Why Was Social Security Created?

Why Was Social Security Created?

A great depression hit America in the year 1930 that made the people leave their family farms and work at the cities. Wage-earners facilities and centers began replacing the farms to more advanced and typical type of jobs. It became the source of economic security that made the country rise from fall. The idea of national social security originally came from Europe in the nineteenth century. Because of economic stress and high unemployment rate caused by the ongoing depression, America decided to imitate the way Europe has secure their people by means of founding a social security system.

On August 14, 1935, President Roosevelt signed a law named Social Security Act that began providing lump sum payments for retired people. It secures the people in terms of their costs of living especially with their dependents. The program administers retirement, survivor and disability benefits. To qualify for this system, one should pay the taxes for social security through their bimonthly or monthly earnings. Their future benefits will actually depend on how much they have contributed from their earnings until the time that they need to retire.

This program has a great impact on how the people tend to live. Of course, when the time comes that they don’t have enough strength to work for themselves, they would still have enough income to support their everyday life. The social security system can also be compared to a savings bank which you need to voluntarily contribute your money for your future use. Not only for yourself but also for your dependents that you need to hold up. Since the money that is deducted from your salary is secured and safe on the hands of the agency, it only means that your future as a retiree is also safe for the social and economic instability.