Social insurance and allied services : memorandum on the Beveridge Report

1943-02-10 1943 1940s 24 pages 18. (55) Sir William Beveridge, in his Report (page 120), bases his plan on three Assumptions :- A. - The institution of Children's Allowances. B. - A Comprehensive Health and Rehabilitation Service. C. - Maintenance of Employment. (56) Of these three Ass...

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Institution:MCR - The Modern Records Centre, University of Warwick
Language:English
English
Published: 10 February 1943
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Online Access:http://hdl.handle.net/10796/AF7084A4-C724-42CC-8A21-0B6B7A15FA0E
http://hdl.handle.net/10796/D9CFDEAA-D437-496E-936B-F8B8DD28405B
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Summary:1943-02-10 1943 1940s 24 pages 18. (55) Sir William Beveridge, in his Report (page 120), bases his plan on three Assumptions :- A. - The institution of Children's Allowances. B. - A Comprehensive Health and Rehabilitation Service. C. - Maintenance of Employment. (56) Of these three Assumptions, he clearly recognises that Assumption C - Maintenance of Employment - is the most vital of all, and, indeed, the basis upon which the whole fabric of his plan most rest. In dealing with this Assumption, however, he points out in his Report (page 164) that "Discussion of the methods and conditions of satisfying Assumption C of the Plan for Social Security falls outside the scope of this Report". (57) In order, however, to allow his plan to be tested as a working proposition, Sir William had necessarily to base his calculations on an unemployment figure which would justify his Assumption C, and the unemployment figure he has assumed as sufficiently low to meet that Assumption, and round which the whole of the other calculations so largely revolve, is 10% of the present insured population. (58) If in this Memorandum we proceed to test the reliability of that Assumption it is not because we do not hope and believe that an unemployment figure as low as 10% may be achieved. Indeed, we feel that every activity of the nation must be devoted to that end for upon its achievement depends, not only the actuarial basis of the "Beveridge" proposals, but also the whole morale and welfare of the country. But, as we have already shown, there are international and other factors beyond our control which may largely determine the employment position of an exporting and importing country such as ours, and, as we will show later, there are, in our view, even in the "Beveridge" proposals certain factors which would militate against the reliability of Sir William's unemployment percentage estimate. (59) It has to be noted at the outset that, in the 20 years between the two wars, one thing that defied prophecy was what the unemployment figure was going to be in the following year, or even over a trend of years, and it will be seen from the previous Table - Table "E" - that, apart from the boom year of 1920 when it averaged less than 4%, the unemployment figure ranged from 9% to/ 200/B/3/2/C216/5/50
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