Role of Social Insurance in Providing Fringe Benefits

Abstract

The economic security of individuals and their families against the hazards arising from such risks as old-age retirement, sickness (both short-term and long-term), unemployment, and death can be provided through several different methods. The most fundamental method, of course, is through the action of the individual himself (or, what amounts to virtually the same thing, through the efforts of the family group with which he is associated). Another method is through measures developed for what might be termed private groups-whether these be associations of individuals or arrangements developed in the course of employment (by the employer unilaterally or by collective-bargaining processes). The remaining method is through governmental action; from certain viewpoints, this might be said to be merely a broader development of the other two methods. Economic security can be provided through governmental means in a number of ways. Perhaps the most rudimentary procedure is when the government requires employers to provide the benefit protection. In most instances, this is not too satisfactory because of enforcement and administrative problems. Another