The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1937-06-17
A PARADOX

A PARADOX
The Social Security Act has Gre
ated an interesting paradox.
Practically everyone believes the
purpose Of the law is good, and the
public. interest demands that pro-
vision be made for the aged and the
unemployed. At the same time,
practically every competent econo-
mist believes that the present act is
badly drawn, contains the gravest
kind Of legislative errors, and must
be drastically revised.
This has been the feeling ever
since the law was passed. However,
there was no strong movement for
revision, for the reason that the act
was Immediately taken to court in
a test of it's constitutionality, and
there was no point in doing any,
thing about it until that had been
determined. When, a few weeks
ago, the Supreme Court held the
act constitutional in two decisions
Zone upholding the unemployment
benefit part of it by S to vote
of the justices, the other upholding
the old-age benefit part by Z to
2 majority it came again into the
public eye, and a definite movement
to maintain it's virtues while Kidding
it of its vices is. underway.
It is notable fact that liberal
and radical commentators wish re-
vision no less than conservative
commentators. The more or less
socialistic League for Industrial De-
mocracy has published mono
graph criticizing the act, and so has
the Twentieth Century Fund, which
has board of directors consisting
largely of prominent industriaHsts.
And in some instances, both radi-
Gals and conservatives make identi-
cal criticisms.
Objections to the act are of vary
ing kinds. Some of the more Inn
portant are:
1. Under the wording of the ex-
listing law, all of the funds raised by
taxing employers and employees for
old age insurance must be invested
in government bonds. It is estimat-
ed that the money will total $47,-
600, 00O,0 by 1880. The national
debt (which means the amount of
government bonds outstanding) is
now at record peak of about
$35, 0OO, 10000 AS a result, If the
act is left unchanged, it will be nee
essary to increase our debt $4,000
100000 in the next forty-odd years.
to take care of old age insurance
funds alone, even if no government
bonds at all are then held by cor
porations, individuals, trust funds,
educational institutions, banks, etc.
2. There is nothing in the law to
prevent congress from selling the
government bonds purchased with
the social security fund and spend
ing this money for any purpose it
wishes. Thus, an irresponsible
Congress might legally dissipate the
billions of dollars workers and en-
ployers deposit to insure a subsis-
tence livelihood in old age.
3. Some commentators feel that
the cost of social security should be
borne by the entire nation, and paid
for by general taxation, not just by
taxes on employers and employees
alone. In other words, under pres
ent provisions, the tax acts as a
burden on productive industry, in
fluences employers toward using
more labor-saving machinery and
against hiring more workers. It is
somewhat in the nature of a class
tax, whereas say these commenta-
tors, it should be general tax,
inasmuch as it is designed to in
crease purchasing power, which is
of benefit to everyone.
4. The administration of the act,
to quote Dorothy Thompson, sis in
credibly cumbersome, complicated
and expensive" According to Abra-
ham Epstein, executive secretary of
the long established American As
ISOLATION for Social Security, Tn
stead of promoting adequacy Of
standards and uniformity, the act
encourages confusing variety of
systems. Indeed, the act has already
brought about a miscellany of 48
divergent state plans
This does not exhaust the list of
criticism of the act, but it out
lines the most potent and import
ant. Congress is listening to the ex-
perts, and it is certain that senti-
ment within that body in favor of
revision is growing.
Bill Green says if ministers gave
us sermons as trashy as the shows
some people go wild over not even
the janitor would stay for the ben
ediction.
ut stacks up about like this" de-
clares Bob Brown. can optimist has
no money and a pessimiSt won't