A lot of related concepts and practices were learned from Europe, and the others were from the progressive reformer. Because of economy crisis of ass’s of last century, social welfare issues became the major political problems. All these accelerated the formation of the social security act.
Larry (2010) showed programs in Social Security Act of 1 935 as following: Title I- Grants to States or Old-Age Assistance; Title all- Federal Old-Age Benefits; Title III- Grants to States for Unemployment Compensation Administration; Title IV- Grants to States for Aid to Dependent Children; Title V- Grants to States for Maternal and Child Welfare; Title VI- Public Health Work; Title VII- Social Security Board; Title VIII- Taxes with Respect to Employment; Title IX- Tax on Employers of Eight or More; Title X- Grants to States for Aid to the Blind; Title XI- General Provisions.
The Social Security Act of 1935, this is first time to use the concept f social security, set rules for the social security contents, such as, social insurance, social welfare and social relief, etc. Social security act established the universality and sociality of social security. In the late 19th century early 20th century, the economy developing quickly in united States, gross industrial output value was higher than any other countries in 1894.
Until the First World War in 1 913, gross industrial output value was more than a third of the world; United States became the world’s industrial leading power. Although the United States leaped into the front ranks of the world in economy filed, there was a clear lag in the social welfare legislation. There were three factors promoted the process of social welfare legislation in the United States Jill (1984). First, due to industrial revolution and technology revolution, America’s economy was booming.
Big bourgeois were benefiting from it, but it impacted older workers, because the old technology had eliminated, older workers faced the situation of unemployment and it was hard to find a job again. That prompted United States to consider social security issues. Second, America’s population structure has changed. Elderly proportion was% 1900, increased to 6% in 1 932, and their role was more and more important in the voters. In order to relieve the contradictions of labor, to win more voters, the government should bring some benefit for them.
Thirdly, 1929-1933 world economic crisis speeded up the process of the social security legislation. The economic crisis made the agricultural and industrial products price continue to fall, banks collapsed. Unemployed people lived in poverty, especially, the elderly; they didn’t have pensions. In order to reduce the degree of social impoverishment, the establishment of the social security system is obviously on the agenda. Franklin Roosevelt was elected president Of the United States after he had his “New Deal”.
The House of Representatives argued a lot in discussion of the social security legislation, although it is difficult, on August 8 and 9, the, the House-senate passed, “social security act”, on August 14, President Roosevelt signed into law. Davies ND Dietrich (1997) mentioned Social Security Act of 1 935 laid the foundation for social security system in the United States, had epoch – making significance in the history of United States, had a profound effect on the establishment of the social security system.
First, it made the United States a welfare state. Before 1 935, People themselves took responsibility for America’s social security. After “social security act” promulgated in 1935, the country became one of the indispensable factor in people’s welfare, social stability, economic development, in social stability. Second, Social security act aid a solid foundation for the future social security system. Later, amendment and supplement on this act formed a set formed a set of social security system.
Thirdly, social security act improved the lives of workers, ease the class contradictions. At the same time, social security act also had some shortages. First, about 25% of labor which included farm workers, family servant and hospitals, restaurant workers, women and colored people cannot enjoy the benefits from social security act. Second, the source of pension Was from tax payment of employees and employers, it was actually a mind of compulsive insurance plans, it was not that government ensured elder citizens a standard living.
Above all, as the first modern security law, the social security act of 1 935 is not perfect, but it laid the cornerstone of the American modern social security system.