On The Nature Of The Social Security System And Its Impact On Economic Development

Social pension insurance, Unemployment insurance and medical social insurance are the most important contents of social security system and they are all the forms of investment on human capital,so the social security system should be regarded as the basic form of investment on human capital. Social pension insurance is the reasonable result as the investment on human capital is socialized . As the paramount investment on human capital, the primar education and secordary education should be absorbed into the social security system in order to improve the connection between education and employment.Competitive power is reducing by the high rate of social insurance fund pooled from enterprise. The contradiction that extreme high level of social security and the low population rate under social security system exist in China at the same time.makes it very diffcult to enlarge the rate.The theory of Precautionary Savings and Hypothesis of Liqulity constraints belive that the improvment of social security system is slower than the economic development. The future Uncertainty leads to high saving ratio and low consumption ratio.Interest rate has no impact on adjusting the savings in recent years.High saving ratio may cause some ecnomic risks.The successful reform in mortgage security system is promoting the development of Chinese real asset market.lt is very crucial to prevent it from bubbjing up in real asset market.Drown from the discussion on Preto Efficiency of Pay-as-yoy-go and Funding Scheme and the reality of China in recent years.This article is concluded with the results that it is not probable or realistic to change the social pension insurance from Pay-as-yoy-go to Funding Scheme.The funds of social insurance have many influences on capital market.The safty of funds is crucial.