Czechoslovak national insurance : a contribution to the pattern of social security the Czechoslovak National insurance act.

  • Czechoslovakia.
Date:
[1948]
Catalogue details

Licence: In copyright

Credit: Czechoslovak national insurance : a contribution to the pattern of social security the Czechoslovak National insurance act. Source: Wellcome Collection.

    32/240 (page 30)
    But the problem of redistribution of the national income implies a further question. Is this redistribution more just and more equitable? As regards justice, it used to be difficult to determine what profit margin was morally justified in the case of self- employed persons, in view of the fact that these persons were unable to secure themselves against old age otherwise than by private savings derived from high profits, or, in some cases, by private insurance, again paid out of high profits. By in- cluding this class of persons in the public insurance scheme (thus making them socially secure against old age, disability, sickness, etc.), we can, in planning production and distribution, eliminate these excessive profits, and the hope of such profits. Equality is ensured on the income as well as on the expenditure side. As regards income, the emphasis placed on private savings is reduced (and at the same time economic fluctuations resulting from fluctuations in savings); and as regards expenditure, the comparative stability of old age and disability pensions as well as of sickness’ benefits, mater- ially contribute to ensuring to the broad masses of the popul- ation a constant level of consumption even in periods of exceptional need.—The barter economy of the retired farmer’s annuities (výměnek) paid formerly by the farmer’s heir, will now be replaced by the money economy of pension benefit. In connection with the share of the sum expended on national insurance in relation to the entire national in- come it is necessary to determine whether the increase of social benefit rates and the granting of benefit to additional sections of the population does not cause inflationary pres- sure: If we compare the present state of affairs with the anticipated effects of the introduction of national insurance, we find that the additional sums distributed in the form of social benefit will amount to an additional 13 milliards Kčs, whereas the amount taken in contributions from employed persons, their employers and from self-employed persons will be increased by about 10 milliards Kés against the current fi- gure. That means that 3 milliards Kčs spending power will be distributed in excess of the sums taken in contributions. This increase of spending power represents slightly less than