cident insurance. Sec. 6.
Development of compensation for accidents. Sec. 7. The compensation plan
in America. Sec. 8. Standards for a compensation law. Sec. 9. Historical
roots of sick-insurance. Sec. 10. Need of sick-insurance in America.
Sec. 11. Old-age and invalidity pensions. Sec. 12. Unemployment insurance.
Sec. 13. Need of ideals in social insurance. Sec. 14. Insurance rather than
penalty. Sec. 15. The compulsory principle. Sec. 16. State insurance and
a unified system. Sec. 17. The contributory principle.

Sec. 1. #Purpose and meaning of social insurance.# In importance
surpassing at present any one of the various measures on behalf of
the wage-earning class that have thus far been considered is the
remarkable development now under way of plans and agencies to provide
insurance for "the common man." Insurance means making some kind
of provision out of present means, so as to reduce the injury and
suffering that would result from a future mishap. Usually, likewise,
it implies uniting with others to distribute the expense fairly over
all in the group. Social insurance is the term most frequently applied
to the various institutions and plans provided, more or less under
the regulation of law, for the protection of the lower-paid workers in
most modern countries. The terms industrial insurance and workingmen's
insurance are likewise used. The principal types of events for which
social insurance in its various branches provides, are (1) accident,
(2) sickness, (3) incapacitation (either by old age or by invalidity,
that is, permanent failure of health within the normal working years),
(4) death (generally called "life" or "survivor" insurance), and (5)
unemployment.

The direct aim of social insurance is not to prevent these mishaps
(tho that may be an indirect result), but it is to provide some
financial indemnity for the economic loss and expense involved in the
mishap. The principal kinds of losses are two. First, that occasioned
directly in caring for the sick or injured person, the expense of
medical attention, nursing, hospital care, drugs and special apparatus
such as crutches and glasses, and burial expenses. The second is the
loss of income because of inability to work as a result of injury,
of illness, or of permanent disability, or (in the case of life
insurance) of the death of the bread-winner, or of want of employment.

Sec. 2. #Increasing need of social insurance.# In various connect