The Choice Of Investment Direction Of The Financial Crisis, The Social Security Fund Industry Input-output Analysis

The international financial crisis started from 2008 has affected the economic life of countries all over the world in varying degrees. The impacts on employment and social security funds are particularly evident. In China, the urban unemployment rate of 2008 was 9.4%, which exceeded the international warning line of 7%. Mass unemployment will lead to a decrease of social security payment and also a sharp increase of spending on unemployment insurance and social assistance, which have a severe impact on the normal running of social security funds. What's more, the collapse of stock markets in which the social security funds and corporate pension invest pushes them seriously into deficit. It is a consensus of the world to invest in infrastructure construction and industry so as to promote employment and to stimulate economic recovery. And China has unveiled stimulus package for 10 sectors. As China's important strategic reserve fund, the national social security fund should modify its investment direction aiming some proper targets. This paper is to do some research on the social security funds'investment direction by using input-output analysis method of industrial economics to com up with ways to get the most social out put from the limited input.The first chapter of introduction to the main topics of the article describes the background, meaning, an overview of researches in this field, and the concept of the subject-social security fund and the research methods-the input-output method, as well as the three innovation points of the article. Then based on the definition of social security fund and related concepts, chapter two defines several industrial investment channels of social security funds and also measures their feasibility by doing the risk-return analysis. Chapter three describes the investment status of social security funds at home and abroad. In this chapter, the writer also defines the funds amount which can be used for industrial investment, according to the related laws and regulations in our country. Chapter four summarizes and estimates the unemployment status at home and abroad and the loss of social security funds in this financial crisis. In addition, there is an introduction to the response measures to promote employment in countries around the world. By using the input-output method, the last chapter analysis the industrial investment direction of social security funds of our country and its possible role in promoting the employment. And in the end of this chapter, combining relevant experience abroad, the writer sums up the short-term and long-term strategies of social security funds'industrial investment.