An introduction to the successes and issues of the social security act

It must provide safeguards against all of the hazards leading to destitution and dependency. Bills were introduced in the House and Senate the same day. Roosevelt signed the Social Security Act into law on August 14, The program was the crown jewel of his New Deal.

An introduction to the successes and issues of the social security act

Almost everyone is covered by the social security system, notably after the reform of that extended coverage to those previously excluded owing to lack of income. Social insurance was introduced in and family allowances inbut the comprehensive… The rationale for social security Because general social security schemes based on compulsory insurance did not come into being until the last two decades of the 19th century, it has often been argued that social security in its modern form has been a response to industrializationwhich caused large numbers of people to become dependent for their security solely on earnings from employment.

Indeed many families became dependent on one male earner and thus on his capacity to find work, to undertake it, and to remain in it. Moreover, industrialization led to the migration of people toward centres of work, thus separating them from the support given by the wider family.

In addition, the development of compulsory education prolonged the period during which children were dependent on their parents; later the system of enforced retirement created dependency at the other end of life.

This situation is contrasted with an often idealized image of the extended rural family with access to land, on which both husband and wife worked, children started work early, and old people continued to work until they became too frail or disabled to do so.

On the basis of this oversimplification, some theorists have proposed that social security developed out of a need peculiar to industrial societies and that there is less need or no need for social security programs in the rural areas of developing countries today.

It is true that support from the extended familyoften enforced by local custom and religious beliefs, contributes to the survival of peasant societies.

An introduction to the successes and issues of the social security act

But by no means do all the rural populations of developing countries have access to land, and many people work for wages in agricultural estates and mines.

Moreover, peasant farmers are subject to formidable risks of crop failure, quite apart from the risks associated with the shorter average life span that characterizes developing countries. Although there is a need for social security in rural societies, the importance of specific risks may vary from region to region.

Moreover, the irregular incomes in cash and kind emanating from agriculture do not lend themselves to the payment of regular social insurance contributions. Thus, what may be lacking in rural societies is the economic and administrative base for providing such security.

Furthermore, provision for sickness and old age is not generally seen as the highest priority by peasant farmers overwhelmed by problems of weather and debt. While the advent of industrialization has undoubtedly added to the need for social security by breaking up the extended family and leading to urban poverty, it is by no means the sole reason why the system evolved.

Two of the first three countries to make provision for old-age pensions were primarily agricultural societies— Denmark in and New Zealand in The Danish scheme was clearly an attempt to alleviate rural rather than urban poverty.

And it is notable that the first province in Canada to develop compulsory health insurance was Saskatchewan, which was overwhelmingly agricultural.

These cases indicate that statutory social security may evolve for a variety of reasons. Moreover, it depends to a considerable degree on the economic level attained by the groups that might be covered and the administrative capacity of the country to operate such a scheme.

It is certainly the case that, as countries become wealthier, there is greater willingness to defer consumption by paying insurance contributions or taxes. Historical evolution Developments to c. Charitable giving has been encouraged by many different religions, and in many parts of the world religious agencies have long collected charitable donations and distributed help to those in need.

The rationale for social security

The imposition of obligations on communities to pay taxes in order to provide for the poor can be traced back for hundreds of years in a number of different societies.

Town poor laws were passed in Germany from onward, and a law passed in clearly placed on towns and communities the obligation of sustaining the poor.

In the Prussian states assumed the responsibility of providing food and lodgings for those citizens who were unable to support and fend for themselves. From the 16th century it became recognized in England that there were people who could not find work, and legislation was passed to provide work for the poor and houses of correction for rogues and idlers.

From a clear obligation was placed on parishes to levy local taxes and appoint overseers of the poor in order to give relief to those who could not work and to provide work for those who could. This formed was the essence of the Elizabethan Poor Lawsan early provision of social assistance.

The Elizabethan Poor Laws were poorly enforced in the 17th century but widely used and liberalized by the end of the 18th century. A new Poor Law enacted inand reflecting a harsh moral view of poverty, required the poor persons to be admitted to the workhouse so as to receive relief only in kind, with occasional exceptions, but this again was by no means uniformly enforced, though it added greatly to the unpopularity of the Poor Laws.

The English Poor Laws were also introduced in Jamaica in for destitute European immigrants and much later in Mauritius and Trinidad The first general social insurance scheme was introduced in Germany in The scheme drew upon three types of precedent. The first was the ancient system of guild collection boxes—funds to which each member of a particular trade was required to contribute at regular intervals; such funds were originally used for hospital and funeral expenses and for food and lodging for aged and disabled members.

By the middle of the 14th century these arrangements were covered by statutes and regulations. Relief funds were later established by associations of miners. The second precedent was a Prussian ordinance of that placed on masters a duty to ensure that their servants were given medical attention in case of illness.

From communities could make bylaws requiring both employers and employees to contribute to relief funds, and a law of introduced compulsory health and accident insurance for miners.

As a result of this liability, which was widened inmany employers took out private insurance.

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The system did not work well because the burden of proof lay with the worker, who normally had to incur high legal costs and delay before he could hope to obtain lump-sum compensation. This was followed by a law of making accident insurance compulsory. The schemes were operated by numerous funds controlled by the insured and their employers.

Finally a law establishing a pension for all workers in trade, industry, and agriculture from the age of 70 was passed in This was directly administered by the Imperial Insurance Office.Social security: Social security, any of the measures established by legislation to maintain individual or family income or to provide income when some or all sources of income are disrupted or terminated or when exceptionally heavy expenditures have to be incurred (e.g., in bringing up children or paying for.

Social Security has the dual distinction of being both an abysmal failure and a whopping success, and that's not just political double-speak.

It all depends on which side of the coin you favor. The original Social Security Act included not just federal old-age benefits but also grants to the states for the blind, for dependent children, for public health, for maternal and child welfare, and for unemployment compensation.

In the social security act was born from just such a need, when American was in crisis, so now with the current projections pointing to the crisis in social security, experts believe that by , the social security trust fund will be exhausted.

The Social Security Act — The Social Security Act of is one of the most important pieces of legislation in American history. Passed during the depth of the Great Depression, it was an.

In Pres. Franklin D. Roosevelt set up a committee on economic security to consider the matter; after studying its recommendations, Congress in enacted the Social Security Act, providing old-age benefits to be financed by a payroll tax on employers and employees.

The Successes and Failures of Social Security – Militant Libertarian