Social security is a government program, the measures established by the government are to maintain family or individual income. The government took this measure to provide income supports when all the funds or required expenditure is terminating.
For example;
if you need money or financial support to raise your child or health care funds. Social security provides financial supports to that person who faces health issues, disability, jobless, agriculture failure, etc. Social security can be in many ways, it can be cash support to you, direct health support, rehabilitation, and even domestic help.
Then, you should know that social security is provided by the state or local government. A court order can also provide social security to you. For instance; if you had an accident so the court can compensate you by social security. International labor organization implies three basic criteria to define social security that is:
First: the objective or implementation of the system should be to give curative or supportive medical care, provide funds in incase of involuntary loss, provide funds to take care of family responsibilities.
Second: the social security system is implemented by the legislation and then it attributed the right to implement individual rights, implement obligations on someone, making decisions in public, etc.
Third: Moreover, the system implemented by the legislation, must be administering by the public or an autonomous group.
The term social security or the service for social is basically providing support to the health of the public. And then, education, and the service of the house. according to the survey, nearly 140 countries have social security schemes. many countries provide security schemes for work injuries, old-age pensions. unemployment security is also available in many countries.
Social security in economist view:
social security expansion in many countries will likely not spoil the economy of any country. There have been much research and analytics according to the economist. According to them, the tax revenues increased for the services will likely affect the economy of a country because it is still serving the public. following are some research and analytics by economists regarding social security.
Changing longevity:
The social security benefits and can also have potential adjustments. In social security there are two periods of people, for example; if you are old then the system will provide you pensions to fulfill your needs. And if you are an employee and then you require funds to fulfill your health insurance or any other needs. The increase in life expectancy resulted in different levels in which people have different needs and requirements in life.
The implication of low wage growth:
According to the economist, using the lifecycle model the economist came to understand that through this system, there is the implication of low-interest rate and even low wage growth. This creates compensating differences among the revenue. Low returns and low wage growth often is welfare sustainability. economist understands that low economic wage growth is much larger than low individual growth. low returns often create optimal security that claims the age of working longer, while the low wage growth is the marginal advantage of working longer.
Economic and supplement security:
In this, the economist comes through a relationship between economic conditions and the supplement security of income, which is given to jobless people or disabled people. considering our country we have more unemployment than any other country, then the economic support will increase and funds will increase the rate of supply income.
Cash flows and reserves:
Social security is interrelated with cash flows, reserves, and the management of treasury with the federal government. Trust funds and the public play a crucial role in social security. The economist has known the accounting fictions, it has control over social security through finance network. it improves the fund finance that can relieve debt commitments of the federal government.
Social security manages the most popular and other government programs. In fact, social security serves two basic purposes: provide income floor to poverty and replace the income from earlier work. The government doesn’t keep its promises to help people to come out of poverty or people suffering.
But social security does it more efficiently and can achieve more goals through the system. Spending funds from social security always benefit economic activity. it also benefits the business, workers who also benefit from spending through federal, state, or even local taxes.
About The Author
