The Great Depression and Social Security

1272 Words3 Pages

The Great Depression the worst economic crisis of the twentieth century. Beginning with the stock market crash in 1929, this economic catastrophe culminated in a skyrocketing unemployment rate of over 25% with massive poverty never before seen in the United States. Business investment was down 90% and if you had the misfortune to have put your money in a bank that went bust, you were wiped out. Hardest hit by this economic calamity were the elderly. In response the administration of Franklin Delano Roosevelt launched a series of programs called the New Deal. The purpose of these programs were to provide resources to protect the general welfare of citizens in hopes of decreasing the percentage of unemployment, stabilizing the banking markets, reigniting the economy and providing a boost in public morale. Of the numerous initiatives that President Franklin Delano Roosevelt established Social Security was one of the most effective programs enacted by the United States government during the Great Depression and one that has continued to have a powerful and enduring effect on the country through to the present day.

What is Social Security and how does it operate? Social Security is a form of social insurance meant to protect and to aid individuals during periods of difficulty such as old age, unemployment and death. It is a social insurance program funded though taxes on ones income. Social Security is a broad term that can be broken down into several different categories. It may refer to unemployment benefits, health insurance for the aged and disabled, temporary assistance for needy families, and grants to states for medical assistance programs. In the past, it served as a form of social insurance rather than welfare assist...

... middle of paper ...

...ortant improvement in social justice at a time when individuals were giving up hope and becoming disenchanted with the American system of government and economic organization. “The established legislation redefined the relationship between government and society.” (Béland 94). The result was a new notion of social obligation. “The Social Security Act of 1935 created permanent measures that have enduring social, economic and political consequences.” (Béland 94) Today, most Americans continue to see Social Security as an economic program providing financial support for retirees in their golden years. However, it is also an enduring social reform in which we citizens take care of each other. Never again will presidents receive letters stating, “I’m a 60 year old widow greatly in need of medical aid, food and fuel. I pray you, have pity on me” ("Social Security Online”)

Show More
Related

  • FDR Election DBQ Essay

    524 Words  | 2 Pages

    In the Roaring Twenties, people started buying household materials and stocks that they could not pay for in credit. Farmers, textile workers, and miners all got low wages. In 1929, the stock market crashed. All of these events started the Great Depression. During the beginning of the Great Depression, 9000 banks were closed, ending nine million savings accounts. This lead to the closing of eighty-six thousand businesses, a European depression, an overproduction of food, and a lowering of prices. It also led to more people going hungry, more homeless people, and much lower job wages. There was a 28% increase in the amount of homeless people from 1929 to 1933. And in the midst of the beginning of the Great Depression, President Hoover did nothing to improve the condition of the nation. In 1932, people decided that America needed a change. For the first time in twelve years, they elected a democratic president, President Franklin D. Roosevelt. Immediately he began to work on fixing the American economy. He closed all banks and began a series of laws called the New Laws. L...

    Read More

  • FDR's Response to the Great Depression

    1222 Words  | 3 Pages

    The stock market crash of 1929 set in motion a chain of events that would plunge the United States into a deep depression. The Great Depression of the 1930's spelled the end of an era of economic prosperity during the 1920's. Herbert Hoover was the unlucky president to preside over this economic downturn, and he bore the brunt of the blame for the depression. Hoover believed the root cause of the depression was international, and he therefore believed that restoring the gold standard would ultimately drag the United States out of depression by reviving international trade. Hoover initiated many new domestic works programs aimed at creating jobs, but it seemed to have no effect as the unemployment rate continued to rise. The Democrats nominated Franklin Roosevelt as their candidate for president in 1932 against the incumbent Hoover. Roosevelt was elected in a landslide victory in part due to his platform called "The New Deal". This campaign platform was never fully explained by Roosevelt prior to his election, but it appealed to the American people as something new and different from anything Hoover was doing to ameliorate the problem. The Roosevelt administration's response to the Great Depression served to remedy some of the temporary employment problems, while drastically changing the role of the government, but failed to return the American economy to the levels of prosperity enjoyed during the 1920's.

    Read More

  • New Deal Dbq

    1545 Words  | 4 Pages

    Coming into the 1930’s, the United States underwent a severe economic recession, referred to as the Great Depression. Resulting in high unemployment and poverty rates, deflation, and an unstable economy, the Great Depression considerably hindered American society. In 1932, Franklin Roosevelt was nominated to succeed the spot of presidency, making his main priority to revamp and rebuild the United States, telling American citizens “I pledge you, I pledge myself, to a new deal for the American people," (“New” 2). The purpose of the New Deal was to expand the Federal Government, implementing authority over big businesses, the banking system, the stock market, and agricultural production. Through the New Deal, acts were passed to stimulate the economy, aid banks, alleviate environmental problems, eliminate poverty, and create a stronger central government (“New”1).

    Read More

  • FDR DBQ

    1167 Words  | 3 Pages

    The Great Depression was one of the greatest challenges that the United States faced during the twentieth century. It sidelined not only the economy of America, but also that of the entire world. The Depression was unlike anything that had been seen before. It was more prolonged and influential than any economic downturn in the history of the United States. The Depression struck fear in the government and the American people because it was so different. Calvin Coolidge even said, "In other periods of depression, it has always been possible to see some things which were solid and upon which you could base hope, but as I look about, I now see nothing to give ground to hope—nothing of man." People were scared and did not know what to do to address the looming economic crash. As a result of the Depression’s seriousness and severity, it took unconventional methods to fix the economy and get it going again. Franklin D. Roosevelt and his administration had to think outside the box to fix the economy. The administration changed the role of the government in the lives of the people, the economy, and the world. As a result of the abnormal nature of the Depression, the FDR administration had to experiment with different programs and approaches to the issue, as stated by William Lloyd Garrison when he describes the new deal as both assisting and slowing the recovery. Some of the programs, such as the FDIC and works programs, were successful; however, others like the NIRA did little to address the economic issue. Additionally, the FDR administration also created a role for the federal government in the everyday lives of the American people by providing jobs through the works program and establishing the precedent of Social Security...

    Read More

  • Compare And Contrast The Great Depression And The New Deal

    1257 Words  | 3 Pages

    The Great Depression of 1929 to 1940 began and centered in the United States, but spread quickly throughout the industrial world. The economic catastrophe and its impact defied the description of the grim words that described the Great Depression. This was a severe blow to the United States economy. President Roosevelt’s New Deal is what helped reshape the economy and even the structure of the United States. The programs that the New Deal had helped employ and gave financial security to several Americans. The New Deals programs would prove to be effective and beneficial to the American society.

    Read More

  • Responsibility Taken by the Federal Government: Social Security

    1352 Words  | 3 Pages

    Throughout the 20th century governmental responsibility has made remarkable progress. One major milestone of the widening of the responsibility of the federal government was it’s making an obligation to care for the elderly and retired in the form of social security. In 1935, the Social Security Act was enacted by the federal government to provide financial security to the elderly, retired citizens in America. Although the federal government first took on this responsibility in 1935, it is still affecting our lives today. However, social security would not have advanced this far without many organizations and individual reformers to begin and improve social security throughout history.

    Read More

  • Assessment of the Success of the New Deal

    1112 Words  | 3 Pages

    After the depression America was in a state mass hysteria as the Wall Street crash had caused a massive crisis among the American public because the impact of the wall street crash caused 12 million people out of work, it also caused 20,000 companies to go bankrupt and there were 23,000 suicides in one year because of the wall street crash this was the highest amount of suicides in a year ever. The main aims of the new deal were Relief, Recovery and Reform, Relief was for the Homeless and Unemployed, recovery was for Industry, Agriculture and Banks and Reform was to prevent the depression form happening again. The structure of The New Deal was the First Hundred Days (1933) where he would focus on relief by helping the homeless and unemployed and recovery by helping industry, agriculture and banks, there was also the Second New Deal where he would focus on Reform, preventing the depression from happening again. Roosevelt believed that the government should help those people worst affected by the depression, this is why he created over 50 alphabet agencies to deal with the problems caused by the depression, this is why he introduced the new deal because he wanted to ease the pressure

    Read More

  • Social Welfare System Mini-Paper

    1308 Words  | 3 Pages

    This mini-paper will discuss the social welfare system. The mini-paper includes a discussion of welfare Policy, residual and institutional approach, and what is Social Welfare and Social Security. Midgely, (2009), pointed out that social welfare systems deliver services that facilitate and empower our society, especially to those persons who require assistance in meeting their basic human needs. The goal of social welfare is to provide social services to citizens from diverse cultures, and examples include Medicare, Medicaid, and food benefits. Midgley,( 2009).

    Read More

  • Social Security Act Essay

    766 Words  | 2 Pages

    The orator’s (FDR) committee, “The President's Committee on Economic Security”, a committee consisting of some of President Roosevelt’s top cabinet members and chiefs of staff, provided the research and analysis that led to creation of the Social Security Act and this recorded document. This filmed document describe...

    Read More

  • Great Depression Dbq

    377 Words  | 1 Pages

    Overspending by Americans in the Roaring Twenties, the increase in bank offered credit, the rise and final crash of the stock market all took part in causing the Great Depression (“The Great Depression”, n.d.). These were times the wealthy saved their money and the middle class had taken on too much debt putting them in the same place as the poverty-stricken. Proceeds in this time made by the owners of the manufactures and other profitable companies were held close at hand. Workers couldn’t keep up with the times nor were their pockets becoming larger at the larger demands were upon them; thus, most losing their jobs in the end. Disbursement of monies was hugely lopsided and President Hoover with his minimalist approach did not try to correct this. When he won his election, he had led the nation to believe the U.S. was well on its way to ending poverty altogether; however, within an instant, this dream and his words fell short. His support from the people lowered every year he was in office and finally crashed as did the stock market.

    Read More

  • The First Political Parties

    2273 Words  | 5 Pages

    Davis, Kennith. “The Birth of Social Security.” In Visions of America’s Past, edited by William

    Read More

  • Public Policy of Social Security and Retirement Savings

    1203 Words  | 3 Pages

    The Social Security Act was passed by President FDR as one of his programs to fight the Great Depression. The Social Security Act was enacted August 14, 1935 (Social Security Act). The current problem is the fear of what will become of Social Security as the baby boomers generation begins to retire. As millions of baby boomers approach retirement, the program's annual cash surplus will shrink and then disappear. Then, Social Security will not be able to pay full benefits from its payroll and other tax revenues (Social Security Reform Center – Problem). This is causing the U.S. government to think about reform and changes for the ...

    Read More

  • Great Depression Dbq

    897 Words  | 2 Pages

    A. The quotes from Henry Ford and Herbert Hoover suggest that the great depression took government and businesses by surprise. Hoover talks about how America was “nearer to the final triumph over poverty than ever before in this land”, and that they were in a good position. In reality the country was continuing to fall into a deeper hole of financial problems. Hoover also suggests that he felt he didn’t need to interfere with the situation, as the country was doing just fine. The same goes for Ford who says that there are enough jobs in the country for people who are actually willing to put in work, when in reality he is forced to fire more and more people. B. The excerpt from the song “Brother can you spare a dime” showcases the anger of the veteran during the great depression. The song describes how he “went sloggin’ through hell” during the first world war. But is not being

    Read More

  • The Past, Present and Future of Social Security

    2689 Words  | 6 Pages

    Social security, the federal retirement system, is one of the most popular government programs in United State?s history. Today, Social Security benefits are the backbone of the nation's retirement income system. The long road to the successful development of social security began in 1935. Before 1935, very few workers received job pensions. Those workers that were covered never received benefits because they were not guaranteed.

    Read More

  • Retirement Planning

    1276 Words  | 3 Pages

    It stated heavier taxes on the wealthy, new way of controlling banks and public utilities, and a huge work relief program for those people who were unemployed. Social Security has been around for so long, but now people under the age of sixty-five think it will go bankrupt before they retire, according to a new CNN/TIME poll, and most of them do not think they will be able to save enough on their own. Only thirty-one percent say that the system is currently in a crisis; majority just feels that there are problems but not a crisis. The way you feel about Social Security is based totally on what age you are. People over fifty seem to think the system is fair while others feel it is not. In the Industrial Age, a Defined Benefit pension plan meant that the company guaranteed you, the worker, and a defined amount of money for as long as you lived. This made people feel secure because these plans assured a stead...

    Read More

More about The Great Depression and Social Security

Open Document