Evening star., 1934-09-02
SOCIAL INSURANCE NEXT
ON NEW DEAL PROGRAM
Presidents Promise for Broad Legisla-
ton Expected to Cause Hot Dis
cussiOn i'm Next Months.


spread criticism as in the years Just
past. The hard consequences to COM
mon folk Of the present depression
have led to the demand that RESPONSE
bility for at least a national minimum
be accepted by industry. The littls
game Of proflt-seeking can be played
above this. But gambling with the
lives and futures Of human beings
viii certainly be closed to SPECTATORS
before long.
Shall 1t be done by requiring In
dustry to guarantee employment OF
shall 1t be done by requiring contri.
buttons to fund which may be dis.
bursed to those thrown out Of EN-.
ployment for some reason? Shall
the individual himself be required ID
make contributions Ought the Gov.
ernment to make contribution also?
These are some Of the questions which
will need the most intensive consid-
Grafton. theoretically I cannot see
that it makes any difference what
ever. It Is productive activities which
create national income and with.
drawals from It or additions to It are
about the same whoever happens tc
be the agent. It may be a good thing
for other reasons to require both en-
ployers and workers to participate:
but it certainly would be simpler to
have the Government collect Is as
general taxes.
Extent More Important.
This general series of questions Is
not so important to settle as some
others having to do with the extent Of
the protection to be afforded. Theo-
retically, again, the Nation is richer
Tor each individual added to It. Each
OF us works and produces more goods
ana services than he consumes. He
therefore produces q surplus. con-
tributes to progress. This again. how
ever, is an ideal view. As things are
arranged good many Of us are not
allowed TO make any contribution at
all, but are kept idle; and a good
many more spend their time nullifyinR
the efforts Of others in competition
or In performing useless or wasteful
tasks.
Shall we extend equal protection To
all, regardless of contribution? n so.
what proportion shall 1t represent Of
the average national income? II the
minimum is put at any certain level
tnere VIII always be those who can
get more as unemployed than they
can as employed. Only those viii
work, presumably, who can add ap-
preciably to their incomes above this
level. But perhaps this was always
true and this Is just q more orderly
procedure.
The quantitative question has its in
terest for those who are anxious about
tnelr freedom to manage industry as
tney please. 1t may make labor more
Independent. 1t may take away A
certain percentage Of those funds with
which they have been accustomed to
make forward ventures.
To be sure labor ought 10 be more
contented, and what forward ventures
are made ought to be more certain;
but 1t Is doubtful If these last will be
viewed as Compensations. There may
be some bitter struggles over these
questions before the Presidents bill
has been written into law.
Other countries, in their own wav
and degree, have met these problems
and settled them for themselves. II
we have as much sense as we ought
TO have, We shall learn q great deal
from the experience Of others. For
our purpose here it is enough to say,
should think, that no nation which
has undertaken system of social in
Surance has given 1t up. It becomes
an indispensable part Of the social
fabric Immediately.
F.E. r.. A. q Makeshift.
President Roosevelt did not wait for
such q law in the first instance, He
was confronted by an emergency and
he met 1t. The Federal Emergency
Relief Administration has operated as
makeshift insurance scheme and
done it so well that there are those
who prefer It to more elaborate and
less flexible system. The trouble has
been that there never existed contrac-
tual relationships between the relief
organization and the recipient. Relief
Is always given as something less than
right. But the organization has
served as useful bridge to something
permanent.
Similarly, the benefit payments
made under the agricultural adjust
ment act have served as an insurance
against one Of the worst risks:
Drought and consequent crop failure.
Even those farmers who have no crop
to sell get their benefit payments.
They receive 1t as q right, in return
for contract made with the Govern
ment. They prefer 1t TO outright sup
port by the relief organization.
have referred to only few Of the
problems that the technical commit
tees win have to consider during the
coming months. I have also, however,
tried to make it clear that this COM
mitment Is not something unexpected
and strange. The F. z. r. A. has been
giving relief Of an emergency sort,
and so has the A. A. A. A social in
surance bill viii be merely another
step in regularizing the relationship
between government and citizens. But
further than this it Is rooted in the
good-neighbor philosophy of our rural
past. 1t repudiates the horse-trading
side Of that life; 1t accepts the kind
lier tradition Of sucI,or for the needy
and q sheltering hand for the weak.
Revolt Ruled as Legal