Evening star., 1947-01-08

system will necessarily fail to en-
ploy given numbers of people from
time to time, and that these other
must be brought forward
to prime the pump or fill in the
gaps. Here, too, we need restate-
ment. We should regard them
rather as an inescapable obligation
Of an enlightened people, and we
should expand them as our resources
permit.
The relationship between these
welfare programs and general eco
nomic conditions has been made
quately explored. Proposals for
employment, production,
and purchasing power, and pro-
posals traditionally regarded as
being in the general-welfare area,
should be integrated because they
are interrelated. Further studies
will provide the basis for this inte-
grafton.
Public health and education pro-
grams:
Among those whose income is less
than the minimum necessary for a
decent subsistence are those who
cannot earn their living because OF
physical unfitnesS or lack OF educa-
tional training.
A combination of public health,
education and regional
development programs would create
additional job opportunities and
supply workers At to fill these jonS,
Relatively small Government ex-
for health and education
yield a high national dividend. It is
more economical to prepare people
to earn a decent living than to care
for them through relief.
The Federal Government Is now
spending q large amount Of money
for health and education programs
for war veterans, but general ex-
penditures in these fields are rela-
lively small. I urge the Congress
to give early consideration to ex-
panded peacetime programs Of pub
lie health, nutrition and education.
Many Are Not Protected.
Social security:
Although maximum employment
would protect wage earners general
ly from the effects of prolonged mass
unemployment, the individual is still
exposed to many hazards of eco
nomic insecurity.
Our social security program has
not kept pace with the times, OF
with our increase in general living
standards. Many individuals are
not covered by the present provi-
sions of the act, and the benefit
to those covered are in
adequate under today's conditions
recommend that the Congress
cooperating with the States, take
action that will lead to increasing
the amount and duration of un-
employment benefits. Present un-
employment reserve funds are ample
to support such increases.
I recommend that the Congress.
amend the social-security laws tt
extend the benefits of old-age ane
survivors insurance to the occupa'
tional groups now excluded, and tt
include under unemployment com
pensation the employees Of all estab
lishments, regardless of size, in thu
industries now covered by the un
employment compensation tax act
In expanding general social security
the Congress should not overlook th'
railway workers, whose protection !!
under separate laws.
Medical Insurance.
While we compensate workers fol
loss Of wages due to unemployment
arising from lack of work oppor-
tunities, we do, not insure them
against the risks Of loss OF earnings
from temporary or permanent dis.
ability, nor against the costs o1
medical care. This represents no,
only a heavy loss for the individual
but a great waste Of productive
manpower.
There is an urgent need to spread
the risks arising from sickness ane
disability by insuring worker
against the loss of income and b!
providing, through social insurance
ready access to essential preventive
and curative medical services.
have, in a previous message, pre-
sented recommendations for a pro
gram of medical care and disabilit!
benefits. I urge early consideration
of this program.
Our present social insurance sys
tenn is financed by employe ane
employer contributions. We mus
recognize, however, that the EN-
ployes' contributions and the en-
ployers' payroll tax curtail mas
purchasing power and increase bust
nessmen,s costs. From an economic
point of view, it would be desirabl,
to finance part of the socia
security system out of the genera
budget. Therefore, ]. propose tina
the Congress, in working out sys
tenn of financing an expanded
Social Security program, give full
consideration to the economic al
well as the social import Of varioul
methods of taxation for this pur'
pose.
Part of the World.
S. Cooperation in internationa
economic relations. .
While most of this report ha!
necessarily been devoted to the do.
mestic aspects Of employment, pro.
duction, and purchasing power, WI
must bear in mind that we are par
of q world economy. Our sales ol
goods and services abroad, amount.
ing to about Is billion dollars ir
1916, played an important role ir
the maintenance of domestic pro.
duction, employment, and purchas-
ing power and may be expected te
do so this year. Such high level
of exports reflects In large part the
war destruction Of productive Ca
pacity in other countries. II We
are to maintain a ell-balancec
prosperity over a long period, oul
foreign trade must be established or
a more permanent basis.
In the long run we acn sell te
other countries only If we are will
ing to buy from them, or to invest
our funds abroad.
Both foreign trade and foreign
investment are vital to maintaining
q dynamic economy in this country
The shortages we have suffered
during the war and are even now
exneriencinr have proyed to lis OH