described, and the extent of the compromise between need and ability principles in the various security programs was noted. If the reasoning in the last three chapters has been valid, it is probable that the Federal Government was not under economic compulsion to emphasize so strongly the ability principle in the form of program adopted or in the limitation of financial support. Assuming, therefore, that a compromise which places greater stress on the need principle is both possible and desirable, the following tentative program is presented.
The first major problem which confronts us in the establishment of a program of security finance concerns the size of the expenditure. As has been demonstrated, the amount spent depends upon the nature of the compromise made between capitalistic and socialistic principles. We have discovered, however, that the United States possesses an unused tax capacity which can be devoted to security expenditures and that one-and-a-half to two billion dollars more could be disbursed annually without unduly disturbing the economic system. Such increases would allow more than a 50 percent increase over the average outlays made in 1933-35. At least there