PARKER, J. S. Social Security Reserves. Pp. xvi, 340. Washington: American Council on Public Affairs, 1942. Paper Ed.: $3.00; Cloth Ed.: $3.50

• DOI: 10.1177/000271624222400163
• Date: 01 November 1942
• Author: Robert W. Kelso
• Published date: 01 November 1942
• Subject Matter: Articles

222

contributions,

which

are

addressed

to

the

general

public

rather

than

to

specialists,

are

popular

social

science

of

the

highest

type.

Here

we

have

a

kind

of

&dquo;war

eco-

nomics

without

fable,&dquo;

which

without

pre-

tension

explodes

many

popular

prejudices

and

fallacies.

A

serial

reprint

of

some

of

the

contributions

would

be

an

asset

of

many

an

editorial

page.

In

the

introductory

chapter,

which

covers

approximately

one-fourth

of

the

book,

John

U.

Nef

analyzes

the

relationship

between

warfare

and

industrial

progress

in

the

six-

teenth

and

early

seventieth

centuries.

He

demonstrates

that

warfare

is

not

a

leading

cause

of

modern

large-scale

mechanized

in-

dustry

(Sombart’s

thesis),

and

explains

both

large-scale

mechanized

war

and

large-

scale

mechanized

industry

as

a

product

of

other

forces,

in

the

main

of

expansive

tend-

encies

manifested

by

the

peoples

of

the

Western

world.

Chester

W.

Wright

then

draws

a

number

of

important

economic

lessons

from

the

history

of

this

country’s

three

major

wars.

His

observations

illustrate

the

difficulties

inherent

in

organizing

a

democratic

com-

monwealth

for

war

and

destruction.

With

respect

to

postwar

readjustments,

he

points

out

that

in

the

past

afllicted

groups

often

were

granted

benefits,

including

tariffs,

which

were

retained

long

after

the

emer-

gency

had

passed.

Simeon

E.

Leland

reports

the

various

steps

taken

in

financing

the

war

since

1940

and

discusses

fiscal

policies

designed

to

check

inflation.

While

skeptical

with

re-

spect

to

selective

excises,

he

recognizes

the

propriety

of

a

substantial

retail

sales

tax

during

boom

periods.

In

his

view,

high

taxes

are

better

than

compulsory

loans.

The

subject

of

price

controls

is

taken

up

by

Theodore

O.

Yntema.

As

he

points

out,

prices

have

risen

less

during

this

war

than

they

did

during

the

previous

one,

because

there

is

better

understanding

of

the

eco-

nomics

of

inflation

and

consequently

there

are

better

fiscal

measures

and

price

controls

in

operation.

In

a

chapter

entitled

&dquo;The

War

State,&dquo;

William

F.

Ogburn

presents

an

over-all

view

of

the

transformation

that

takes

place

in

economic

and

governmental institutions

in

wartime.

The

two

concluding

chapters

are

the

most

interesting

part

of

the

volume.

In

the

one,

entitled

&dquo;The

War

and

the

Crisis

of

Individualism,&dquo;

Frank

H.

Knight,

as

brilliant

and

profound

as

ever,

makes

a

plea

for

the

restoration

of

individualism

after

the

war.

Unfortunately,

modern

war

is

to

a

very

large

extent

a

totalitarian

job,

and

&dquo;there

is

a

grave

danger

that

the

end

of

military

power,

which

must

dominate

any

society

at

war,

will

be

confused

with

the

ideals

of

free

life,

individual

develop-

ment,

and

self-realization.&dquo;

This

then

leads

to

the

last

chapter,

in

which

Moritz

J.

Bonn

comments

wisely

and

cautiously

on

&dquo;The

Structure

of

Future

Society.&dquo;

HENRY

W.

SPIEGEL

Duquesne

University

PARKER,

J.

S.

Social

Security

Reserves.

Pp.

xvi,

340.

Washington:

American

Council

on

Public

Affairs,

1942.

Paper

Ed.:

$3.00;

Cloth

Ed.:

$3.50.

Professor

Parker

presents

this

study

at

the

moment

when

the

American

mind

ap-

pears

to

have

lapsed

into

a

permanent

fog

regarding

the

meaning

of

social

security

reserves.

By

a

process

of

thorough

analy-

sis

he

steers

between

the

conflicting

con-

tentions

of

various

factions,

presenting

the

&dquo;pay-as-you-go&dquo;

program

in

its

real

light

as

an

&dquo;owe-as-we-go&dquo;

plan.

He

wards

off

the

fear

of

large

reserves

by

revealing

its

basis

in

the

deep-seated

distrust

of

con-

gressional

judgment

as

to

the

trust

nature

and

the

proper

use

of

such

a

vast

sum

of

money.

The

work

is

at

the

same

time

an

analysis

and

a

warning.

It

points

out

with

satisfy-

ing

clarity

the

true

meaning

of

an

actuarial

reserve-the

difference

between

the

present

value

of

premiums

to

be

received

in

the

future

and

the

present

value

of

the

prom-

ised

benefit-and

prophesies

the

disastrous

deficit

that

is

bound

to

ensue

when

present

promises

have

to

be

met

by

benefit

pay-

ments

far

exceeding

pay-roll

taxes.

Our

program

of

social

insurance

as

now

opera-

tive

gives

to

its

prospective

beneficiaries

the

warm

glow

of

a

feeling

of

some

security

for

their

old

age,

but

leaves

future

genera-

tions

to

pay

the

bill

out

of

general

taxes,

gleaned

mostly

from

those

who

can

take

no

benefit

under

the

program.

The

Con-

at SAGE PUBLICATIONS on December 4, 2012ann.sagepub.comDownloaded from