Is it true that Social Security was originally just a retirement program?
This question often lingers on everyone’s mind. Was this program started to solely address retirement? What has the program done to change over the years do address more issues that face citizens?
It is true that in 1935 a law was passed to establish Social Security and under this law Social Security was being created as a retirement plan. For the most part what the law did was provide retirement benefits to the primary worker that was retiring. In 1939, this began to change when the law was amended and adjusted to also included survivor benefits, as well as additional benefits for the spouse and children of the retiree that was initially covered under the original Social Security law. In the year l956, Social Security was further expanded, yet again. This time it was to aid and support the disabled. This was done with the addition of Social Security disability benefits. The Social Security act was originally much larger of a topic than just the program that we have today that we all know of as “Social Security.” The initial 1935 law included the first compensation program for unemployment on a national level. This law also added aid to the states for numerous health and well being programs, such as welfare. The act also attempted to help the stated by establishing the Aid to Dependant Children program under it.
It’s amazing to see how far Social Security has come over the history of the United States, but we all have to hope that Social Security continues to expand creating better programs and does not fall dormant.
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.
