Social Security Challenges (poverty, Unemployment and InCome Inequality)
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Definition of concept ( Economic inequality , Poverty and Unemployment)
(1) Economic inequality: It is the difference found in various measures of economic well-being among individuals in a group and among group in population.
(2) Poverty : It is a state or a condition in which a person or community lacks the financial resources and essentials to enjoy minimum standards of life and
well-being thats concidered acceptable in a society.
(3) Unemployment: This state refers to individuals who desire employment but cannot find a job to meet their basic needs.
The causes of the social security challenges in South Africa
(1) Economic inequality
(a) Education : Education is seen as a key to higher income, for instance those who are unable to afford an education or choose not to persue optional
education and generally receive much lower income (this refers to that lack of education leads to low income).
(b) Labour Markets : A major cause of economic inequality within the market economies is the determination of wages by the market. where the competition
is imperfect, information unevenly distributed opportunities to good education and skills unequal market failure occure.
(2) Poverty
(a) Unemployment : causes families to live in unhealthy living conditions because of the lack of financial wellness inorder to improve their living conditions.
(b) The lack of access to education : The reason why most individuals, community work in poverty and low-income level employment is simply because
they do not have education and adequate training to get higher paying jobs.
The effects of social security challenges in South Africa
Income inequality
(a) Economic incentives : Economists believe that one of the main reasons that inequality might induce economic incentives is because material well-being and
conspicuous consumption relate to status.
(b) Social culture and civic participation : Higher income inequality led to less of all forms of social, cultural and civic participation among the less wealthy. When inequality is high the poor do not shift to less expensive form of participation.
Poverty : Society many people living in poverty are homeless, which puts them on the streets. There also seems to be a connection between poverty and
crime.
Education: Low literacy rates can affect society in various ways including labour forces and politics. A bad cycle is created , poverty prevents people from
gaining a good/perfect education and not obtaining an education prevents people from escaping poverty.
Unemployment
Standards of living : In times of unemployment the competition for jobs and the negotiation power of the individuals decreases and as a result the living
conditions of people with salary/income reduced as well as the access to proper health institutions i.e proper health care centre.
Government effort in alleviating income inequality,poverty and unemployment
(a)South African National plan seeks to eliminate poverty by 2030 by drawing up on the energies of the countrys people, growing on inclusive economy, enhancing the capacity of the state and promoting leadership , partnership throughout society.
(b) This emphasis the need for a strategy and its impacts by broadening access to employment , strengthening the social wage and raising rural income (Grants).
(c) Bringing about faster economic growth , higher investment and greater labour absorption in order to eliminate poverty.
(d) Improving the education facilities in rural and township areas as they show a very poor perfomance that leads to drop outs and inferior job opportunities which leads to poverty in a long run.
(e) Improving the quality of education , skills development programmes and innovation as well as introducing