Unpacking the Social Security Act
This week marks the 90th anniversary of President Franklin D. Roosevelt’s signing of the Social Security Act. This landmark piece of legislation established our country’s system of social insurance and welfare programs, providing retirement income, unemployment insurance, and aid to the disabled, blind, and dependent children.
According to an article by the National Archives, before the 1930s, “support for the elderly was a matter of local, state, and family concern rather than a federal concern (except for veterans’ pensions). However, that changed following the Great Depression, which caused widespread suffering, especially amongst the elderly.
In January 1935, President Roosevelt asked Congress to draft legislation to create a national old-age insurance system. After much deliberation and compromise, on August 15, 1935, he officially signed the Social Security Act into law.
Unlike other nations, this law was uniquely American. According to the article, “U.S. social security ‘insurance’ was supported from ‘contributions’ in the form of taxes on individuals’ wages and employers’ payrolls rather than directly from government funds.” It also included financial support for children, the blind, and the unemployed.
It’s been 90 years since Social Security started, and millions of Americans now count on this critical program. But it is facing insolvency and could be forced to cut benefits in the coming years. That is not what FDR envisioned when he established Social Security to help protect seniors.
The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.
