American Old Age Security And Economic Development

American Old Age Security System is defined as a security-oriented system comprised with Social Security and Medical Insurance. With inborn economic motives, American Old Age Security has kept improving its economic functions throughout the embryo age, the birth and development periods. Nevertheless, certain factors, specified as societal and economic being play decisive role in its forms of existence.New Institutional Economics and its Institutional Change Theory provide theoretical backup for the economic growth prompting measures, which Old Age Security designing and reforms. Although economic growth is largely tied up with economic development, it needs to be upgraded to the latter. As a qualitative ascendance, the economic development is marked as the final goal of Old Age Security.Empirically, American Old Age Security worked as a subsidiary part of government's economic policy packages. Whenever governments adapt the economic development as the goal, Old Age Security backed it up and benefited from its success; whenever government chose the short-run growth as target, the long-run economic development would be undermined even the short-run target is achieved.Due to the similarities on Old Age Security between both countries, China can learn from the U.S. on its successes and lessons. With careful adoptions, these illuminations could play positive role on China's Old Age Security reforms.