Social Security Act (1935-present)
Summary |
The Social Security Act of 1935 is one of the most important pieces of legislation in American history. It created a variety of programs to serve many groups of citizens. It was intended to pay retired workers age 65 or older a continuing income after retirement. It has long remained a pillar of the "New Deal Order." It was an insurance program based on automatically collected taxes from employees' wages. Its fund was used to make this monthly payment to the 65+ citizens. It also provided for workmen's compensation to disabled, dependent children and their mothers. FDR was actually pressured into passing the Social Security Act by Dr. Townshend and his popular Townsend Plan, yet the SSA remains to be one of the longest lasting New Deal Programs in America.
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Significance Today |
The Act has been amended many times, most notably in 1939 when benefits were extended to surviving spouses or children. In the 1950s, farm workers, self-employed individuals, and domestic workers were added to the Act's coverage umbrella. Later amendments included disables workers, and adjusting the law to current cost-of-living adjustments. In 2000, the last major change was made; the "means test" for older Americans was removed, allowing for older folk to collect Social Security regardless of their income. This Act notoriously gives the federal government more power, which is why it can be controversial. In terms of today, the Act is accompanied with an upcoming major concern: the baby boomers. As the lifespans in America are increasing and the bulging baby boomers population reaches its elderly cohort, there are concerns that the Act will not be able to sustain such a large percentage of the population. It may need to be rewritten or modified to adjust to the changing American demographics.
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