Show f unemployment INSURANCE A MUCH DEBATED QUESTION the proposal to levy a five per cent federal tax on the employers payrolls to create an unemployment insurance fund as provided in the wagner lewis bill promises to be a much discussed question the friends of the bill claim that it aims to create uniformity in the cost of unemployment ft insurance su rance they admit that the state governments are the logical legislative units to undertake such insurance but states are slow to do so for the reason that levies on employers payrolls within a given state would P place lace business in that state at a competitive disadvantage with business in states 1 which did not levy for unemployment oy ment insurance purposes they say bay the wagner lewis me measure asure by establishing a uniform federal tax overcomes this difficulty in states where whee unemployment ansur ance laws are established the employers would be compensated proportionate remissions from the federal government so as to make maice the e load fall equally on all the proponents of the bill contend that unemployment insurance is now recognized by the leading economists and many of the large industrialists as a necessity and the only way to correct the longtime unemployment problems further that as an instrument of social justice it will also stabilize industry and lessen the severity of panics by maintaining a constant buying power and the time to start it is now those who express doubts about the efficacy of unemployment insurance point out that industry is already overburdened and that any additional loads at this time will not only tend to break its back but seem inconsistent with the purpose of the administration to revive industry and business so that wages can be raised and hours shortened they declare that the passage of the wagner lewis bill would let down the bars to further federal coercion of the state that in fact it is an instrument ment to force them to immediately enact unemployment insurance legislation and is only a scheme of deferred payment to employees for services lenderd ren derd other points offered against unemployment insurance are it will create a political grab bag superior to any now existing it will strip employers and employees alike of much voice in handling their own affairs and has within it germs destructive of all initiative in industry and efficiency in general it will discourage thrift which is the motive of all individual and social progress the proponents answer and say that experience of recent years shows that the periods between panics become shorter with increasing severity incident to each and provision must be made to avert these disastrous effects |