A response to my ‘National Insurance Fraud’ breakdown of the NI system that a received on the thinkfreeforums.org website a week or two back;
The National Insurance system (like all Social Insurance systems in the world) are directly modeled after the Limited Liability insurance system(s) created by governments regulating merchant companies in the 1800s to encourge shipping overseas due to the many shipwrecks that plagued the merchants in those days (and still kind of do, to some extent).
Everyone would make a “contribution” into a pool that was used for when a ship suffered wreck and had to jettison cargo (or abandon ship) to save the ship. If a wreck occurred, all those merchants who suffered no loss (cargo was not jettisoned or ship damaged) would make the contribution to help those that did.
The limitation of liability was “limited” to the value of the cargo/ship after it was abandoned/lost; so, this is what determined the amount of contribution necessary after an assessment.
Nowadays, the value of everything is in the negative (debt-based currency valuation), so everyone is constantly suffering a loss (due to fraud and inflation on top of it); so, everyone makes a contribution for the benefit of everyone else called “income taxes”. Since they have no idea who needs a “bailout” due to loss, you have to make a claim for it called a “Tax Return”, where a portion of everyone’s contribution is “returned” to you to cover your “loss”: this is called a “benefit” nowadays. They use different terms in different countries, but it’s all the same.
Since this system is operating in maritime/admiralty jurisdiction, everyone is recognized as a “vessel” (a CRA and former IRS auditor told me this to my face). This is where military honour/dishonour comes in and ties into contracting and negotiable instruments. Dishonour amounts to a “liquidation” of the dishonourable party as a result of it, due to the National bankruptcy(ies).
I can say this is indeed an interesting area of research.