When Franklin D Roosevelt signed the Social Security Bill into law he protected the people from being broke. Starting from the end of WWI, American society was reliant on stock and the stock market. When the Great Depression hit, most Americans lost their money and reached an all time high for unemployment rates. National income dropped about 40% and per capita by 20%. A vast amount of old-age people were literally left penniless. Houses for the poor and other relief agencies existed to assist people who had fallen and need help getting back up. Charities and local funds were the main finance sources for the people. By 1935, more than 30 states have pensions for the needy. State and goverment spent more than 31 million dollars per year, and about an average of 20$ a month per person. As the depression got worse, the funds had to be cut back. The Townsend Old-Age Revolving Pension Plan as well as a plan by Huey Long called "Share the Wealth" gained massive attention as people saw the politicians addressing big problems of the people. The Townsend plan gave everyone over 60 a monthly pension if they didnt have any work and would spend the pension in a month. Under Long's plan, personal fortunes would be given as pensions and cash payments to families in need.
The Social Security Act was a new federally administered system of social security for the aged and people would get a retirement payment if they worked. Following this, there were the 1939 benefits which made basic changes to the system of social security by establishing Old-Age and Survivor Insurance Trust Funds. Funds became Pay as you go instead of accumulations. Nevertheless, beginning from 200000 beneficiaries from the end of 1940's to more than 3 million by the end of 1950. This system still exists today and is one of the main and most important identies that every American has. Retirement funds as well as relief agencies still exist today and are a result of the Social Security Bill set in law in 1935 by Franklin Roosevelt. Although we are already out of the depression. social security is still important and is a backup fund for if anything goes wrong. Today, more than 37 million people get social security benefits and covers more than 95% of the jobs in our economy.
This bill is a good example of how FDR's policies still hold true today. Social Security was and still is an important measure that applies to nearly every American.
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