Econoic bases of the wisconsin unemployment reserves act

Part of the cost of unemployment should be assessed to specific industrial c cerns rather than to the community as a whole. Unless this be done the con is unable to choose low-cost products and concerns, since prices will not reflect a of the social costs. When social costs reasonably attributed to one producer shifted to another, unfair competition results. Technological changes should car their own costs, since decisions as to their practicability will be affected thereby. In answer to the charge that the Wisconsin Unemployment Reserve act pre vides inadequate relief, it may be said that all labor legislation starts with inadequate protection, and a particular state can raise its standard as other states create or raise theirs. Even though the financial incentive to regularization under an unemployment re serve act may be small, it may be an effective stimulus to the psychology of busines men. Moreover small incentives are frequently sufficient to change the balance is close decisions of business policy. Important achievements have been made in the prevention of unemployment, and a universal attack upon the problem might prore more than proportionately effective. The enactment of the N.R.A. does not outmode unemployment reserve legislation and is entirely consistent with such legislation.