^72:5.3 ¶ These people have recently developed new techniques for the adjustment of industrial misunderstandings and for the correction of economic abuses which are marked improvements over their older methods of settling such problems. Violence has been outlawed as a procedure in adjusting either personal or industrial differences. Wages, profits, and other economic problems are not rigidly regulated, but they are in general controlled by the industrial legislatures, while all disputes arising out of industry are passed upon by the industrial courts.

^72:5.4 The industrial courts are only 30 years old but are functioning very satisfactorily. The most recent development provides that hereafter the industrial courts shall recognize legal compensation as falling in 3 divisions:

^72:5.5 1. Legal rates of interest on invested capital.

^72:5.6 2. Reasonable salary for skill employed in industrial operations.

^72:5.7 3. Fair and equitable wages for labour.

^72:5.8 ¶ These shall first be met in accordance with contract, or in the face of decreased earnings they shall share proportionally in transient reduction. And thereafter all earnings in excess of these fixed charges shall be regarded as dividends and shall be prorated to all 3 divisions: capital, skill, and labour.

^72:5.9 ¶ Every 10 years the regional executives adjust and decree the lawful hours of daily gainful toil. Industry now operates on a 5-day week, working 4 and playing 1. These people labour 6 hours each working day and, like students, 9 months in the year of 10. Vacation is usually spent in travel, and new methods of transportation having been so recently developed, the whole nation is travel bent. The climate favours travel about 8 months in the year, and they are making the most of their opportunities.

^72:5.10 ¶ 200 years ago the profit motive was wholly dominant in industry, but today it is being rapidly displaced by other and higher driving forces. Competition is keen on this continent, but much of it has been transferred from industry to play, skill, scientific achievement, and intellectual attainment. It is most active in social service and governmental loyalty. Among this people public service is rapidly becoming the chief goal of ambition. The richest man on the continent works 6 hours a day in the office of his machine shop and then hastens over to the local branch of the school of statesmanship, where he seeks to qualify for public service.

^72:5.11 Labour is becoming more honourable on this continent, and all able-bodied citizens over 18 work either at home and on farms, at some recognized industry, on the public works where the temporarily unemployed are absorbed, or else in the corps of compulsory labourers in the mines.

^72:5.12 These people are also beginning to foster a new form of social disgust — disgust for both idleness and unearned wealth. Slowly but certainly they are conquering their machines. Once they, too, struggled for political liberty and subsequently for economic freedom. Now are they entering upon the enjoyment of both while in addition they are beginning to appreciate their well-earned leisure, which can be devoted to increased self-realization.

6. OLD-AGE INSURANCE

^72:6.1 This nation is making a determined effort to replace the self-respect-destroying type of charity by dignified government-insurance guarantees of security in old age. This nation provides every child an education and every man a job; therefore can it successfully carry out such an insurance scheme for the protection of the infirm and aged.

^72:6.2 Among this people all persons must retire from gainful pursuit at 65 unless they secure a permit from the state labour commissioner which will entitle them to remain at work until the age of 70. This age limit does not apply to government servants or philosophers. The physically disabled or permanently crippled can be placed on the retired list at any age by court order countersigned by the pension commissioner of the regional government.

^72:6.3 ¶ The funds for old-age pensions are derived from 4 sources:

^72:6.4 1. One day’s earnings each month are requisitioned by the federal government for this purpose, and in this country everybody works.

^72:6.5 2. Bequests — many wealthy citizens leave funds for this purpose.

^72:6.6 3. The earnings of compulsory labour in the state mines. After the conscript workers support themselves and set aside their own retirement contributions, all excess profits on their labour are turned over to this pension fund.

^72:6.7 4. The income from natural resources. All natural wealth on the continent is held as a social trust by the federal government, and the income therefrom is utilized for social purposes, such as disease prevention, education of geniuses, and expenses of especially promising individuals in the statesmanship schools. 50% of the income from natural resources goes to the old-age pension fund.

^72:6.8 ¶ Although state and regional actuarial foundations supply many forms of protective insurance, old-age pensions are solely administered by the federal government through the 10 regional departments.

^72:6.9 These government funds have long been honestly administered. Next to treason and murder, the heaviest penalties meted out by the courts are attached to betrayal of public trust. Social and political disloyalty are now looked upon as being the most heinous of all crimes.

7. TAXATION

^72:7.1 The federal government is paternalistic only in the administration of old-age pensions and in the fostering of genius and creative originality; the state governments are slightly more concerned with the individual citizen, while the local governments are much more paternalistic or socialistic. The city (or some subdivision thereof) concerns itself with such matters as health, sanitation, building regulations, beautification, water supply, lighting, heating, recreation, music, and communication.

^72:7.2 In all industry first attention is paid to health; certain phases of physical well-being are regarded as industrial and community prerogatives, but individual and family health problems are matters of personal concern only. In medicine, as in all other purely personal matters, it is increasingly the plan of government to refrain from interfering.

^72:7.3 ¶ Cities have no taxing power, neither can they go in debt. They receive per capita allowances from the state treasury and must supplement such revenue from the earnings of their socialistic enterprises and by licensing various commercial activities.

^72:7.4 The rapid-transit facilities, which make it practical greatly to extend the city boundaries, are under municipal control. The city fire departments are supported by the fire-prevention and insurance foundations, and all buildings, in city or country, are fireproof — have been for over 75 years.

^72:7.5 There are no municipally appointed peace officers; the police forces are maintained by the state governments. This department is recruited almost entirely from the unmarried men between 25 and 50. Most of the states assess a rather heavy bachelor tax, which is remitted to all men joining the state police. In the average state the police force is now only 1/10 as large as it was 50 years ago.

^72:7.6 ¶ There is little or no uniformity among the taxation schemes of the 100 comparatively free and sovereign states as economic and other conditions vary greatly in different sections of the continent. Every state has 10 basic constitutional provisions which cannot be modified except by consent of the federal supreme court, and one of these articles prevents levying a tax of more than 1% on the value of any property in any one year, homesites, whether in city or country, being exempted.