Social Security - History & Importance of Sustaining It

Social Security has provided economic security for millions of Americans since it began in 1935. President Franklin D. Roosevelt signed the Social Security Act in order to help those suffering economic hardships due to the Great Depression.

The program now helps retirees, disabled individuals, and survivors of deceased workers. It is important to ensure financial stability for the aging population and vulnerable individuals.

The Social Security Act began as part of Roosevelt’s New Deal that aimed to assist the elderly and unemployed. When first implemented, the program provided benefits to workers aged 65 and older, and was funded through payroll taxes (DeWitt, 2010). Many retirees rely on Social Security payments as their primary source of income. According to the Social Security Administration (2023), nearly 90% of Americans aged 65 and older receive Social Security benefits, and for 40% of them, these benefits constitute more than half of their total income.

The program was broadened through the years:

• In 1939, amendments extended benefits to spouses and minor children of retired workers. Survivor benefits ensure financial stability for widows, widowers, and children of deceased workers. These benefits prevent families from falling into poverty after the loss of a primary income earner (NASI, 2021).
• In 1956, the Social Security Disability Insurance (SSDI) program was introduced, providing benefits to disabled workers. Social Security Disability Insurance (SSDI) offers crucial support to individuals who are unable to work due to significant disabilities. Without this assistance, many disabled individuals and their families would face severe financial hardship.
• The 1972 amendments established automatic cost-of-living adjustments (COLAs) to ensure benefits kept pace with inflation (SSA, 2023).

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​Social Security contributes to the economic stability of the country by providing consistent income to millions of people who paid into it, and boosts consumer spending which supports businesses and jobs (Goss, 2010). It is critical that we ensure that the program stays viable through policy changes that strengthen it. Some solutions that have been posed are increasing the payroll tax rate, increasing the taxable income cap, adjusting benefits, or implementing a combination of these strategies. It is important to understand the importance of the program and to take steps to make sure the program continues for future generations.

Here are a couple of resources stressing the importance of taking action to maintain the Social Security program: 

• Policy Basics: Top Ten Facts about Social Security

​(https://www.cbpp.org/research/social-security/top-ten-facts-about-social-security)

• How Social Security cuts could put millions of older Americans at risk

(https://www.pbs.org/newshour/show/how-social-security-cuts-could-put-millions-of-older-americans-at-risk)

References
DeWitt, L. (2010). The development of Social Security in America. Social Security Bulletin, 70(3), 1-26. https://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p1.html
Goss, S. C. (2010). The future financial status of the Social Security program. Social Security Bulletin, 70(3), 111-125. https://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p111.html
National Academy of Social Insurance (NASI). (2021). Social Security benefits, finances, and policy options: A primer. https://www.nasi.org/research/social-security/
Social Security Administration (SSA). (2023). Annual statistical supplement to the Social Security Bulletin, 2023. https://www.ssa.gov/policy/docs/statcomps/supplement/