Evening star., 1932-09-09
Unemployment Insurance.


In their Labor day speeches both
President William Green and Secre-
tary Frank Morrison outlined as one
OF the major objectives Of the Ameri-
can Federation of Labor the adoption
on q Nation wide scale of compulsory
unemployment insurance, this to be
achieved through action by the States
of which only wisconsin has so far
enacted any egislation-rather than
through act of Congress.
The selection of this objective is
significant. not only as it affects the
chances for more rapid development
OF what many believe to be an in
evitable national policy, but as de-
noting the changing attitude of or
ganized labor itself toward the prin-
eiple of unemployment insurance.
Last year, at the federation's annua!
convention in Vancouver, Mr.. Green
warned that we can't have unemploy-
ment insurance without agreeing to a
set-up that will, to a large degree,
govern and control our activities" and
while that does not cover everything
that Mr.. Green said, it indicates the
root OF the traditional suspicion with
which organized labor has in the past
viewed social or unemployment insur-
ance In 1916 the Federation of Labor,
meeting in Washington, referred TO
resolutions and bills pending in various
Legislatures as the persistent agitation
in favor of compulsory social insurance"
originating with "an organization that
is neither responsible to the wage
earners nor representative of their
desires" and that "the measures them
selves and the people who present them
represent that class OF society that is
very desirous Of doing things for the
workers and establishing institutions
for them that will prevent their doing
things for themselves and maintaining
their own institutions"
Unemployment insurance, voluntary
In this country and compulsory abroad,
has grown in public estimation since
1916. There may be as much difference
of opinion as ever over the feasibility
of the various plans, of which there
are many, but today there is almost
universal acceptance of the principle
that unemployment insurance seeks to
apply, that principle being recognition
by society OF its duty to safeguard the
man who, through no fault Of his own,
Is thrown out Of work, against the
suffering of destitution and want.
The manner of making the principle
effective is something else again. The
issue is whether its adoption should
be left to voluntary action Of employers
or forced by legislation.
The Senate's Select Committee on
Unemployment Insurance, which in
vestigated the subject last Winter, con-
cluded that:
The ideal solution, to our minds,
would be the establishment Of reserves
by private industries in conjunction
with their employees, each plant en-
ployer taking care of his own employees,
at the same time fostering and en-
couraging the maintenance of thos5
systems of unemployment benefits
which the workers themselves have
maintained for many years.
But the ideal has been slow Of reali-
1ation. President Green and Mr.. Nor
rison point to its slow realization as
the factor that has led them to seek
compulsion through legislation. They
agree with the Senate committees con-
clusion that ultimately. at least, the
States should formulate some program.
Senator Wagner, the leading advo'
cate in Congress of unemployment in.
surance, takes the view that Ito ad-
vocate insurance with sincerity is Il
advocate compulsory insurance" Fol
while legislation on unemployment in
surance does not necessarily mean as
sumption by the State of financial con-
tributions to unemployment funds, i
does remove the competitive handicap
under which volunteer insurers in in
dustry have been forced TO work. Tht
aim of compulsory insurance would b
not only obligation. but statutory recog
milton of the cost of insurance as ;
part Of industrial operating expense
The Senate Committee would recognize
this through national legislation per
mitting deduction Of portion of fund
laid aside as unemployment insurance
from gross income for tax purposes
Senator Wagner would go step turthe
by permitting deduction of 30 per cen
of unemployment reserves, not from
gross income, but from tax. He woult
also extend Federal aid to the State
which contribute to unemployment re
serves and set up federally integratet
system of State-operated employment
Offices
However desirous may be the prin
ciple of unemployment insurance, ther
Is certain analogy between the presen
movement and the decision CT yer
sick man ito take out some insurance.
He faces, in this decision. obvious diff
culties. But sometimes it requires sc
we're illness and death-bed scenes t
drive home the necessity for the sort c
protection that insurance implies.