This section is from the book "Elementary Economics", by Charles Manfred Thompson. Also available from Amazon: Elementary Economics.
The most difficult of all forms of social insurance to administer is unemployment insurance. Dishonest employees may pretend to be ill or injured only at the risk of having their dishonesty easily detected. In the matter of unemployment, however, the situation is different. No human agency yet devised could successfully distinguish between inability to find work and laziness. For that reason unemployment insurance has lagged behind. In the Belgian city of Ghent, however, the trade unions, assisted by donations from the city treasury, have undertaken to pay small benefits to the unemployed. Since the unions themselves are vitally interested in the money they pay out, abuse of the benefits on the part of the dishonest is reduced to a minimum. Great Britain has undertaken in a much more ambitious way to insure against unemployment. There employment bureaus supported by the state attempt to keep unemployed labor moving in the direction of jobs. Certain trades enjoy special protection against unemployment. In these trades employers must provide each employee with stamped cards, which guarantees, in case of unemployment, a small benefit of $1.75 a week for a maximum of fifteen weeks.
 
Continue to: