נ,
•
?
·
cost/price structure, a less efficient adjustment mechanism, probably slower growth rate for the economy and a slower rate of increase in the standard of living for workers.
Serial 13
A Limited Child Benefit Scheme
20.
The French system, on which Professor Turner's proposal
is based appears to be founded on quite different principles of encouraging large families, a consideration that does not apply in Hong Kong.
21.
The question of "forfeited children's earnings" to which Professor Turner refers does not arise in the case of children below
15 with the prohibition against employment connected with compulsory education. Children above this limit and up to 18 (using the French system) who are not at school would most likely be working so that
there is little justification in paying a non-means-tested allowance.
Prima facic, there is no case for a universal child benefit scheme, much less for this liability to be placed on employers, or for requiring
employees without children to subsidise those with children.
Such an
approach would change the present wage structure which is related directly
to pay for the job" and not to family circumstances.
22.
11.
If employers are not to be liable, any benefit would have
to come from general revenue, presumably as part of the social security system. There is much to be said for retaining the existing simplicity
of our social security schemes and avoiding the introduction of a plethora
of allowances which would make administration both cumbersome and
expensive. Moreover, a universal child benefit scheme would be costly,
and would not ensure that the children themselves benefitted from
this allowance.
Serial 14
A Contributory Unemployment and Pensions Scheme
23.
The best way to deal with a situation of mass unemployment
is to try to get everybody back to work, and that means allowing wages to
point when external competitiveness can be regrandd scheme suggested by Professor Turner would prevent this from being achieved. As a consequence, the duration of unemployment would be prolonged and the number of unemployed would, at any time, be higher
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