The people's voice. [volume] (Helena, Mont.) 1939-1969, 1944-07-07
Old Age and Survivors Insurance.

Old Age and Survivors Insurance.
l. Benefits: The proposed increased
benefits are still inadequate Increas
ing the minimum benefit from the
inadequate sum of $40 per month tc
the still inadequate sum of 500 pei
month does not provide a minimum
sufficient even for bare subsistence
In 1871, the annual taxable wages OF
covered persons averaged $1,007 for
the United States; moreover 43.4%
of such persons in the years 1887.
| 1889 earned less than $500 per year.
Taking average wages of $1,000 year
| ly, or approximately $85 per month,
the benefit after ten years of cover
age would be $29.70 per month; after
40 years of coverage it would be
1880 If the beneficiary had wife
over 60 years of age, she would be
entitled, in addition, to one-half the
primary benefit, or SASS and 1880,
respectively. The bill would do moth
ing for persons earning less than $50
per month Except increase the mini
mum from $40 to $20). The National
Resources Planning Board points out
that such workers would average less
than S35 per month, after 20 years of
covered employment, for both the
worker and his wife.
The weakness of the benefit form
ula is that it retains one of the under
lying concepts of the Social Security
Act, i.e., the direct gearing of bene-
fits to an average wage, so that the
social security system compensates
for 'wage-loss" instead of providing
minimum subsistence. The theory is
that a social insurance program can
not be expected to rise above the
level of the economy in which it func-
lions that it is not practicable to pro-
vide a man more when he retires than
when he works. Indeed to do so, it
is stated, will disrupt private industry
which has been paying low wages.
There is no reason why the Social
Security System must underpin in
dustry which is not providing sub
sistence for its workers. An economy
cannot be entirely reconstructed by
it's social insurance system; but its
cancerous areas need not be pro-
tected thereby. The starting point
for any social insurance system
should be living requirements" not
wage levels" in private industry.
We believe that a Social Security
system should hold out to the Amer
lean people a promise of security
from want, and should guarantee TO
every beneficiary minimum benefits
which are not less than an amount
sufficient to maintain life in health |
and decency, such amount to be deter
mined by an appropriate government |
agency upon investigation of living |
costs, with regional differentials to |
to regional cost differ |
entails and subject to periodic revi- |
sion as to the cost of living rises or
'alls
2. Eligibility: The vast extension of |
leverage raises a question as to the
iced for the qualifying requirements
lnder the law. At present, the quail
ying requirements are stated in
erms of fully insured" or Current
y insured status, reflecting the wage
history of the individual These re-
luirements are only very slightly al
cred in the bill. The argument for
hese qualifying requirements is that
f insurance concepts are to be fol-
owed, only those should be included
Who have paid their premiums.
These requirements, however, tend to
exclude the lowest income groups.
When virtually all persons are com
under the program, it should
make no difference that one individ
al has been in the system for pc
iod of time shorter than his fellow
workers..
g. Retirement Age: The retirement
ge for women, whether claiming as
rage earners in their own right or as
,ives or widows, is reduced to co.
he desirability of this change is evil
ent. 1t may well be suggested, how
yer, that the age of go might be
as an appropriate retire
lent age for men as well, in view of
be recognized exclusion of older men
rom industry.
Next week we will discuss "Ma-
arnifv Panafjfeu