Social Security

Social Security is the system of policies conducted by the state and federal government organizations, which aim to maintain adequate living conditions and provide security for the nation’s citizens. The origins of present day American policy can be traced back to when the English colonists arrived in North America. They brought along “Poor Laws,” which emphasized taxation to support the impoverished. The Industrial Revolution and the Great Depression greatly influenced the creation of the Social Security Act.

Prior to the Industrial Revolution, America was an agricultural nation; Americans relied on family farming, marriages and relatives for financial means and security. The Great Depression generated nationwide misery. The Stock Market Crash of 1929 signaled the beginning of the Great Depression. Bank failures soon followed and the unemployment and poverty rate reached an all time high. Between 1933 and 1940, President Franklin D. Roosevelt recognized the necessity of government assistance during tough times. He created the First and the Second New Deals in response to this

economic disaster in order to battle poverty. These efforts sought to save the economy and alleviate those impacted by the worst of the Great Depression. Roosevelt appointed a Committee on Economic Security to assess the damages and construct a plan to help those most in need. The Social Security Act, part of Roosevelt’s’ Second New Deal, was officially signed into law on August 14th, 1935. Social Security includes the “Old Age and Survivors Insurance” and the “Disability Insurance” programs. The Supplementary Income program offers benefits for elderly.

Medicare and Medicaid, created by the Social Security Amendment Act 1965, added Title XVIII and XIX to the Social Security Act. President Lyndon B Johnson was responsible for bringing about this change. Social Security Program started during the Great Depression of 1930s because of the stock market crash and bank failure, which wiped away the retirement savings of the Americans. Poverty rate among senior citizen exceeded 50% during this time.

Social Security Act was created in an attempt to limit the five dangers of modern American Society. The Social Security Act was signed by President Franklin D Roosevelt on August 14, 1935, thus becoming the first president to advocate federal assistance to the elderly. Edwin Witt, the executive director of the president committee on economic security is the father of Social Security. If the total benefit paid by social security in 1940 was $35 million, it was $247. 8 billion in 1990, after 50 years.

In 2009, about 51 million Americans received $650 billion benefits, under different social security programs like social security disability insurance (SSDI), supplemental security income (SSI), retirement insurance benefits (RIB), temporary assistance for the needy families, ticket to work and self-sufficiency program, unemployment benefit, State children’s health insurance program, and Medicare and Medicaid. Medicare Title XVIII of the Social Security Act deals with Medicare. It is the country’s health insurance program for the people aged 65 or above.

Certain younger people also will qualify for this program, including those who have certain disabilities, kidney failure, and amyotrophic lateral sclerosis (Lou Gehrig’s disease). Medicare does not cover all the medical expenses or the cost of most of long term-care. Medicare is financed by the payroll tax deduction from the employees, and the proportionate payment of the employer, and the deduction made of the social security checks. Center for Medicare and Medicaid Services manages the fund for the Social Security Administration. Medicare operates thorough four plans.

Source: law aspect