The Redwood gazette., 1936-11-19
Social Security

security act was brought to the doors
of local employers this week with the dis
tribution of employers file cards and will
soon reach the employee stage with the as
signment of account numbers.
January this mammoth experiment in
providing for the old man while he is still
young and capable of working will get un-
derway. the employee contributing one per
cent of his salary and the employer match
ing this payment month after month. After
each three year period the tax rate will in
crease by one-haf of one per cent until in
l949 and thereafter the tax will be three
per cent, the employer still matching the
employees contribution.
The act also provides for unemployment
insurance which applies only to firms en-
ploying eight or more, of which Redwood
Falls has several including The Gazette. In
this case the employer makes the entire con-
tribution, one per cent on 1886 payrols, two
per cent on 1887 payrolls, three per cent on
1888 and subsequent payrolls. Eventually
firms in this class will pay total OF six per
cent on their payrolls to the government,
which with three per cent from the employee
will mean nine per cent.
Although the act is of tremendous I'M
portance because it sets up program not
for one year or ten but a permanent pro-
stood and few felt qualified to discuss it. For
the same reason it has had little criticism
other than a last minute scare attack dur
ing the campaign.
Pressure for legislation Of this kind be-
came tremendous shortly before this act
was devised and put through congress.
Schemes of a similar nature had long been
employed by many large firms while labor
unions and other groups had been deter
mined in their efforts to spread the idea.
Not Townsend proposition although
the leader of the old age pension revolving
fund helped create the pressure which
brought it about, the social security act is
Fundamentally sound in that the employee
must first contribute to garner benefits and
his pension will depend entirely upon his
earnings during his productive life. 1t will
be the workers and not the drOnes whose
old age will be secured
One reason for the lack of criticism per-
haps is the popularity of the idea with labor
leaders. Another is that with so much
Townsend talk in the air, many employers
were afraid of something far more drastic
and disturbing to the economic scheme OF
things. They are relieved if not satisfied. A
still better one is that the feeling was rapid
ly becoming more general that something
in this vein is necessary and will have far
reaching good effects.
Statistics on the number of persons who
reach old age without acquiring funds on
which to spend comfortable old age are
appalling. Many never save anything,
others make unfortunate investments or
have reverses and sickness which eat up
their resources. In their declining years they
depend upon their children or the govern
ment for subsistence.
There is no stigma to social security
act pensions for the money is largely earned
and held apart for the employee. 1t is not
available for investment in wild cat schemes
Such pensions are not pittances. A man who
earns an average salary of 500 per month
from age 20 to 65 will thereafter receive
$53.75 per month for the remainder of his
life. If his average earnings are $3.50 per
month, the pension will be $85.
provision aimed at unemployment
provides that to receive benefits at 65, the
employee must relinquish his job and quit
working. Employment will also be afforded
by the infationary effect of providing am
ply for persons who otherwise would be
practically without purchasing power.
Some principles of the act are much in
volved and of doubtful worth. The unem-
ployment insurance phase aimed to minimize
relief rolls in future depressions may work
hardship on employers beyond the bene-
fits derived by employees. Like the WPA
and its forerunners, it may encourage lazi-
ness, perhaps penalize the more worthy en-
ployees to the benefit of the less efficient.
Certain it is however that something in
this line was necessary and certain to come.
For first attempt, the social security act
is probably very worthy effort. It is not
a part of the constitution but law that can
be modified as discrepancies develop. 1t is
beyond all doubt one of the greatest things
ever done for the working man and in the
long run is likely to benefit also the employ
e- Both should stand together in cooper
ating to give it every trial.
Some women buy hat as sort of pick
me-up when they are blue and depressed.
Which accounts for some of the hats?
One serious complaint on the 1887
models: the down payments haven't been
streamlined.