A thorough study of the unemployment insurance in England has just been completed by Leo Wolman for the report prepared by the National Bureau of Economic Research. This now appears as part of the complete report of the Committee on Unemployment and Business Cycles issued by Secretary Hoover, for the Presidents Conference on Unemployment.
The United States has been interested in English experience with this type of social legislation but the changes in the policies and details of the scheme during the profound disturbance and depression of recent years have somewhat confused those who have tried to keep in touch with the situation.
Mr. Wimans’ chapter indicates that in spite of many complexities and difficulties, the English scheme has not proved unworkable.
Although mainly opposed when first advocated on the ground that the measure was paternalistic and wrong in principle, it now seems that this type of opposition is a minor element in the situation and that it is against particular features of the system that the sharpest criticism is made. Compulsory insurance against unemployment apparently has become a permanent feature of English life and its form is likely to be changed in future because of discussions resulting from the scrutiny of specific administrative measures rather than from opposition to government insurance of any kind.
Mr. Woman points out that employers complain of the high cost of administration and condemn what they believe to be an undue laxity in the payment of benefits. The trade unions, on the other hand, find the benefits too small to be satisfactory, and would increase the contribution of the employers—mainly advocating that the whole cost of the scheme be put on industry. Employment exchanges are shown to be an indispensable and valuable part of the insurance plan, yet criticism is not lacking that the exchanges are not efficient.
The Committee on Unemployment and Business Cycles states in its recommendations on this subject:
“To provide reserve funds or savings during periods of prosperity from which the worker may draw during periods of compulsory unemployment is one of the important methods advanced as tending towards relieving the fluctuations of business. Such plans of cooperative provision for relief against unemployment are not primarily designed to decrease the amount of unemployment but to alleviate its evil effects.
“The idea of employer, employee or both, contributing during periods of employment to a reserve fund under separate or joint control to help sustain the worker when unemployed in periods of depressiona and to equalize and stabilize his purchasing capacity merits consideration. It attacks one of the most vital of our industrial problems.”
From the editorial page of the Tri-City Daily Gazette, published every week-day afternoon, Leaksville, N.C., Saturday, April 14, 1923, Murdoch E. Murray, Editor. Name of author of study is spelled Wimans on first reference and Woman on second reference. I don’t know which is correct.
No comments:
Post a Comment