What did the Social Security Act of 1935 establish?

The Social Security Act of 1935 established a system of old-age benefits and unemployment insurance, marking a significant shift in the role of the federal government in providing economic security for its citizens. This act aimed to address the financial hardships faced by older adults and those who were temporarily out of work due to economic downturns, particularly during the Great Depression.

The old-age benefits component was designed to provide a safety net for individuals once they reached retirement age, allowing them to receive a monthly income funded through payroll taxes. Unemployment insurance was equally important, as it offered temporary financial support to workers who lost their jobs, helping to stabilize the economy by maintaining consumer spending during downturns.

While other aspects of welfare and public assistance were developed over time, the core focus of the Social Security Act was primarily on creating a system that specifically targeted aging individuals and those experiencing job loss, solidifying its place as a foundational piece of the American welfare state.