Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1942-08-06
Government Issues
Old Age Pensions
and the Lien Law
By Hjalmar Petersen.

o11OA tl1C A1OA Law
Back in the early days of our
country when agriculture predom-
mated, when there was so to speak
no large cities and urban problems,
when the farm was not only a home
but little factory and thus self
sufficient, there was little, if any
need for social security legislation.
AS time went on, large industrial
centers with millions of people clus-
tered closely together grew, great
transportation systems developed, in
dividuals specialized more and more
in various trades, and with periods
OF unemployment and unrest, there
came the need for social legislation.
If there is a time in life when
people should be free from economic
worry, that time is in their sunset
years. Progress has been made along
those lines during the past few de-
cades in some of the Eurpean coun-
tries as well as in America, especially
during the last decade.
In this connection much credit must
be given to the Townsend movement
for their work of informing the gen.
eral public concerning the need of a
universal old age pension law in the
United States. Eight or nine years
ago, when the movement originated,
the plan was not complete and was
not worked out as well as is the
plan now presented by the Townsend
people. At first there was talk of
5000 per month to each of the re-
cipients of old age pension. Now the
plan calls for whatever the gross
earnings tax under their plan will
produce, whether that be $40, $50
or $50 per month.
Realizing the wealth of our coun-
try, the productivity of our soil,
abundance of natural resources, and
in the main, thrifty people in the
United States, an economist recently
said that he would like to see a uni
versal old age pension that would
give to the recipients the average
income of every man, woman and
child. With a national income of 80
billion dollars that means an income
of $500 per year to every man, woman
and child, or approximately $50 per
month.
Here in Minnesota the maximum
old age assistance to anyone above
the age of IS is $50 per month. Half
of this is paid by the federal govern
ment, one-third by the state, and
one-sixth by the county. The aver
age monthly allowance per person
is in the neighborhood of $22 per
month.
The federal government has raised
the allowance so that if states and
local subdivisions make up $40 per
month, the federal government will
also allow $40 per month, thus max
ing the maximum in such states that
comply with the new law, $40 per
month.
California, Oregon, and Colorado
have come under the new law receiv-
ing a maximum of $40 from the fed
eral government to match their own
$40 for senior citizens receiving old
age assistance.
Old age pensions should be uni
VERSATILE same in all the 48 states.
Until that goal is attained, improve
ments should be made in state acts
where needed as in Minnesota.
Here in Minnesota, we are cursed
with a law that should be wiped
off the statute books, namely the
Homestead Lien law. This law, en-
acted under the present state admin
istration, is anti-social and portrays
a cold, cruel political philosophy
Aside from being anti-social it is
also unsound from an economic stand
point. 1t is not good business.
The Homestead Lien law is deter
rent to home ownership. It is, tt
put it mildly, step in the wrong
direction. It does not further thrift
or frugality. Those without homes
who are in need of old age assist.
ance, can secure such assistance with.
out submitting to homestead lien
Those who have been economical
and frugal, saved their money anc
built homes but in their sunset year.
find it impossible, due to unemploy
ment and age, to provide for them
selves, are subjected to the humilia
ton of giving lien to the state upol