Unemployment insurance has been tried in a few European countries and has been advocated in America. This plan contemplates that each employer shall contribute to a fund from which a stated wage scale shall be paid to those who remain out of work through no fault of their own, or that the government shall provide such a fund from the proceeds of taxes. It is easy to see that a scheme of this sort might be seriously abused, yet so long as the problem of unemployment remains serious we must strive to find some way of solving it.

Old-Age Pensions.—Most wage-earners do not save enough to provide for themselves in old age. The result is that after long years of toil they are dependent upon their children, or must eke out a precarious existence by doing odd jobs, or must be supported by the public poor-relief funds. |The experience of Great Britain and Germany.| This is not a desirable state of affairs and in some European countries, notably in Great Britain and in Germany, systems of old-age pensions for workers have been established. In Germany the worker pays a small amount each week into the fund; the employer pays an equal amount and the government pays the rest. In Great Britain the employers and the government pay it all. Every wage-earner, on reaching old age, receives a small weekly allowance for the rest of his days.[[190]] The cost of an old-age pension system is enormous, but in the long run it is likely to represent real economy. Sooner or later the system will probably be established in this country; the only question is whether, when it comes, the wage-earner should be required to pay a regular contribution during the years in which he is able to do full work.

The patriotism of American labor.

American Labor and the War.—Among the various factors which helped to win the World War the loyalty and enthusiasm of American labor should be accorded a high place. War always creates a great shortage of workers, partly because so many able-bodied men are taken into the army and partly because of the tremendous need for workers in munition plants and other war industries. During war, therefore, the labor organizations are always in a position to make demands which cannot well be refused. It is quite true that American labor took advantage of its opportunities during the World War; but so did the employers. The wages of labor rose everywhere, as did the profits of industry. Nevertheless it can fairly be said that labor co-operated with the government at all the essential points and produced the uninterrupted flow of materials which was needed to ensure victory. Certain it is that without this co-operation on the part of labor the United States could not have figured so prominently in deciding the ultimate issue of the great conflict.

General References

Isaac Lippincott, Economic Development of the United States, pp. 491-511;

R. T. Ely, The Labor Movement in America, pp. 34-91 (Growth and Present Conditions of Labor Organizations);

T. S. Adams and H. L. Sumner, Labor Problems, pp. 461-501 (Labor Laws);

F. T. Carlton, Organized Labor in American History, pp. 11-44 (Epochs in the History of Organized Labor); pp. 169-197 (Labor Parties); pp. 198-225 (Ideals of the Wage Earner);

R. F. Hoxie, Trade Unionism in the United States, pp. 254-275 (Collective Bargaining);