Evening star., 1943-02-14
Security Vital
Beveridge Plan Studied
Continued From Page BID

tngs and private insurance. He expects
these to grow; an honorable status ia
accorded the virtue of thrift in the plan.
An American Beveridge plan would
hurt that fringe of private insurance
living on the weekly dimes and quarters
Of those poor who seek burial expenses
and other meager benefits Private an
nuitieS on the other hand, may grow:
the assurance of a retirement benefit
encourages many to supplement 1t by
private insurance
Planning on grand scale costs money
and the Beveridge plan Is no exception.
In 20 years time it would cost Britain
nearly So billion dollars annually An
American Beveridge plan might cost the
Treasury about Is billion dollars a year
at that time-a larger population and
more generous benefits account for the
dlterence. When stacked against a 1OO-
oillion-dollar war outlay this is small:
1t Is half again as large as the top New
Deal budget before the war.
For some this spells bankruptcy. Could
Britain bear the cost? Mr.. Beveridge
thinks so, If Britain builds up the ma
tional income from which taxes are
drawn. And this goes for America. Our
capacity to bear this burden should raise
no doubt; in this we are considerably
ahead OF Britain. The question is not
can we" but do we want TOP"
security Is not free by any means. Con-
tributions on the individual are heavy
IN Britain, much heavier than here. The
uroc
out difficulty" in Britain, thinks Bev-
eridge.
Inc tax on employers is a problem of
another sort; as cost of production il
might affect Britain's export trade. The
ADDED cost can be safely assumed"
thinks Mr.. Beveridge. 1t is likely that
these added costs will be one of the many
| factors which will shift the British more
and more away from the traditional basis
of international trade.
Here and in Britain, huge security ex-
pend1tures are seen as a "cushion"-onlv
one of the cushions-to break the shock
of postwar adjustments and future de-
presslons. Mr.. Beveridge is modest on
this score. Large expenditures for So
clal security keep up consumer expendi-
lures on food, fuel and clothing and help
to maintain stability in the economic
system. Britain weathered the 1929 COL
lapse better than we did partly because
such payments were made.
A Beveridge plan in America would be
no panacea for stability. 1t would help.
but no more. But no more is needed.
Stability per Sc is less important than
the assurance of security, and together
these occupy a position subordinate to
economic growth and expansion.
In world Of war and prospects of war
nation must look to Its sources of
growth and expansion In light of this
need-not security per SEA Beveridge
| plan must be Judged Are its total ex-
penditures conducive to economic activ-
| lty? Very likely. Do its specific pro-
| visions add to the physical vigor and
| fitness of the people on whom expansion
| depends? Assuredly.
Economic expansion may be called a
national imperative. Prospects of future
war leave no other course. And the con-
ditions that give rise to Beveridge plans
leave no other course. Our population,
as in Britain, is aging. More and more
money must be spent for the aged. AS
the numbers on the fighting and working
ages level off and decline, more and
more money must be spent on the health
and physical fitness OF the people. To
bear these growing costs and to keep in
the military swim, economic expansion
is the order of the day.