Social Security Act

Real World Example

The Social Security Act, part of President Franklin D. Roosevelt's New Deal, was important because it aimed to provide financial security for the elderly and unemployed during the Great Depression. This act introduced the idea that the government should play a role in supporting citizens in times of economic hardship, a concept that was new and somewhat controversial at the time. Today, Social Security remains a crucial program, helping millions of retirees and people with disabilities maintain a basic standard of living. It highlights ongoing debates about the government's role in welfare and how best to support vulnerable populations. For an average person, paying into Social Security through taxes means they can expect some financial support when they retire or if they face unemployment, impacting their long-term financial planning.