The Negative Impact Of Social Security In The 1930's

Social security did many great things for this country. “Signed into law on August 14, 1935, the Social Security act, which affects wage earners and retirees to this day, provided aid for citizens who were in need because of increasing age, unemployment, or sickness” ( Thanks to the “Social Security Act of 1935” the country managed to get a large amount of money back into the economy and benefit citizens who have retired. Social security, one of the most important events in the 1930’s, it impacted America in many ways such as, benefiting old people, creating an economic cycle that produced jobs for unemployed citizens, and shaping the future of America with its coverage and benefits. Firstly, Social Security benefited elderly people, the largest group of poor people at the time. Elderly people were the largest group of poor people because they could not work. And “Older workers tended to be the first to lose their jobs and the last to be rehired during economically difficult times…Fewer than 10% of workers in America had any kind of private pension plan through their work.” (DeWitt, 2010, p. 3). Also, the US population of 65 years and older had grown 6.63 million in the 1930’s alone. After Social Security was put in place peoples above 65 received a stable …show more content…
This cycle consisted of people receiving money and then putting it back into the economy to live, giving businesses a reason to increase productivity, to increase productivity, businesses needed to hire more workers, decreasing the unemployment rate, and thus this cycle continues. This cycle did not just put money back into the economy, it helped produce jobs. This system was created for a long-term purpose. “In the 1937-1939 period more than 441,000 people received social security benefits totaling over $25 Million Dollars.” (DeWitt p.7) This cycle helped over 65% of people by 1940, 36% of them consisted of peoples over