Answer to Question #215026 in Macroeconomics for Lwely

Question

Define social security, critically discuss the effects of social grants on incomes and welfare

Answer 1

Social security can be defined as the protection and wellbeing that a society accords to individuals and households so as to guarantee their access to their social rights such as income security, healthcare etc. Social security is provided in cases such as old age, unemployment, sickness, invalidity, maternity, loss of a breadwinner or work injury. Social grants are a form of social security accorded to deprived individuals or groups or to people vulnerable to poverty in society so as to improve their standards of living. Social grants are an effective tool for reducing income inequality and promoting social welfare.

Social grants increase income levels in society by increasing par capita household income. They form a large part of the income for households living in extreme poverty. In regions such as South Africa, they are the government's largest poverty alleviation and redistribution intervention and raise income levels by redistributing income to poor households.

Social grants increase social welfare in society. They alleviate the high levels of poverty and enhance the wellbeing of various disenfranchised groups in society in areas such as food security, unemployment, vulnerable children, education, mental health care, people and children with disabilities and health care services. They actually increase consumption of basic needs in society such as food and education thus harnessing individual and social wellbeing. For instance, children who are beneficiaries of child support grant enjoy better health, nutrition and schooling.