Welfare directly affects the accumulation,affecting innovation and upgrading of economic structure. A society shouldraise the level of consumption and implement high welfare on the premise thatit is necessary to raise the level of production. The production here is not asimple reproduction but an expansion of reproduction. Nor is it a mereexpansion of production scale, but an expansion of reproduction throughtechnological innovation and upgrading of industrial structure. Such expandedreproduction has no borders and can provide a steady flow of consumerinformation. And such an enlarged reproduction necessarily requires an increasein the organic composition of capital and must be sufficiently accumulated.
High welfare hinders economic development one of the reasons.High welfare is prone to moral calamity,resulting in the waste of social resources and national inertia. The highwelfare provided by the state is a kind of public goods, which, like the bigpot of rice under the planned economic system, does not eat or eat withouteating, thus laying down moral calamity. The concrete manifestation is thatunder the high welfare, the utilization rate of social security resources isnot high, such as the waste of medicines and other medical resources in publicmedical services;Some people could have been employedinstead of being actively employed, over enjoying the leisure time brought bysocial security and unemployment insurance, and choosing to retire early;over-reliance on the state, self-accumulation, weakening the enthusiasm andability of self-protection; and so on. Once these phenomena are universal, thesocial resources are seriously wasted and the national spirit is no longerpositive, it will affect economic development.
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