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Social Security Systems in the Netherlands From decades social security policies are in question all across the Europe. Moreover, the future expectations of changes
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Submitted by athelas on May 11, 2005
Category: Social Issues
Words: 2471 | Pages: 10
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From decades social security policies are in question all across the Europe. Moreover, the future expectations of changes in the social security systems due to the variations in household structures and ageing of the society bear new social security systems. As most of the European countries the Netherlands, had a substantial growth in the 1960s. After the oil crises, the economy of the Netherlands worsened. Despite the successful creation of a large number of new jobs in the 1980s the growth of unemployment continued and remained persistent in character and still today. However, the social security system in the Netherlands is not alike to the 1970s and 1980s. The Dutch government expenditure on social benefits is characteristic of the well-developed welfare states - at 27.4 percent it is now above the EU average of 22.9 percent. It is among the high taxation countries and over average GDP per capita. Public employment is low and it has one of the lowest poverty rates.
The extraordinary level of economic growth of the 1960s created the economic surplus in the Netherlands but by the world's two oil crisis in the early 1970s the economic climate started to deteriorate. A stunning increase of unemployment in the late 1970s provoked a policy of labor cost reduction and cuts in the social security budget. It was believed that an increase in the real wages and social benefits would imply a further rise of unemployment. Moreover, it was predetermined by the government that the country could only recover from the economic downfall of the 1970s if free entrepreneurship and the functioning of market mechanisms would be restored. Gradually social policy lost its position as a more or less independent domain. It became the servant of economic policy as it was strongly believed that once the aim of a healthy economy was reached, social and economic deprivation would consequently vanish.
In the 1980s the reduction of public expenditures became...
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