What is the Social Security Act?
Following the horrific Great Depression of the 1930s, President Franklin D. Roosevelt announced to Congress his intention to create a social security program. The year was June 8, 1934. Roosevelt developed a Committee on Economic Security. Their charge was to study economic security and come up with recommendations. Based on that group’s findings, the Social Security Act was signed into law on August 14, 1935. Besides providing general welfare for citizens, it provided social insurance for retired persons over the age of 65.
Initially, the Social Security Act was created to aid retired workers. Today, through amendments to the Act, the goal of the program has expanded. Individuals in the United States may now apply for financial assistance during times of unemployment, illness, disability in addition to old age benefits. The families of deceased persons can also receive financial aid upon the death of their loved ones.
When the act was first passed, individuals, through work, could acquire credits that would go towards their retirement insurance. Their payroll taxes would help foot the bill. Four years after the initial law was passed and put into effect, in 1939, the first amendment to the Social Security Act was enacted. Spouses and the children of retired workers could now receive benefits and monies. This group could also collect money in the event of the premature death of a working spouse or parent.
The original Social Security payments were paid out in lump sums. It wasn’t until the 1940s when the government began to issue checks monthly. This payment schedule is the same one that is used presently.
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