The Establishment of U.S. Social Security

The Establishment of U.S. Social Security

The original U.S. Social Security Act was signed into law on August 14, 1935, prompted by the ravages of the Great Depression (Weaver and Martin, 2005). However, the Committee on Economic Security, appointed by President Roosevelt, had already been in discussions about the need for a federal social insurance program prior to the Depression.

Following 1939 amendments to the Act, Social Security retirement benefits began being distributed in 1940 (Weaver & Martin, 2005). Initially under the 1939 amendments, Social Security benefits were only granted to people 65 years or older who were earning less than $15 per month. Benefits were limited to those whose previous jobs were covered, excluding many workers.

Additionally, only assistance for blind people and the aged was included in original Social Security state grants (Weaver & Martin, 2005). But discussion of a Social Security insurance program for completely disabled workers dates back to before the passage of the original Social Security Act (“1986 Disability History,” n.d.).

In 1949 the House of Representatives passed provisions for disability benefits to be paid out under Title II of the Act but the Senate voted them down (“1986 Disability History,” n.d.). It was not until amendments to the Act in 1954 that disability was added to Social Security and, with further amendments in 1956, SSDI benefits were finally administered. The number of covered workers was also greatly increased.

Even so, benefits were originally only available to disabled workers who were fifty years or older and children who were disabled before age 18 of insured retired or deceased workers (“1986 Disability History,” n.d.). Subsequent 1958 amendments added benefits for dependents of SSDI recipients, and in 1960 the age requirement to apply for SSDI was eliminated.

Despite these advances, however, legions of adults and children remained in destitution with little or no assistance to fall back on. Read about the creation of Supplemental Security Insurance (SSI) by clicking here.

Sources

1986 Disability History Report. Social Security History. (n.d.). Retrieved May 8, 2022, from https://www.ssa.gov/history/1986dibhistory.html

Weaver, D. A., & Martin, P. P. (2005, September 1). Social Security: A Program and Policy History. Social Security Administration Research, Statistics, and Policy Analysis. Retrieved May 8, 2022, from https://www.ssa.gov/policy/docs/ssb/v66n1/v66n1p1.html