The social security act was passed in 1935.The social security act had three major parts.1) Old age insurance for retired people 65 years of age and older and their spouses. Half of the funds for this insurance came from the worker and half of it came from the employer. This was meant to help make retirement easy and comfortable.2) Unemployment compensation system. This system was funded by federal tax that was put on employers. Starting payments went from 15 dollars to 18 dollars a week.3) Aid to families with dependdent children and the disabled. This was payed by federal funds that were abailable to the state.This act was made to fix the problem of old age pensions. The act also had funds to help children in need like the blind. It also helped the unemployed and it provided some family health care systems. Before social security the majority of poverty was the elderly people when they retired. Or people that had other disabilities that are either mental or physical.This helped with other people who were unemployed and on the streets. they could have disabilities and cant work to pay for things and this helps them pay for stuff and this helps the economy because they can afford to consume certain products. if There is a lot of unemployed people the economy struggles because people dont consume a lot of things because they cant afford it.Sources-http://en.wikipedia.org/wiki/Social_Security_(United_States)http://www.nationalcenter.org/SocialSecurityAct.html
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