Importance of Economic and Social Security as explained below:
Economic Security:
Economic security refers to the condition of having stable income (or other resources) to support a standard of living now and in the foreseeable future. It includes the society’s production levels and monetary support for non-working citizens.
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When children’s, adults, and families are safe, healthy, educated and have sufficient money for comfortable living, it means, they are economically secure. International relations between countries are mainly governed by their economic securities.
If a foreign government gets unauthorized access to proprietary information or technology, then the country’s overall economic security is under threat. Economic security of children’s and their parents is indicated by the income level and employment security of their families.
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Economic security of retired people is based on social security benefits, pensions, savings, earnings and employment, and health insurance coverage.
“Economic security can be defined as the condition of an individual, household or community that is able to cover its essential needs (like food, shelter, access to health care, education, etc.) and unavoidable expenditures in a sustainable manner” If essential needs are not covered, a situation of crisis develops.
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The crisis can be of following four types:
Essential needs are still covered, but are at risk of no longer being addressed in pre- crisis. Some essential needs are no longer covered in acute-crisis. Essential needs are insufficiently covered in chronic-crisis. Essential needs are covered by structure whose sustainability remains fragile in post-crisis.
The aim is to save lives in pre-crisis and acute-crisis. The aim is to support livelihoods in chronic-crisis and post-crisis.
Social Security:
“Social security means providing social welfare service to poor, old age, disable, widow, retired, children or unemployed peoples by the society.”
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Negative effects of social security: Social security may discourage people from working and saving to reduce international competitiveness and employment creation. It may also encourage people to take early retirement. Positive economic effects of social security:
(i) It may help to maintain effective demand at the national level.
(ii) It may help create conditions, in which a market economy can flourish, by encouraging workers to accept innovation and change.
(iii) It can help to make people capable of earning an income and to increase their productive potential.