Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-23
The Dole in England
of 5000, 900 in Fund by
April Estimated.

English wages are still twice those OF
any other country in Europe. They are
half the scale IN the United States. In
the beginning this fact contributed to
the unemployment. They were not
adapted to meet the European fall In
prices. thus enabling manufacturers to
keep in competition. The hostility oil
the trades unions to lower scales was
infllexible and the general public opin-
ion agreed with them. There was un-
doubtedly conviction that high wages
with some unemployment was better
for all than lower wages with sbsorp-
ton of the unemployment. At time
when unemployment did not exceed a
a million there was therefore no part1c-
ular worry about its growth under the
earlier plan of unemployment insur-
ance
While the so-called insurance system
began In 1912. it did not function on
large scale until after the war. Orig
inally it was genuine insurance. having
a strict relationship between the pre-
miums paid by the workers (then ID
pence per week EACH and the employ
ets a slightly larger sum for each per-
son employed, and similar one-thlro
by the State), and the indemnity re-
ceived by the unemployed. The limits
were prudently fixed and the benen-
Charles we're entitled to petty sums when
compared to their normal wages; at the
end of Is weeks of unemployment
all benefits from the insurance FUND
ceased automatically. Under this sys-
tenn the fund took care Of itself and &C
cumulated surplus.
Dole Gets Into Politics.
After the armistice, especially in 1920.
England was overwhelmed by Virulent
economic crisis. At once government
employment insurance was extended TO
include all workers except domestic
servants and agricultural laborerS. Inc
most constantly reiterated statement by
Englishmen Is that this action avoided
revolution.
An effort was still made to maintain
the original principles of unemployment
insurance. Little by little the irreSisti-
BILE pressure of circumstances brought
about an entirely different conception.
In 1921 a special allowance for depend
ents was added and the share borne by
the government treasury increased. In
1924 the is weeks time limit for
receiving weekly benefits was abolished
by the Labor government then In
power. From then on aid was given
automatically as long as the worker
was without employment. Naturally,
after this extension there was no hope
of a financial balance in the fund. The
dole got into politics. All safeguards
were whitfield down by the persistency
of the demagogues who adopted, for
political effect, a sympathetic attitude
toward dole beneficiarieS.
Originally in order to receive the dole
the worker had to prove that he had
been genuinely seeking work. but I'M
able to obtain suitable employment" In
1880 another amendment was passed
by the Labor government disqualifying
the worker only IL he had refused
without good cause suitable employ
ment offered him by labor exchange. -
He no longer was expected to look for
work himself. The Interpretation OF
the, term suitable employment" is SO
broad that a worker without being dis
qualified can refuse any post, even
though he has the ability for 1t, If he
thinks he has been offered less than the
regular rate. or If the job has been
available by strike. II it pleases him
not been definitely trained.
transitional" Glass Created.
One other important safeguard had
remained, namely, the UNEMPLOYED to
be eligible to the dole must have paid
minimum of 80 contributors of z
pence, IA cents in our money, .lto the
fund during two years But unemploy-
ment had become a tradition by this
time. A new generation had come
along which had not paid into the fund
the 80 contributions. The government,
to take care of this class, created a new
rule under rather beautiful word
transitional" unemployment. If you
are transitional" you can get in by
having paid in two years a minimum
of eight contributions of pence each.
After you become transitional you
are entitled to all the benefits of those
who have been contributors for Is years.
Thus the system has lost all its actu-
arial basis. 1t is no longer insurance.
It is true that the workers still give up
their small weekly contributions, and
the employers still maintain their fixed
head tax for every worker in their en-
ployment, but there is no real relation
ship between what is paid into the fund
and what Is paid out. The result is that
a deficit now considerably more than
five million dollars a week is being Gre
ated in the fund and for this deficit the
government becomes responsible. It is
estimated that the deficit by April will
be over six hundred million dollars.