The Social Security Act came to be because of two separate factors, the Industrial Revolution and the Great Depression. You see, before these two events which shaped the United States to what we know it as today security for the elderly came from another source. In this time prior to the 1930’s America was almost entirely an agricultural nation. A typical life in this period would be to grow up on the farm working the land until you were too old to do so. Once this occurred your extended family would take care of you until you passed away, so there was no need for social security. But, as all good things must come to an end so did this fairy tale world where blood actually was thicker than water. The industrial revolution was what started it making the extended family and the family farm less common sources of financial security. Then, the Great Depression finished this metamorphosis off so to speak by making things so economically difficult that it was every immediate family for themselves. And so the Social Security Act was born.
On June 8th, 1934, President Franklin D. Roosevelt first spoke of his idea of a social security program to Congress. To tackle the actual creation of such a policy the President appointed by Executive Order the Committee on Economic Security. The committee was told to examine the entire problem of economic insecurity and to then devise a plan to help those most in need. In early 1935 the committee made its report to President Roosevelt and by January 17th he had introduced the findings of the committee to both houses of Congress so that there idea could be considered. Soon the houses were able to come to majority decision as the Social Security Act was signed into law on August 14th 1935.
One of the first things that this act did was establish a bipartisan Social Security Board made up of 3 members who were chosen by the president. The original members of this board included John G. Winant, Arthur J. Altmeyer, and Vincent M. Miles. The duties of the SSB encompassed such things as delegating to the public how earnings were to be reported and what benefits were available to them. For Social Security to be effective though the United States government had much more to do. The biggest thing on this to-do list was to register all employers and employees by the deadline January 1, 1937 when they would start receiving credits towards their old age insurance benefits. To do this the government contracted with the United States Postal Service to deliver applications to the American people. Over 35 million SSN cards were issued via this mass registration between 1936 and 1937 alone.
Through the Social Security Act monthly benefits were to begin in 1942. So from 1937 up until then the U.S. paid out single lump-sum payments to retirees. The first man to receive such a payment was Ernest Ackerman, a retired Cleveland motorman. Acker retired only one day after the act began and so he received a payment for only 17 cents. This was far below the average of the time of $58.06.
One of the first things that this act did was establish a bipartisan Social Security Board made up of 3 members who were chosen by the president. The original members of this board included John G. Winant, Arthur J. Altmeyer, and Vincent M. Miles. The duties of the SSB encompassed such things as delegating to the public how earnings were to be reported and what benefits were available to them. For Social Security to be effective though the United States government had much more to do. The biggest thing on this to-do list was to register all employers and employees by the deadline January 1, 1937 when they would start receiving credits towards their old age insurance benefits. To do this the government contracted with the United States Postal Service to deliver applications to the American people. Over 35 million SSN cards were issued via this mass registration between 1936 and 1937 alone.
Through the Social Security Act monthly benefits were to begin in 1942. So from 1937 up until then the U.S. paid out single lump-sum payments to retirees. The first man to receive such a payment was Ernest Ackerman, a retired Cleveland motorman. Acker retired only one day after the act began and so he received a payment for only 17 cents. This was far below the average of the time of $58.06.