The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1936-12-31
Takes Worry
From Old Age
Workings Of New
Law Analyzed; 1t
Makes Industry
Care for Its Own
By EARL GOODWIN

By EARL GOODWIN
w WASHINGTON. = This gov
IA eminent is now embarked
Wv in a project to insure pen
sions to commercial and
industrial workers who reach the
age of sixty-five years. This is pro-
vided for in the social security law.
The project starts a series Of PEN
sion funds for twenty-six million
workers. employees of every known
sort of activity-with the two broad
exceptions Of farm laborers and do
nestle servants. These two classes
will be included in the course Of
time.
Social security as federal policy
is based on the idea that industry
and commerce should take care. Of
its own people; and that as prac-
teal matter of unemployment in
surance and these old age pensions
will prevent sudden emergency
''dole" operations in the future.
There certainly would have been
less relief by federal agencies with
federal money if we had established
a Woodworking system Of this sort
thirty years ago.
The contributions by employers
certainly constitute "a tax on pay
rolls; it is a sort of income tax;
and may be looked upon as a bur-
den on manufa cturers and business
which will ultimately be reflected
in the price of goods-something to
be eventually paid for by the con-
sumner. Farmers particularly have
q question to ask about this social
security. because at the moment
they appear to be getting nothing
out Of it except the possibility of
definite increase in the price OF the
goods they buy. However, the view
of administration economists here
does not entirely support the pos
sibility. Industry, particularly large
industrial plants, gets more efficient
as the years roll by. Actually the
administration foresees more ma
chimes and fewer employees as one
result Of these pay roll taxes. Also,
in broad view, there is this to be
said about the whole business: It
is designed to create self-sup-
porting industrial community which
will have greater purchasing pow
er in toto than If the purchasing
power dropped off and ceased sud-
denly at old age or in depressions.
For the average individual at
work in an office, store, factory,
mine, etc., the thing is simple.
When he starts work he asks the
postmaster for blank; he fills it
out with his name, address and en-
ployer's name. The postmaster re-
ceives the filled-in card and in due
time the worker gets card with
his name on it-also a number
which is the number Of his security
account for the rest of his life. And
all the rest of his working life, the
boss and the worker chip in equal
driblets, from one to three per cent
of the pay check. For every dollar
the boss contributes the worker con-
tributes a dollar. This continues
until the worker is sixty-five.
If the worker dies before that age
his estate gets a lump sum pay
ment. At age sixty-five the process
reverses; instead of the worker con-
tributing, he begins to get monthly
check for the remainder of his life.
The checks range from around $40
to $85 a month in accordance with
a mans working period and his
pay. The highest pay on which the
government takes portion is $1,000
a year. A worker can earn more
than that, but $1,000 is the limit on
which the security account is built.
When a man has job his en-
ployer chips in one per cent Of the
mans wages through 1887 and up
to 1910. Then the percentage is
raised and by the time 1919 rolls
around it becomes three per cent
contribution by both parties. Thus
man drawing $500 a year in
1887 gets that $1,000 minus Sis, TAX
en- out every time he is paid. If
weekly, his pay check is minus
about % cents. and his boss chips
in the same. If the man is still
getting $1,000 in 1949 both parties
chip in three per cent or $45 apiece.
The old age check starts in 1912.
five years hence, and in Washing
ton among lawmakers and other
leaders of thought there is no dis
cussion at all about this policy,
which is mild form Of old age
pension for workers. It is presumed
to prevent millions Of future cases
of restitution, dependence, poverty
security for the mass Of workers.
UNEMPLOYMENT INSURANCE
Another phase entirely is the I'M
employment insurance policy under
which the federal government urges
and aids the various states to set
up funds to tide jobless workers
through periods Of unemployment.
Here the government imposes tax
on payrolls, from per cent to 3
per cent, and the tax falls on prac-
ii .ally all employers-except farm
nre ho,,seholders. and other scat