This section is from the book "Elementary Economics", by Charles Manfred Thompson. Also available from Amazon: Elementary Economics.
Leaders of American thought have given careful attention to the question of social insurance in the hope of being able to formulate a set of general principles for the guidance of legislatures in enacting workmen's compensation laws. This they have done: the most active group, the American Association for Labor Legislation, has indorsed substantially the following standards:
A. Compensation - Medical attendance.
Two-thirds of regular wages. , $20.00 weekly maximum.
$5.00 weekly minimum.
Funeral expenses.
One-third of wages to widow.
B. Compensation to be the only remedy -
Neither employer nor employee may bring suit under law of negligence.
C. Exemptions from compensation - Farm laborers.
Domestic servants -
Hotels and restaurants excepted.
D. Employers given option as to methods of insurance - Mutual associations.
Stock companies.
State insurance.
E. Compensation laws administered by permanent accident board -
F. Methods of settling claims - Arbitration.
Accident board.
This program is, to say the least, an ambitious one. It has for its end liberality as well as justice. It provides for the injured workman in a way so as not to offend his sense of self-respect; gives employers an opportunity to choose their own insurance plan; and finally, it does away with undue risk, financial uncertainty, and costly litigation.
 
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