Social Security Act Of 1935 Flashcards, test questions and answers

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What is Social Security Act Of 1935?

The Social Security Act of 1935 was a landmark piece of legislation that has had an enormous impact on the United States and its citizens. Signed into law by President Franklin D. Roosevelt, the Social Security Act established a system of benefits for retired and disabled Americans, as well as providing unemployment insurance and aid to needy families. The act was designed to provide financial security to those who lost their jobs during the Great Depression, offering them a steady income in retirement or when they became disabled. The Social Security Act created two new programs; Old-Age Insurance (OAI) and Unemployment Insurance (UI). OAI provided benefits to eligible retirees aged 65 or older, while UI offered financial assistance for those who were unemployed due to economic conditions beyond their control. Both programs were funded by payroll taxes from employers and employeesthe first time such taxes had been used in the United States. Initially, the maximum monthly benefit under OAI was set at $85 and there was no limit on how much could be received under UI. In addition to these two programs, the Social Security Act also established Aid to Dependent Children (ADC), which provided financial assistance for single mothers with children under 16 years old. It also included provisions for public health services, including grants to states for medical care, maternal and child welfare services, vocational rehabilitation counseling, mental health services and more. Since its passage in 1935, the Social Security Act has been amended many times over the yearsmost notably with amendments added in 1965 which expanded coverage by expanding eligibility requirements for both OAI and UI programs, increasing monthly benefit amounts significantly (from $85/month up to $1125/month today) as well as creating Medicarewhich provides healthcare coverage for those over 65 years old without private health insurance plans available through employers or unions. Today we can look back at this history-making legislation as an example of how government can intervene on behalf of its citizens when necessaryproviding much needed security during difficult economic times that would otherwise be lacking without federal intervention. Even though it has been amended many times since its introduction almost 85 years ago now it remains one of the most important pieces of legislation enacted in US history–with millions still benefiting from it each year.