March 29, 2017

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By Richard V. Burkhauser

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On the one hand, we have the concept of freestanding individuals defining by contract their rights and obligations toward one another. But, on the other hand, members of a family live under a set of rights and obligations imposed on them by law and custom and ethics. Hazel Kyrk (1953, p. 17) identified the family as a status system surviving in what is otherwise largely a regime of contract. A pure individualist might assert complete indifference about how people choose to relate themselves to other adults or to children.

Flat benefits for widows and orphans. New Zealand Flat-rate pension for aged couple is 166% of pension for single person. Flat benefits for children. Income-tested benefits for widows and orphans. Sweden Universal old-age pension for aged couple is 160% of pension for single person, with supplements for children and for wife aged 60. Earningsrelated pension has no spouse benefit. Universal survivor benefits for widows and orphans of specified ages. Earningsrelated pensions pay widow 40% and orphans 15% of pension of insured.

This method is followed in public-assistance programs. 3. Contribution-related benefits, wherein loss of income by the contributor is offset without regard to demonstrated need. Examples of this are found in social insurance against accident, unemployment, and disability, and for retirement. However, social insurance benefits are not always related solely to contributions. Some are related both to contributions and to presumed need as indicated by family size. One social insurance program, Medicare, features benefits that do not vary with the level of contribution.

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