Millions of unemployed people have applauded the new social insurance bill, due to be debated by Parliament in its current session. The euphoric reaction of these desperate people is mainly inspired by an article in the proposed bill, which recommends the establishment of an Unemployment Fund. According to the unprecedented system, public and private-sector employees will be entitled to financial support from the Unemployment Fund if they are made redundant during tough economic times. But, although this idea has been described as noble and great, this new financial support for low-income people has been met with a lukewarm reception from economists. Sceptics do not rule out the possibility that the proposed fund, once started, might quickly fizzle out, as the would-be beneficiaries are workers whose wages are so small that they won't be able to afford their monthly contributions to the Unemployment Fund. In the meantime, the employer, whether the Government, investors or private-sector managers, will be reluctant to take part, protesting that the proposed Unemployment Fund has become confused with the social insurance system. According to the current Social Insurance Law, the employer and the employee are the major contributors in the social insurance system, which provides retired people with a monthly pension. "The employer will have good reason to ignore the Unemployment Fund, as will his employees who don't earn enough to take part," says one economist. Of course, if the Government decided to increase their salaries, employees would then be able to pay into the proposed fund.
