How Germany Deals with Unemployment

Sun (Auckland), Volume II, Issue 313, 26 March 1928, Page 14

How Germany Deals with Unemployment

INSURANCE SCHEME FULL PAY FOR DISABLED SOLDIERS In two years Germany has reduced the number of her unemployed from 2,000,000 to 500,000. By the scheme of unemployment insurphee every employee in the country is required to give Is a week from lifs -vsrages toward the fund. Men out or work receive the equivalent of 4s a day, and they are required to take whatever opportunity for employment occurs. The scheme also provides for employees who are sick, and many of these are sent to health resorts. Explaining Germany’s methods, Mr. K. Lindhorst, a manufacturer, of Berlin, who arrived in Auckland by the Aorangi yesterday, said: “We are doing one thing in Germany which no other nation involved in the war has thought of. Employers are obliged to employ and pay full wages to one returned soldier who is more than 50 per cent, disabled for every 50 employees they have. It does not matter whether those returned men are able to work or not, they must be given full wages. BIG TAXATION Though taxation amounted to 20 per cent, of one’s salary, there was an optimistic spirit and a keenness to work in post-war Germany. Income, trade and community taxes amounted to £4O of a £2OO salary. Although wages were 50 per cent, higher than before the war, the people had only about half the value of their money/ Mr. Lindhorst, who employs 5,000 in liis factories, fought as a captain on the Russian and Western fronts. He was decorated with the Iron Cross, first class, for bravery, and he was severely wounded. He declared that Germany was sick of wars and uniforms. Since Hindenburg had become president the country had assumed new objects. The president was everywhere accepted as the people’s fridnd. “Germany’s great problem to-day is the money question,” said Mr. Lindhorst. “Money is very scarce. The banks charge 10 per cent, for overdrafts, and only large and well-estab-lished firms are able to borrow money at all. All the ready money goes out of the country in reparations payments. We are hoping, however, that the League of Nations will be able to do something to help us over our troubles.”