equity from one state to another.

Sec. 17. #The contributory principle#. The contributory principle should
be adopted, and both employers and wage-earners contribute to the cost
in equal amounts. But further, the general public interests may
be recognized through the payments in aid of the funds (subsidies,
subventions). Both employers and employees usually seek to escape
the burden, by getting the state to bear the whole expense[5] or by
getting the other party to pay all or the larger part. But it is much
to be desired that in large part the finances of a system of social
insurance should be disassociated from the ordinary budgetary system
of taxation and public expenditures. The fundamental reason why the
premiums should be divided between employers and employees is that
this is most favorable to the equal participation and cooeperative
efforts toward reducing the risk, and developing right industrial
and political relations. Everywhere it is the practice to provide for
representation nearly in proportion to contributions.

It is usually assumed by employers, by wage-workers, and by others in
the discussion of the subject, that the burden remains and is borne by
those who directly pay the premiums, and just in proportion to their
payments. This is an almost utterly mistaken view. There is, on the
contrary, every reason to believe that the general principles of
shifting and incidence of taxation apply fully here.[6] It cannot be
doubted that, if wages are not arbitrarily fixed, if they result, as
we must believe, from an adjustment and equilibrium of the various
classes of labor in a general economic situation, then after a
time the premiums become a part of that general situation. Payments
compulsorily made by employers (by all, without exception) will
ultimately be offset by a lower wage, and if transferred to the
workmen will ultimately be offset by a higher wage. Of course, there
is some delay and friction in making the adjustment, but, under any
settled policy, the adjustment once made will be maintained. The
benefit of social insurance to the workingmen is not mainly that their
wages are increased by the direct contributions of employers to the
premiums, tho there are doubtless some cases of "parasitic" industries
and parasitic employers that escape their due share of payments for
risk, now that there is no insurance system. The great benefits are
that total wages and losses are apportioned economically to th