The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1945-01-27
BABSON REVIEWS
SOCIAL SECURITY
BY ROGER BABSON

BASON PARK, Mass, Jan 5
We hear much from Washington
about 1.-The need for more manpow-
err, and hear even more from Ia
Dor about the need for higher
wages. Perhaps both are needed:
but government officials and labor
leaders are making big mistake
to do so much talking about it.
Why? Here is my answer: Such
talk is driving employers to in.
stall more and more labor saving
machines and processes which may
add chaos to confusion after the
war.
Let me explain: Readers are con.
tinually asking the reason for the
deductions on their pay envelopes.
One came in to me this morning
from single person getting $1,000
per week with four pay envelope
deductions:
l per cent for Social Security
l per cent for Unemployment In.
surance COLLECTED from employees
in only 4 few states but from EN-.
ployers in alb, Is ITO per cent
for Income Taxes, 16 % per cent
for U. S. Savings Bond purchases.
All OF these took about ten dol.
lars out of his pay envelope. The
last item was partly voluntary and
this bond purchase can be redeem.
ed at any time but the other three
are compulsory and make big leaks
in all pay envelopes.
OF the three compulsory deduc.
tons to your pay, the income tax
money you can kiss good-by. That
is your contribution to the wal
and surely it is very small COM
pared to what our boys in the serv.
ice are paying in blood and sweat
The Social Security payment is te
give you "ten to fifty-six dollars
per month depending on years o.
employment when you get too ole
To work, plus IL workers benefi
ior wife when she is IS years O.
age; while the Unemployment In
surance is to give you from two tt
thirty dollars a week, depending
upon State in which you reside fol-
the first weeks of your next perioe
of unemployment to be caused by
the labor saving machines n {
processes which employers are
now being forced to install.
Because some reports claim tina
Uncle Sam is spending your Socia
Security payments for current ex
penses instead of investing the
money or saving it up as al
insurance company would do, some
people are fearful. They are afraie
that when they get old or become
unemployed, Uncle Sam or t h {
State will not have the money ''ir
reserve" to pay the promised ben
efits. Don't let any insurance sales
men scare you with such foolisf
talk. The U. S. Treasury is invest
ing your weekly payments in gov
eminent bonds or their equivalen
which is the very best investment
any insurance company ever made
with your money.
When you deposit money in
savings bank, the bank does no
lock your money in its vault ant
wait until you want to draw it out
The bank loans it to some one t.
build a house or do something else
or the bank itself may use it t.
buy Government Bonds! In thi
case the money is being treated
just the same as your Social Sc
curity money is being treated
just the same as your Social Sc
curity money is being treated. As
to how much your Social Securit.
money will buy.-in food, clothing
and shelter-when you get old i
another question. This depends up
on how long the war lasts and III
postwar initiation. There, however
| is nothing to fear from the argu
ment that 'the Federal Govern
ment has no reserve funds TO
you.
One more thing;-Because 1
present Social Security rate of
per cent now provides more thai
enough money" to meet all require
ments, it probably, nevertheless
should be increased Immediate.
after the war to per cent. Thi
would be according to the advic
of expert insurance statistical &C
tuaries. The fact that the State!
now have a reserve of five billlol
dollars for unemployment, etc. i
no reason why we should suspend
payments to the Federal Fund. I'm
less our school committees '
wake up to prevent postwar un
employment, State unemployment
F., funds may be insufficient to tax
care of you during the next de
preston!
FUGITIVE CAPTURED