Social Security Systems and Welfare State Models

Social Security and Citizen Protection

Social Security is the protection that a society provides to all its citizens so that they can develop their personalities through education. It must guarantee that they can live a safe and healthy life through healthcare. It must also guarantee that a person can still receive money if they lose their job (income during unemployment) and receive financial support during periods of need, such as sickness or retirement.

Everyone, as a member of society, has the right to social security provided by the State (government) and international cooperation.

Types of Pensions and Benefits

• Disability pension: Provided when you have had an accident at work and can no longer work.
• Paternity/maternity pay: Provided when you have a child.
• Retirement pension: Provided for those who have retired.
• Sick pay: Provided when you have an illness and cannot work.
• Unemployment benefit: Provided when you are out of work or unemployed.
• Widow’s pension: Provided to a surviving spouse.

Tax Fraud and Its Various Forms

Tax fraud consists of not paying the government (town council, provincial government, etc.) the taxes corresponding to the income or benefit obtained during a certain period. Tax fraud can take many forms:

• Tax evasion: This consists of concealing income (either in the same country or in another country, normally in so-called “tax havens”). It can also consist of not declaring an increase in assets.
• Underground economy: This consists of performing economic activities outside the official system of the tax office.
• Applying false deductions: This involves submitting false documents when presenting tax returns to pay fewer taxes.

Welfare and Social Support Institutions

Welfare means that people can have a minimum level of education, health, and finance, even in negative circumstances such as sickness, retirement, disability, or unemployment. In order to maintain this well-being, different types of institutions provide social and economic support, especially during difficult times.

Social Democratic Welfare State (Spain)

• Citizens are offered health, education, and employment.
• The aim is to reduce inequalities.
• Focus on equality and social protection of the citizens.
• All basic needs are covered by public institutions.
• The state plays a major role in the economy.

The Liberal State (U.S.A.)

• The state does not intervene in economic activities.
• The state does not guarantee workers' rights (holidays, compensation, etc.).
• There is no minimum wage.
• There is no public health system or any security system managed by the state.
• The differences between rich and poor are huge.
• A free economy based on the law of supply and demand.

The Communist State (Cuba)

• There is no private ownership.
• It aims to guarantee equality for all citizens.
• The country’s means of production and natural resources are publicly owned and controlled by the government.
• All profits originated from work are not for factory owners; they are distributed among citizens.
• The state controls everything and provides basic services such as food, education, and healthcare.