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Social Security Law

The Great Depression was one of the most profound economic downturns in American history. It has been estimated that as much as one-quarter of the workforce was unemployed at one point. Upon his inauguration in 1933, President Franklin D. Roosevelt initiated his various New Deal programs in order to alleviate the worst of the conditions. One of the centerpieces of his New Deal was the nation’s first social security law.

Social Security Law

The Social Security Act of 1935 was an attempt to help some of the most vulnerable people in American society, the old, widows and fatherless children. Social security law continues in the United States today, with every citizen receiving a social security number, either at birth or naturalization.

The IRS is responsible for the collection of social security taxes from the payroll of all employees, including FICA or SECA. The idea is that, after paying into the system during a working career, the person receives a stipend at retirement in order to keep them out of poverty. In 2013, Social Security expenditures made up 8.4% of the US GDP, some $1.3 trillion.

Major programs existing under the current social security law include Federal Old-Age (Retirement), Survivors, and Disability Insurance (OASDI), Temporary Assistance for Needy Families (TANF), State Children’s Health Insurance Program (SCHIP), Supplemental Security Income (SSI), plus Medicare and Medicaid.

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