Social Security was one of the most important New Deal programs. The Social Security Act was enacted on August 14, 1935. It was organized in order to provide financial assistance to those in need. The program was so successful that it's still available today.
Social Security is also known as Old-Age, Survivors, and Disability Insurance. Social Security is a broad area of insurance which includes:
- Federal Old-Age (Retirement), Survivors, and Disability Insurance
- Unemployment benefits
- Temporary Assistance for Needy Families
- Health Insurance for Aged and Disabled (Medicare)
- Grants to States for Medical Assistance Programs (Medicaid)
- State Children's Health Insurance Program (SCHIP)
- Supplemental Security Income (SSI)
- Patient Protection and Affordable Care Act
How social security works:
When someone gets their paycheck, there are some taxes that are automatically removed. Part of the money removed for taxes is sent to the social security pool. After this pool is built up with the tax money, it is then distributed to everyone qualified for social security. Essentially, when you see an older person living off social security, they got that money from all of the workers in the United States.
Sources:
http://money.cnn.com/retirement/guide/SocialSecurity_basics.moneymag/index.htm
http://en.wikipedia.org/wiki/Social_Security_(United_States), and
the Textbook.
Comments
Again, good info but no personal thoughts.