and for burial insurance.  The losses of wages meantime remain unequalized by insurance indemnities.  A large proportion of the cases of temporary destitution in ordinarily self-supporting families is due to sickness.  The German experience shows that 4 per cent of wages, collected in part from employers and in part from wage-workers, is sufficient to give a far better medical service than can be had through private effort, to give some indemnity for loss of wages, and to carry on a very useful hygienic work for the families and for the public health.

Sec. 11. #Old-age and invalidity pensions#.  Insurance to provide pensions for old-age and permanent (partial or total) disability is in nature but an extension of the insurance against accident and sickness.  In a relatively small number of cases accidents result in permanent disability and it is both illogical and inhumane to limit, arbitrarily, the compensation in such cases to a certain period, as two or three years, as is done in many compensation laws.  The disability due to advancing years is in nature a chronic illness, inevitable, sooner or later, to all who survive.  The movement to provide some indemnity in such cases has been rapid in European countries, doubtless because the problem was a very pressing one where the average earnings are low.  In Germany and Austria this development has been more in connection with other forms of insurance; in Denmark, Great Britain, and France it has had more the aspect of an extension of poor relief.  In the United States little has been done to provide for these great needs.  Massachusetts in 1907 authorized savings banks to sell insurance and old-age pensions to those who applied.  An increasing number of corporations, especially railroads, are adopting a pension system for men growing old in their service, but nothing has been done of a general public nature toward compulsory and universal protection against these misfortunes.

The following table shows the situation in some of the leading countries: 

  OLD AGE AND INVALIDITY PENSIONS

  Voluntary.

  Belgium, 1850, 1903 (voluntary except for miners).

  Italy, 1898, 1907 (all wage earners).

  Compulsory.

  Belgium, for miners, 1868.

  Germany, 1889, 1899, 1911.

  Austria, 1889 (miners only); 1906 (office employees).

  Denmark, 1891, 1908 (noncontributory).

France, for seamen 1850, 1881; for miners, 1894, 1905, 1907 (noncontributory, all indigent citizens); 1910 (contributory, all workmen and employees; was voluntary by laws 1850, 1886).

  Great Britain, 1908 (noncontributory, old age pensions,
  granted by the government).

  Sweden, 1913 (universal, contributory).

Sec. 12. #Unemployment insurance#.  The most difficult of all the problems of insurance is that of unemployment.  There the amount of the risk in any case is so largely dependent on the personal qualities of the worker.  There are obvious objections to making the competent, steady, sober members of any trade bear the burden of the infirmities of their fellows.  But, on the other hand, as we have seen,[4] a large part of the problem of unemployment is chargeable to social maladjustments rather than to individual faults.