Evening star., 1936-09-27
NJ the A ciated Press,

economic security-economic Sc
curity for the men and women
obliged to earn their daily bread
through their own daily labor.
There is no question that it Is OF
deep concern to us all. Even in
good times there is ever present
In the minds of workers the fear
Of unemployment. In periods OF
deep depression, there is the fear
OF protracted idleness. And al
ways, in prosperity and in depres-
sion, there is the ever present dread
Of a penniless old age.
From the standpoint Of the in
dividual, I know of no more in
tensely human problem than that
Of economic security. From the
standpoint of the Government
there is no problem calling more
for a sympathetic understanding
and the best efforts of heart and
mind. But to solve the problem we
must have more than a warm
heart and generous impulse. We
must have the capacity and the
determination to translate our feel
ings into a practical, workable pro-
gram. Day-dreams do not pay
pensions.
Now in broad terms there are
two ways to approach the develop
ment Of program of economic Sc
curtty. One is to assume that hu-
man beings are improvident-that
1t Is necessary to have the stern
management of a paternal gov
eminent to force them to provide
for themselves-that it is proper
for the Government to force them
to save for their old age. The
other approach Is to recognize that
In an industrial nation some peo-
pie are unable to provide for their
old age-that 1t is a responsibility
Of society to take care of them.
The act passed by the present
administration is based upon the
first of these approaches. 1t as
sumes that Americans are ire.
sponsible. 1t assumes that old
age pensions are necessary because
Americans lack the foresight to
provide for their old age. I re-
fuse to accept any such judgment
Of my fellow citizens.
Old-Age Pensions
Matter Of Judgment.
believe that as q nation. we
can afford old-age pensions-that
IN a highly industrialized country
they are necessary. I believe in
them as a matter of social justice.
Because of my firm belief in the
Justice. necessity and feasibility of
old-age pensions. I am going to
discuss the present act with the
utmost frankness. 1t is a glaring
example Of the bungling and waste
that have characterized this ad-
ministration's attempts to fulfill
its benevolent purposes. 1t en-
dangers the whole cause of social
security in this country. In my own
tudgment-and I have examined
1t most carefully-this law Is un-
just. unworkable. stupidity drafted
and wastefully financed.
Broadly speaking, the act is di-
vided into three main sections. One
deals with compulsory old age in
surance. 1t applies to about one.
half of our working population. It
excludes, among others, farmers
and farm laborers, and domestic
servants.
Another part Of the act attempts
10 force States to adopt unemploy-
ment insurance systems.
The third part of the act pro-
vides old age pensions for those
IN need who do not come under the
compulsory plan.
Now let us look at the so-called
old age insurance plan in more de-
tail, and on dollars and cents
basis. In other words, let us see
Just how much the old people of
this country are going to get when
they are going to get it, and who is
going to pay for it. Here we are
dealing-not with opinions-but
with hard facts, with the provisions
Of the law.
Under the compulsory insurance
plan of the present law, none of our
old people will get any pension at
al until 1912. II you happen to be
one Of those insured-and, remem-
Der. about half Of our workers are
noe-you have to earn, on the aver
age, $115 q month every single
. month for the next 20 years to get
D monthly pension of $3.50, and
you have to earn $125 a month for
che next As years to get a pension
bf $59.S8 month besides-these
sums have to support both the
worker and his wife.
Payment Of Taxes
By 26,000,000 Workers.
But meanwhile. beginning on
Uanuary 1st of next year, 26,0o0-
600 working people begin paying
taxes to provide these pensions.
Beginning next January EMPLOYERS
must start deducting these taxes
from the pay envelopes of their
employees and turn them over to
the Government. Beginning next
January employers must, in addi-
eion, begin paying taxes on the
payrolls out Of which your wages
are to come. This is the largest
tax-bill in history. And to call it
social security" is a fraud on the
working man.
These taxes start at the rate of
81 in taxes for every 500 of wages.
They increase until it is Sc in taxes
Tor every $100 in wages. We are
told that this $6 will be eouallv
divided between the employer and
the employe. But this is not so.
and for q very simple reason. The
actual fact will be, in almost every
case, that the whole tax will be
borne either by the employe or by
the consumer through higher prices.
That Is the history of all such
taxes. This is because the tax is
imposed in such a way that If the
employer Is to stay in business, he
must shift the tax to someone else.
Do not forget this: Such an ex-
eesstve tax on pay rolls is beyond
question q tax on employment. In
prosperous times it slows down the
advance Of wages and holds back
Unemployment. In bad times it