Society, Social Risks, and Regulation - Essay Example

There is an opinion that society gets what it pays for and the cost of reducing social risk is regulation, leading to higher taxes and higher prices. It is with the help of tax payments that social protection through the redistribution of social resources becomes possible. However, those who complain that social protection through regulation raises taxes and increases prices should remember that nobody is secured from various social risks, and it is through effective redistribution of social resources that individuals can insure themselves from existing and future social risks.

Social protection encompasses a series of public measures intended to reduce social risks and enhance the income security of individuals (Holzmann & Jorgensen, 2000). Social protection measures rely on the payments provided by taxpayers to the state budget; in other words, it is through the reallocation of limited social resources that social protection through regulation becomes possible. It is no wonder that not all taxpayers agree with the way social protection measures are provided to vulnerable populations. However, all taxpayers should remember that they are not secured from the existing and emerging social risks (Holzmann & Jorgensen, 2000). Recent financial crises have shown that when social protection programs are not in place, individuals become extremely susceptible to the consequences of reduced GDP (Holzmann & Jorgensen, 2000). To a large extent, the presence of extensive social protection systems is both necessary and inevitable for any state or society that considers itself developed.

Not all people realize the principle of society-state relations. It is possible to say that society gets what it pays for, and the cost of reducing social risks is regulation, leading to higher taxes and increased prices. The latter are inevitable components of the social protection systems in the developed world. It is a reflection of the ongoing tension between the need for social protection and the overall non-affordability of these systems (Holzmann & Jorgensen, 2000). Whether or not developed society can reduce these tensions is still unclear and it can’t even be forecasted if we should expect some positive changes in the future. Most probably, societies will have to reconcile with the costs of providing social protection, which include but are not limited to increased taxes and prices. However, the discussed tensions also demand the development of new systems, which will deal with the causes, not symptoms, of poverty and the social incapability of those who cannot participate in the labor market and other social processes in their native countries.