The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-18

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Soao4ou xUo ent sections of
each state should be free to enact
its own unemployment insurance
law. But no state should be at
liberty to neglect this problem, or
to put more progressive common
wealth at a competitive disadvant-
age. For this reason, the bill pro-
poses a 3 per cent Federal tax upon
pay rolls, TO be RENTED to employ
ers in so far as they contribute to
unemployment insurance funds
under state law
AS an added incentive, a Federal
subsidy, aggregating 100000 for
the fiscal year ending June 80, 1896,
and $5O,0OO,000 for each succeeding
year, is provided for ALLEGATION
among the states to aid them in adj
ministering such unemployment in
surance laws as they may enact.
Explains Proposed Systems
Old age, unlike unemployment, is
natural phenomenon that de-
sends upon mankind everywhere
with unfailing regularity. There
fore the bill treats this problem
primarily on a national basis. 1t
sets up a Federal system of COM
pulsory old age insurance, to which
both employer and employee con-
tribute, and which will provide at
least the minimum requirements
for health and decency to every
worker who has reached IS years OF
age.
At the same time, the measure is
careful to make special provisions
for workers who are now so near
the retirement age that they will
have no chance to insure them
selves by their own contributions.
In addition, a Federal subsidy of
$50,O00,000 for the year ending June
80, 1886, and $125, 100000 for each
succeeding year, is provided to help
the states care for the aged who
can not be brought under the COM
pulsory national plan. Finally, pro-
visions are made for the establish
ment of a voluntary system of old
age annuities, administered by the
national Government.
These proposals are built upon
the Gibraltar of business common
sense. Unemployment insurance is
cheaper than relief because pre-
paredness is superior to painless
ness.
Attention Should Aid Remedy
The focus of attention upon the
scientific treatment of unemplOy-
ment should diminish that evil just
as life insurance has heightened the
span of the average life. And in an
age where the displacement of men
by machines has become an ever
present chronological threat, it is
certainly desirable to substitute in
stead the displacement of the elder
" worker who is entitled to a rest
by the younger and stronger and
who is entitled TO job.
There is not single dictate OF
business judgment that has been
neglected in framing this legisla-
ton. In order not to burden in
dustry during its battle for COM
plete recovery, the unemployment
Insurance tax of per cent will not
become fully operative during the
next two years unless the index Of
productive activity reaches 81 per
cent of the 1923-1925 level.
The old-age pension tax begins
with l per cent Of pay rolls in 1897
and scales up gradually to per
cent in 1857 The Federal appro-
priations under the bill are similar
ly graded.
Important Human Problem
However, the quest for economic
security does not rest upon the
promptings of economic judgment
alone. 1t is a transcendently i'm
portant human problem. There is
no reason why the worker unem-
ployed through no fault of his own
should be more neglected than
machinery that is idle during the
slack season.
There is 40 justification for giving
the man who has grown old and
tired in the performance of his life
work less consideration than re-
tired race horse. The day has
passed when the wealthiest nation
in the world can remain the most
delinquent in its treatment of the
most pressing CT all social questions
The proposed legislation is not
confined to old-age pensions ane
unemployment insurance. Federal
subsidies of over S40,000,000 year
are provided to help the states in
caring for dependent children, in
promoting maternal and child well
fare, in aiding the crippled, and IN
advancing public health. While
most of this money is to be al
located among the states on dol
lar-for- dollar matching basis, there
is enough fiexibility to safeguard
the poorer localities which are un-
able to help themselves.
Preparing for Future
If one contrasts the economic Sc
curity bill with TIE public apathy
toward the unfortunate that pre-
dominated & few years ago, he flndl
it hard to realize that he Is still
living in the same world. OF course
the hill ineS not represent inE