Social+Security+Act+of+1935

​ **//__Social Security Act of 1935__//**

QUESTION: What were the effects of the program on the people? ANSWER: The Social Security Act of 1935(referred to now as the federal old-age, survivors, and disability insurance or OASDI) "Encommpassed several social welfare and social insurance programs."The larger and better known programs are:
 * Federal Old Age, Survivors and Disability Insurance
 * Unemployment Benefits
 * Temporary Assistance for Needy Families
 * Health Insurance for Aged and Disabled (Medicare)
 * Supplemental Security Insurance (SSI)
 * Grants to States for Medical Assistance Programs (Medicaid)
 * State Children's Health Insurance Program (SCHIP)

When first being passed, the Social Seurity Act faced controversy, with the point of jobloss being emphasized. Although facing this adversity, the rebuttle to the doubters who oppossed the act was one of significance. An advantage sighted from Social Security would be older workers being encouraged to retire. By older workers retiting, new jobs and different positions become available to younger people and the Unemplyoment rate is cut sharply. Also, Social Security reninforced traditional family views. While men could qualify for Social Security, women generally only qualified for Social Security through their husband or children. The first Social Security check was issued to Ida Fuller of Ludlow, Vermont. In 1937, 1938 and 1939, Fuller invested $24.75 in the Social Security System.Her first check was for $22.54. After her second check, Fuller already had received more than she contributed over the three-year period. She lived to be 100 and collected a total of $22,888.92. From the small steps of this act, now in 2009 nearly 51 million Americans will receive $650 billion in Social Security Benefits.

QUESTION: What were the effects of the program on the economy? ANSWER: Upon examining the Social Security Act of 1935, we find that "the provisions of Social Security have been changing since the 1930s, shifting in response to economic worries as well as concerns over changing gender roles and the position of minorities. Officials have responded more to the concerns of women than those of minority groups. Social Security gradually moved toward universal coverage. By 1950, debates moved away from which occupational groups should be included to how to provide more adequate coverage. Changes in Social Security have reflected a balance between promoting equality and efforts to provide adequate protection." "A proposed change in the 1930's for Social Security was the Social Security Trust Fund. "One reason for the proposed changes in 1939 was a growing concern over the impact that the reserves created by the 1935 act were having on the economy. The Recession of 1937 was blamed on the government, tied to the abrupt decrease in government spending and the $2 billion that had been collected in Social Security taxes. Benefits became available in 1940 instead of 1942 and changes to the benefit formula increased the amount of benefits available to all recipients in the early years of Social Security. These two policies combined to shrink the size of the reserves. The original Act had conceived of the program as paying benefits out of a large reserve. This Act shifted the conception of Social Security into the pay-as-you-go system."The amendments established a trust fund for any surplus funds. The managing trustee of this fund is the Secretary of the Treasury. The money could be invested in both non-marketable and marketable securities." media type="youtube" key="5xaHX5EBwXc" height="344" width="425"