The effect of social insurance upon the well being of the working masses is recognized by students of economic conditions with hardly any exceptions. There are probably some 60,000,000 in Europe who with their depend ents enjoy some one or more forms of social in surance protection. The financial operations of the social insurance systems annually measure many hundreds of millions of dollars, which go to relieve destitution and suffering among wage workers, either in form of pecuniary benefits or medical or similar curative care. A substan tial proportion probably more than one-half of i that amount, is contributed by the employers and the State in virtue of the law. But it is frequently pointed out that of more importance than the mere relief of existing distress is the preventive effect. Accident compensation proved to be an important factor in accident prevention, health and invalidity insurance though a better form of organization of medical, surgical and hospital aid is recognized as a powerful factor for general conservation of life and health. Maternity insurance is advocated because of its effect upon the health of mothers, and also as an additional force in the struggle against ex cessive infant mortality, unemployment insur ance to exercise a salutary effect in prevention of excessive depressions, because it preserves to some extent the purchasing powers of the unemployed wageworkers.
As against these advantageous effects, social insurance is being frequently charged with pro viding a stimulus to malingering. That a cer
tain amount of such malingering develops un der social insurance as well as under any other form of insurance is usually admitted, but it is claimed that this evil tendency may be kept in check by appropriate administrative care, and that it is more than counterbalanced by the salutary results upon the health and happiness of the working class. It is admitted that in no country has social insurance as yet entirely abolished pauperism and destitution, because in no country has this method been developed to its highest capacity, and also because there exists certain factors of destitution not amen able to the social insurance method, but the rapid extension of this method from one coun try to another is pointed to as a sufficient argu ment in favor of the advantages to be derived by the entire country by this method.
Bibliography.— Commons, J. R. and An drews, J. B., 'Principles of Labor Legislation' (New York 1916); Dawson, M. M., and Frankel, Lee K., 'Workingmen's Insurance in Europe' (New York 1910) ; Lewis, F.'W., 'State Insur ance) (New York 1909) ; Rubinow, I. M.,