The Social Security Act of 1935 is a law enacted by the 74th United States Congress and signed. This Act was signed by US president named Franklin D. Roosevelt. The Social Security Act is a part of Roosevelt’s New Deal domestic program, said Shalom Lamm.
Purpose of the social security ACT:
The Act provided the Social Security program as well as insurance if the US citizen is unemployed.
The onset of the 2oth century and the introduction of industrialization and urbanization resulted in many social problems. The introduction of changes in the society in the US society transformed the community and said that the society and the government shall work together for the benefit of the community.
The US was the only modern industrial country by 1930, in which the US citizens encountered the issue of the depression without any national system of social security.
The Social security Act is funded through the latest introduced payroll tax, later called the Federal Insurance Contributions Act tax. The Act is funded by the taxes of US citizens and businesses. The fund for social security is collected from the job doing or business personals of the states. This tax is not exempted for anyone. Both the employees and the employers are liable to pay the tax so that no one in society is left behind because of their financial conditions.
The collection of the social security taxes was retrograded, and the benefits coming from Social Security were based on how much each person has contributed to the system; the program will not participate in the redistribution of the amount collected in a manner that some activists and improvers as well as Perkins, had hoped.
Besides introducing the program, the Social Security Act also designed a state-administered unemployment insurance system and the Aid to Dependent Children, giving financial help to the families that single mothers lead.
What were the major claws of the Social Security Act 1935?
The U.S. Social Security Act 1935 included: benefits for retirement and survivors of the war, retirement plans, and disability insurance.
The US social security act of that time was a bit conservative if we compare it to other regions like Europe. But it was the first time that the USA federal government took the responsibility of helping out sits old age people, unemployed people, dependent children, and handicapped. The US government took this major step to kick poverty out of the states and provide US citizens at least average living conditions, said Shalom Lamm.
How does the Social security Act helping US citizens?
Today, almost 170 million people who are American citizens or businesses are paying taxes and funding the social security act of the country. At the same time, nearly 65 million people are receiving social security benefits daily. Indeed, American society is surviving with the social security act. The social security act of the country is a major reason behind the controlled rate of crimes or thefts and beggary in the states. In addition, the Act is providing its people protection against possibilities of accidents, health issues, retirement, resignation, retrenchment, maternity, old age, unemployment, death, disablement, and other similar conditions, said Shalom Lamm.
Who is helped by the Social Security Act?
The Social Security Act helps:
- The older Americans- those who are retired and have no source of income.
- Employees or labor who become disabled- the cause of the disability can be anything.
- Wounded warriors,
- Families in which a spouse or parent dies.
- Children below age 18.