New Welfare Economy

A review of the welfare economy finds that seven Nobel Laureates recommend a tax system with negative income. The size, entitlement to, meeting out, and finance of universal basic income (UBI) are concluded in accordance with other social security legislation. Further, New Public Management 2.0 is outlined. It also includes national accountancy with multinational companies. The final section presents a COVID-19-based index on social vulnerability that reveals serious limitations to deal with the climate threat in a majority of G7 countries in contrast to the excellent coping with COVID-19 of the larger Asian economies.

Will Ending the One-Child Policy and Raising the Retirement Age Enhance the Sustainability of China’s Basic Pension System?

The sustainability of China’s Basic Pension System (CBPS) has been challenged by the ageing of the population and the decline in economic growth. This article establishes a Markov model for CBPS to examine whether the reforms, including ending the one-child policy and raising retirement the age, will shrink the negative income–expenditure gap. We find that the negative income–expenditure gap will destroy CBPS in the future in the absence of fiscal transfer or reform. Ending the one-child policy will increase the number of contributors and then reduce the gap in the short term but will worsen the gap in the long term. Raising the retirement age will have several positive effects overall while increasing expenditures in certain periods. The contributions of this article are describing CBPS in detail and establishing a precise model to analyze the effectiveness of reforms.