Social insurance in the time of robots
Summary for https://www.brookings.edu/blog/future-development/2018/04/04/social-insurance-in-the-time-of-robots/:
- The first is to eliminate the link between social insurance and employment status and provide a basic and affordable layer of social protection to all citizens, financed by general revenues.
- Social insurance systems financed by payroll taxes created for times of stable employment with one formal employer and a substantial surplus of contributors over beneficiaries have become fiscally and socially unsustainable.
- To support these measures, the mix of social insurance instruments needs to be broadened to include private accounts for pensions, health, and unemployment.
- The link between employment and public insurance through payroll tax financed benefits entails problems for governments, companies and employees.
- For both individuals and companies, the growing wedge between gross wages and take-home pay encourages informality, leaves people without social insurance, and dilutes the social contract.