The function of social security

The fundamental principle of social security is social equity, and social security is the maximization of the utility of all social members. The social security system is the "propeller" of social and economic development, the "regulator" of realizing social equity and the "stabilizer" of maintaining social stability.

The social security system can provide a good social environment and guarantee conditions for the normal operation of the market economy. This is because the market economy follows the requirements of the law of value. Due to the law of value and the role of market mechanism, on the one hand, it promotes the improvement of economic benefits and the development of production, on the other hand, it will lead to a big gap in income distribution. Some people have a high income and a rich life, while others have a low income and fall into poverty. At the same time, due to the competition law of survival of the fittest, some enterprises went bankrupt, workers lost their jobs, and some people fell into the predicament of no life. It can be seen that the market economy is inclined to efficiency spontaneously, and it is impossible to realize social fair distribution spontaneously. Unfair income distribution is a hidden danger of social instability. Establishing and perfecting the social security system under the condition of market economy and giving consideration to social equity through income redistribution can play a role in maintaining social stability and security and provide guarantee for reform and development.

Social security system can disperse all kinds of risks that workers may encounter, and also make up for the defects of market economy. In addition, under the condition of market economy, labor force, as the main factor of production, needs to flow reasonably among enterprises with different ownership in different regions. If there is no socialized social security system to provide workers with pension, medical care and unemployment protection, the labor force will not be able to flow and the rational allocation of labor resources will be difficult to achieve. Establishing and perfecting the social security system is conducive to ensuring that the labor force enters the market on an equal footing and participates in competition, so that the labor resources can be fully developed and rationally utilized, thus maintaining faster and better economic development.