The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1938-09-01
to afford real security to those already covered

Ito afford real security to those already covered
rather than to extension of coverage
The draft bill finally recommended to Congress-
mendation of the Advisory Committee for Fed
era grants-in-aid which would have given lev
erage for uniform standards but based the law up
lon the tax support principle. At that time doubt
Jas to the constitutonality barred consideration of
la Federal Act. AS a result we have this confusing
and complicating situation: Within a territory
(which is essentially an economic unit, with pro-
duction flowing into nationally organized markets,
(which, in turn, are geared in world markets and
International cartels, we have attempted to pro-
vide against unemployment of workers employed
10y industries organized and operating nationally
|by means of 81 separate laws with widely differ
ling standards and provisions State boundaries are
mo barrier to the expansion and operation of in
|dustries nor to workers following jobs. Our work
|ers are notably mobile, moving freely throughout
1.-THE country and across national boundaries in
search of work 1t was to prevent the development
|of internal barriers that tariffs or taxes on inter-
|state commerce are prohibited. An effective plan
flor unemployment compensation should conform
Ito the essentially national character of our econ
ionic life and the forces which condition it.. The
|Supreme Court has opened the way for Federal
unemployment compensation law by upholding
Federal old age benefits. We also quite ia
|miliar with the grants-n-aid principle to encour
Iage uniform and constructive standards and eff
lfective administration.
Existing laws base amount and duration of
benefits upon earnings thus penalizing a worker
unable to have steady work or forced to work at
llow rates. Our second main consideration is to
know how to make unemployment compensation
laws carry out the purpose of social security and
provide adequate security for workers deprived of
Ian opportunity to earn their livings. Such
benefits provided under the law are right of La
Dor and in charity or aid for dependents.
|Ihe provisions of the law should be such that
workers could understand them and have tangible
|evidence of their rights. The essence of this is
simplicity of provision and administration. If
workers are to have security it must rest speci-
Ific information and confidence. Any law too diff
licult to explain begets insecurity.
| In the third place the Administration must
lpass upon claims with speed and precision, guided
by real understanding of the purposes of social
security.
Labor must approach this problem Of improv-
ling and changing our social security program SO
that it may fit into our every day ife-not locally
or piece-meal, but through our national organiza-
ton Employers have protested the costs of So
cial security because they so far have not realized
the benefits to business through sustained buying
lpower. They trusting to merit rating" tC
lower their payments and are beginning to propose
PRODUCTION of tax But our funds have been sub
ijected to a real test First, we must provide ade-
quate benefits for the unemployed as it is much
too early to reduce revenues
In the District of Columbia the Director OF
Unemployment Compensation recommended tax
reduction because money was coming into the funC
faster than it was paid out-consequently reserves
were accumulating. But the director did not re-
port on these facts. Average compensation to the
unemployed is approximately $500 a week; the
average duration of payment is five and a hall
weeks.
Nor did the Director report whether the
amount and the duration made adequate provision
for the unemployed whether the waiting perioc
is too long; whether a minimum benefit should not
be established; whether benefits were given to al
,eligible or whether eligible claimants failed tt
meet regulations through unfamiliarty with re
qurements or because the administration staff haC
j fully mastered it's complicated and new task.
! BY no stretch of the imagination could Dstric
of Columbia benefits be regarded as fair or ade
> 'quate The y. C. law is much less generous thar
some. Funds should be used to pay better bene
T fits. There should be no consideration of lowe
taxes before unemployment benefits are adequate
in amount, duration and coverage.