China And The United States Social Security System, A Comparative Study

After three decades of reform and opening up, China made remarkable achievements. But, with the deepening of reform, China is also faced with unprecedented difficulties and challenges. The differences between incomes are increasing. The Gini coefficient remains high level. Owing to the international financial crisis, the trade friction and unemployment rate are growing, and the domestic demand is withering. These issues will hinder the further development of Chinese economy. The reform of China will be full of risk. The biggest problem of Chinese economy is insufficient domestic demand. The reason is inadequate development of Social Security system. The reform and Chinese people need social security, while the current Social Security system of China can not meet these needs. China should strengthen and improve its Social Security system. With 30 years rapid developing, China is able to develop her Social Security system. In fact, Social Security is a redistribution system of social wealth. Justice is its basic requirement. It's focusing on dealing with the social risks which are faced by low-income people.With 100 years of developing, modern Social Security system has become an indispensable social system in the world. There is no difference in socialistic countries or in capitalistic countries. It is an important symbol of the contemporary development of civilization and social progress. Owing to long history of developing, modern social security system has a lot of experiences and lessons. These can help China to promote its Social Security system. Without sufficient treasure, China can not afford the high level Social Security system that like Nordic welfare state model. Because of the absence of mutual aid and prevalent, China also can not choose the model of Chile and Singapore. In addition, Chile and Singapore have smaller economy and population than that of China. It's not proper to compare the Social Security system between China and these two countries. Given the issues of land area, economy and population, only the United States is close to China. In addition, American social security has lower level than that of Europe developed countries. The model of social security system of USA is more suitable for china. In 1935 the U.S. promulgated "Social Security Act". Then the U.S. established Social Security system throughout the country. After more than 70 years of development, the Social Security system of the U.S. made remarkable achievements and acquired a lot successful experiences and frustrated lessons. China can use these experiences and lessons to build its own social security system. So it is of special significance for china to study the difference between the Social Security system of the United States and that of China.With studying more than 100 years history of modern Social Security system, through learning more than 70 years of history of the Social Security system of the United States and researching on more than 60 years of history of the Social Security system of China, the author of the dissertation seeks the basic principles that the Social Security system should follow. At the same time, the author will compare the basic model, management system, pension system, medical care system, unemployment system, housing system and social assistance system of the Social Security system between U.S. and China. With comparing, the author could study the experiences and lessons. By analyzing these experiences and lessons, the author was able to research the problems in the Social Security system of China. Then the author can suggest some advises for China.On the basis of above comparison, the author put forward some basic principles for China to comply with. First, the development and improvement of the Chinese social security system should follow the general principles. There are equity, protection of basic living, universal and compulsory and so on. Second, the development of the social security system must comply with China's basic national conditions. China should adhere to the policy of "wide coverage, covers basic, multi-level and sustainable". Third, China should handle the relationship between the government and the market properly. The government should make its best to achieve social equity. At the same time China should make full use of the market to improve institutional efficiency. Fourth, China must deal with the relations between the development of economy and that of Social Security system properly. On the one side, China should improve its Social Security system. On the other side, China should avoid over-develop its Social Security system with no regard of its conditions.In compliance with above principles, the author suggests that China's Social Security system should be legislation first. China should enact a comprehensive law, such as "Social Security Act". Then China could make a complete system of Social Security legal system, according to the Social Security Act. Second, in guidance of the laws, the government of China should establish the institution of Social Security system quickly. Then China could improve the level of its Social Security system. Third, to promote China's Social Security system, the author suggests that China should broaden its financing channels. China should impose taxes on Social Security, luxury, inheritance and property. It will strengthen the capabilities of Chinese families to deal with social risks. In addition, the author makes some suggestion for specific projects of Social Security system.