The social security systems have had great effects on economic developmentin the western countries. On the one hand, social security creates appropriate environment for economic development, and makes normal labor reproduction possible, and promotes tertiary industry, solves the employment problems and promotes economy. On the another hand, social security increases the expenses of government, leads more and more resources to be used in consumption, and influences capital accumulation, makes the proportion of accumulation founds to consumption founds maladjusted, weakens the driving force for development, therefore blocks economic development. We should recognizes that social security developmentinteracts with the real economic situation.
