| Show j The I IN D OLLARD OM A DAY I JI t It I is i a common Idea that to put unemployment insurance into effect all al that is necessary Is to take a certain cere tam tain percentage of money from those who tai have work or receive incomes and give ive it i to the unemployed unemployed Just Just ed just like that lkc The that simplicity of the process is is hard hit hi by James Jaes D. D Craig actuary of the Metropolitan Life Lie Insurance company speaking before a thrift meeting of the American America Bankers' Bankers as as- Strangely enough the themore themore themore more a man knows kows about any economic eco ceo subject the less simple he finds for instance it it Mr Craig says Much is heard today about unemployment insurance for the workers of this country It I seems to be a popular popular pop pop- ular belief belef amon among the more ardent proponents that by some Aladdin's lamp a program of or unemployment insurance insurance in in- sance can be made to function in a n fortnight that somehow by actuarial and political wizardry a reserve fund fundor of or great reat magnitude could be m made de to spring up that the right of the six million unemployed to benefit would be clearly cearly and fairly determined and within a few short weeks we would begin to see the nation naton overcoming the ill i effects of the depression in so far as the more unfortunate were concerned If I we knew kew such a plan we would be the first to argue for it it it An Any sound Lound arrangement which would make mae it possible for the people to obtain ob ob- ob tam tain such security would claim caim our undivided support support But unfortunately unfortunate unfortunate- ly we know kow of no such plan e t tI t I would not want you to feel that unemployment insurance is entirely impracticable and we as a nation naton should wait for the perfect plan to descend from some mythical Mt Sinai Quite Quie the contrary Security a against economic hazards is the cornerstone cornerstone cor cor- of any lasting program of industrial relations Now is i the time for American employers and em cm- aloyes to collaborate more closely cosely than han ever Unemployment is industry's indus indus- try's problem Every means should be se adopted to encourage employers employer and to cooperate in each individual factory factor trade tade and industrial Indus Indus- rial trial community Only through ex cx- using individual factories fac fac- per tories as laboratories are we going goin tores eventually to discover any plan o or plans under which the nation naton as a whole will wl reap a genuine enuine economic and ad social profit profi 4 4 1 eThere e 6 e There Tere is growing evidence that tha employers are vitally interested i in taking constructive action acton Plans Plan cannot be established overnight am and put into operation until sufficient capital or accumulated reserve ha has been developed On such a very limited limited lim lim- basis basi unemployment benefits might be kept on a sound basis Whether they could be main main- tamed on that basis against political pressure is a question queston Whether r sue such reserve plans as the employers favor favo could be set up administered anc and kept solvent under governmental supervision su suo su- su in 48 states is very much i in doubt doubt Under an arbitrary form o of government it I might be done but bu countries with n a democratic tc form o of government have found it i very difficult cult cul to resist the pressure presure for increase increasIng Ing benefits under their various plans Experience abroad has been bee limited The larger countries with wit wih the more extended experience have hav been unable to keep the issue out o of politics or to prevent the government govern govern- gover ment meat from becoming very deeply in in- 0 9 e I Mr CraI Craig indicated the sound actuarial actuarial actu actu- arial anal fundamentals of insurance which he declared cannot be applied to the larger aspect of general In i the following questions question Does Docs an a Insurable interest exist To what extent arc are the characteristics tics of human nature involved What Wha is the relation between income anc and benefit What action is to be taken take after the period of benefit has expired expired ex ex- ex What is the nature of or admin admin- What will wi the cost be an and who will pay it Insurance is a sd- sd wi sc- sc ence subject to certain fundamental principles and as yet et no one h ha has s found a method of preventing th the operation of these principles no ma mater matter mat mat- ter how desirable the purpose of th the insurance may be Experience has ha repeatedly shown that the technical questions stated above cannot be sue sue- waved aside |
