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Shelby Hernandez

Jenel Cope

History 1700-09

November 17, 2017

Social Security Act

The Social Security Act is to provide general welfare by establishing a system of

Federal old age benefits, and to make adequate provision for the elderly, blind persons,

dependent and crippled children, maternal and child welfare, public health, and the

unemployed. On August 15, 1935, President Franklin D. Roosevelt signed the Social

Security Act and eventually passed through both houses. He wanted to create a solution for

old-age pensions and sent a letter to the Congress asking for a Social Security legislation.

The Act is a great way to help the retirees and it helps our country and hardworking citizens

as well.

What is a Social Security? Well, a Social Security is a Social Security number. You

need it to get a job and pay taxes. The number is used to track your earnings while working

and for you to get benefits. You should never carry your card around and be cautious on

giving it to someone. Identity theft is one of the most growing crimes today. Identity thieves

use your Social Security number which gives them access to credit cards. (Social

Security.)

In order to get a Social Security number, you must prove you are a U.S. citizen or

immigration status, age, and identity. If you lose your card and need another one, or want to

change your name on the current card, you will just have to fill out a simple application and
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ask to see certain documents. There will be only a certain amount of documents as proof of

U.S. citizenship.

Why did President Roosevelt want to pass this Act? He was concern for, and I quote,

young people who have come to wonder what would be their lot when they come to an old

age. And there had been many people who had been employment but had no job security. It

was initially created to combat unemployment, Social Security now functions as a safety net

for retirees and the disabled, and provides death benefits to tax payers dependents. The Act

has remained the same since 1935. (FDR signs Social Security Act.)

In the New Deal, Roosevelts liberal solution to the problem of the Great Depression

was to use government as a tool for creating a New Deal for the American people with the

three Rs, such as relief, reform, and recovery. The Social Security Act created a Social

Security Board (SSB), to oversee the administration of the new program. It was created as

part of President Roosevelt's New Deal with the signing of the Social Security Act. (Weaver)

The Act was meant for the people that needed the help. It will protect the retired,

elderly workers and financial poverty. It provided unemployed insurance, old-age insurance

and welfare programs. The Great Depression is what drove the president to create the Social

Security Act because a lot of people were struggling financially having to pay all their

money for insurance and they were beginning to live in poverty upon retirement. Luckily

when the Act was passed, it was a huge relief to many families. It created a social insurances

program to pay retired workers.

Now, lets go more into detail about the Social Security programs. The elderly

retirement programs provide a lifetime monthly income once they have reached the
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retirement age. The ages from 65 or older are guaranteed an income after they become

retired. Today, two out of 3 seniors rely on the Social Security benefits for most of their

income.

In 2011, the average Social Security benefit was $1,180.80 per month. The maximum

possible benefit for a worker retiring at age 66 in 2011 is $2,336. To get this amount, the

worker would need to earn the maximum taxable amount, currently $106,800, each year after

the age of 21. The way it works is the Social Security workers contributed to a trust fund

from their paychecks to pay for the retirement and other benefits they may need in the future.

(Brandon)

The survivor program provides a monthly income to the surviving spouse of the

deceased worker once he or she reaches retirement. The amount depends on both spouses

incomes when working. It also pays benefits to children under the age of 18 and a surviving

spouse that is under their care. Unless they are disabled, the children benefits end when the

last child reaches 18 or graduates from high school.

Social Security pays lifetime monthly to the disabled, and in some cases, their spouse

and children under the age of 18, depending on the workers earning history. Disability

benefits are paid to workers who have been disabled for at least one year. Disabled means

that they are unable to perform any substantial gainful work due to severe physical or mental

impairment. (Social Security FAQ.)

The Supplemental Security Income (SSI) program is not part of the Social Security.

SSI helps aged, blind, and disabled people who have no or little income. It provides cash to

meet the basic needs, such as, food, shelter, and clothing. To get SSI, a worker must be blind,

disabled or at least 65 years old.

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On most workers paychecks, the pay stubs from most employees do not show the

amount paid for Social Security and Medicare. Instead, they go under the FICA (Federal

Insurance Contributions Act). The FICA is part of the revenue code that gives the federal

government the authority to collect the payroll taxes that pay for the social security programs

and parts of Medicare.

The Act has become one of the most important pieces of legislation in American

history, which created programs to serve many groups of citizens. The president said, This

act provides for the general welfare by establishing a system of Federal old age benefits. It

will also give grants to the states for unemployed compensation administration appropriation

and help Maternal and child welfare.

It provides maternal needs for individuals and families, to protect old age and

disabled people against the expenses of illnesses that may cause them to use up their savings.

It will keep families together and give children the chance to grow up healthy and secure. To

receive the benefits later on, once you are employed, you pay into the Social Security and

will receive the benefits when you retire.

Today, the Social Securitys act may seem a bit confusing to most people. Even

though it is a popular federal program, some know nothing about it. There are a lot of rules

and complex benefits that make it difficult for people to understand how their benefits

retirement work. (John)

Overall, Social Security is one of the most important programs in America. Since

1935, it has become one of the most helpful programs to many citizens. It basically is

workers and employers paying the funds and will receive the benefits later on when they
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retire or become disabled. It is giving the younger generation to build a secure retirement for

their future.
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Work Cited

FDR signs Social Security Act. History.com, A&E Television Networks,

www.history.com/this-day-in-history/fdr-signs-social-security-act

Social Security FAQ. Strengthen Social Security,

www.strengthensocialsecurity.org/about/social-security-faq/.

Social Security. The United States Social Security Administration, www.ssa.gov/

Brandon, Emily. How to Predict Your Social Security Payout. U.S. News & World Report,

U.S. News & World Report, 1 Aug. 2011,

money.usnews.com/money/retirement/articles/2011/08/01/how-to-predict-your-social-

security-payout.

John, David. How Today's Social Security Works. The Heritage Foundation,

www.heritage.org/social-security/report/how-todays-social-security-works.

Weaver, Patricia P. Martin and David A. Social Security Administration. The United

States Social Security Administration, 1 Sept. 2005,

www.ssa.gov/policy/docs/ssb/v66n1/v66n1p1.html