Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-09-26
insecurity Being
Built Against
Old Age Pension to Grow
Into Insurance plan for
Protection of All Who
Reach Age of IS.
Unemployment Compensa-
ton, No Cure-all, Aims at
Cushioning the Bumps of
Economic Difficulties.
By LEFT H. GILSTAD
in Minneapolis Journal.

III VullLCdpoLAc JUL llSlls
The American social and economic
structure is undergoing a major
law goes into effect. 1t became law
last week. There is established the
philosophy that men and women who
lose out in life's struggle because jobs
fail or because age cuts off their
chances shall be provided for
This thing has been submerged by
spectacular displays over taxes and
utilities and farm programs and
whatnot. But in the years to come,
it seems reasonable to believe. this
plan for providing that all-important
security which man needs to make
life attractive will rate as one of the
great steps of the era
Plan Is Not A Cure.AH.
To begin with. it must be understood
that this social security plan is not
a cure-alL 1t is not a very generous
provider when laid beside some of
the elaborate schemes that have been
the subjects of crusades. 1t will not
solve unemployment problems and
questions of dire need when a tragic
depression rolls over the country.
And. it is an expensive program-ex-
pensive from the point of view of
assessments on industry and On work.
ers.
Take first the old age pension sec
ton of the big program: first because
it comes first in the act. first because
old age pensions have become a ma
jor theme song. This doesn't look
much like the Townsend scheme of
generous payments for all aged; it is
a mere shadow of that proposal
There are two phases of this old
age pension business. First, the i'm
mediate effort to come to the aid Of
several hundred thousand men and
women past the age of 65 who are
in need: many of them on relief. few
of them capable of getting or holding
a job. AS to this phase, it is a state
program-each state is expected to
care for its aged. but the federal gov
eminent offers its financial help and
moral suasion to make it possible.
Thirty Dollars A Month.
month for every person eligible to
receive an old age pension, if the
state and local government will do
the same. thus assuring about $50
month for those who qualify.
Thirty-six states have set up their
own systems and the rest presum-
ably will fall in line. Minnesota has
momentary tangle over its ma
chinery. but a tangle which should
readily be Strengthened out. either
by court decision or by legislative act.
Eigibles must have lived in the
state during five of the last nine
years. and during all of the year be-
fore making application. They are
expected to be American citizens, and
in Minnesota as in other law, there
are other limitations they are sup
posed to be in need and without re-
sponsible relatives able to care for
them, but they may have and keep
home of their own
Applications will be handled as
ever through the county boards. IN
der regulations laid down by the state
board Of control when the state law
is Strengthened out).
It's Really Insurance.
That is the immediate phase-a
phase that may run through the life
time of a great mass of those entitled
to pensions. But growing up along
side it will be another phase, a long
range plan by which. ultim ately. vir-
tually every person who reaches the
age of sixty-f1ve will find himself
drawing a pension and will discover
that this new philosophy calls for his
retirement from work.
This will actually be an insurance
scheme. whereby every man and
woman. from the moment he becomes
a wage Garner. will be putting away
out OF his wages part of his earnings
against that day when age inferferes
with work and WEAKNESS stirs a de-
sire to relax and turn over the work
of life to the younger generation.
But it will be more than just an en-
forced insurance plan, because every
mans boss will be contributing. The
joint jackpot which employer and en-
ployee will raise from the moment
OF youthful employment until retire
mene will be creating a fund out Of
which age VIII be cared for.
This phase starts in 1887. when
every employee IN private employ
menf Will find one per cent Of his
wages deducted Three yearz later