Research on the Relationship Between Social Security System and Economic Growth in China
Guest Editor Huier Liu (North China University of Water Resources and Electric Power, China)
n the past, economists generally consider Social Security System as a kind of social equity system, and rarely consider its role on the economic growth. However, Social Security can affect consumer expectations and human capital investment, so it will inevitably have some impact on the economic growth. Starting from Keynes Multiplier Theory, Combing with the human capital investment, this paper analyze the promotion mechanism of social security to economic growth. This paper concludes the government uses the fiscal revenue to increase the investment to the Pension Funds, the revenue will not decrease. It also can be increased slightly through properly handling. In a balanced economy with a reasonable social security system, increasing social security investment will promote economic development in both long-term and short-term. Moreover, increasing input in social security to promote economic growth will be more effective than increasing government public expenditure.
Journal: International Journal of Simulation: Systems, Science & Technology, IJSSST V17
Published: Jan 21, 2016