The Development of Social Security in America
The DevelopmenT of Social SecuriTy in america by Larry DeWitt*
This article examines the historical origins and legislative development of the U.S. Social Security program. Focusing on the contributory social insurance program introduced in title II of the Social Security Act of 1935, the article traces the major amendments to the original program and provides an up-to-date description of the major provisions of the system. The article concludes with a brief overview of the debate over the future of the program, and it provides a summary assessment of the impact and importance of Social Security as a central pillar of the U.S. social welfare system.
Conceptual Foundations and Historical Precedents
This section provides a high-level overview of the historical background and developments leading up to the establishment of the Social Security system in the United States. The Origins of Social Insurance Economic security is a universal human problem, encompassing the ways in which an individual or a family provides for some assurance of income when an individual is either too old or too disabled to work, when a family breadwinner dies, or when a worker faces involuntary unemployment (in more modern times). All societies throughout human history have had to come to terms with this problem in some way. The various strategies for addressing this problem rely on a mix of individual and collective efforts. Some strategies are mostly individual (such as accruing savings and investments); others are more collective (such as relying on help from family, fraternal organizations and unions, religious groups, charities, and social welfare programs); and some strategies are a mix of both (such as the use of various forms of insurance to reduce economic risk). The insurance principle is the strategy of minimizing an individual’s economic risk by contributing to a fund from which benefits can be paid when an insured
individual suffers a loss (such as a fire that destroys
This article examines the historical origins and legislative development of the U.S. Social Security program. Focusing on the contributory social insurance program introduced in title II of the Social Security Act of 1935, the article traces the major amendments to the original program and provides an up-to-date description of the major provisions of the system. The article concludes with a brief overview of the debate over the future of the program, and it provides a summary assessment of the impact and importance of Social Security as a central pillar of the U.S. social welfare system.
Conceptual Foundations and Historical Precedents
This section provides a high-level overview of the historical background and developments leading up to the establishment of the Social Security system in the United States. The Origins of Social Insurance Economic security is a universal human problem, encompassing the ways in which an individual or a family provides for some assurance of income when an individual is either too old or too disabled to work, when a family breadwinner dies, or when a worker faces involuntary unemployment (in more modern times). All societies throughout human history have had to come to terms with this problem in some way. The various strategies for addressing this problem rely on a mix of individual and collective efforts. Some strategies are mostly individual (such as accruing savings and investments); others are more collective (such as relying on help from family, fraternal organizations and unions, religious groups, charities, and social welfare programs); and some strategies are a mix of both (such as the use of various forms of insurance to reduce economic risk). The insurance principle is the strategy of minimizing an individual’s economic risk by contributing to a fund from which benefits can be paid when an insured
individual suffers a loss (such as a fire that destroys
References: Amenta, Edwin. 2006. When movements mattered: The Townsend Plan and the rise of Social Security. Princeton, NJ: Princeton University Press. Armstrong, Barbara. 1932. Insuring the essentials. New York, NY: Macmillan. Berkowitz, Edward, and Larry DeWitt. 2009. Social Security from the New Deal to the Great Society: Expanding the public domain. In Conservatism and American political development, Brian J. Glenn and Steven M. Teles, eds., 53–85. New York, NY: Oxford University Press. Bureau of the Census. 1961. Historical statistics of the United States: Colonial times to 1957. Washington, DC:, Department of Commerce. ———. 1975. Historical statistics of the United States: Colonial times to 1970. Washington, DC: Department of Commerce. Collins, Katharine P., and Anne Erfle. 1985. Social Security Disability Benefits Reform Act of 1984: Legislative history and summary of provisions. Social Security Bulletin 48(4): 5–32. Davies, Gareth, and Martha Derthick. 1997. Race and social welfare policy: The Social Security Act of 1935. Political Science Quarterly 112(2): 217–235. Derthick, Martha. 1990. Agency under stress: The Social Security Administration in American government. Washington, DC: Brookings Institution. DeWitt, Larry. 1997. The civilian war benefits program: SSA’s first disability program. Social Security Bulletin 60(2): 68–76. ——— . 2007. Financing Social Security 1939–1949: A reexamination of the financing policies of this period. Social Security Bulletin 67(4): 51–69. ——— . 2009. Frances Perkins: Political architect of Social Security. OASIS, Summer (2009): 9–10. DeWitt, Larry, Daniel Béland, and Edward D. Berkowitz. 2008. Social Security: A documentary history. Washington, DC: Congressional Quarterly Press. Epstein, Abraham. 1936. Insecurity: A challenge to America, 3rd revised edition. New York, NY: Random House. Epstein, Pierre. 2006. Abraham Epstein: The forgotten father of Social Security. Columbia, MO: University of Missouri Press. Social Security Bulletin, Vol. 70, No. 3, 2010 25 ———. 2009. Annual statistical supplement to the Social Security Bulletin, 2008. Washington, DC: Office of Retirement and Disability Policy. ———. 2010. Annual statistical supplement to the Social Security Bulletin, 2009. Washington, DC: Office of Retirement and Disability Policy. Song, Jae G., and Joyce Manchester. 2007. How have people responded to changes in the retirement earnings test in 2000? Social Security Bulletin 67(1 ): 1–15. Svahn, John A., and Mary Ross. 1983. Social Security Amendments of 1983: Legislative history and summary of provisions. Social Security Bulletin 46(7): 3–48. Swendiman, Kathleen S., and Thomas J. Nicola. 2010. Social Security reform: Legal analysis of Social Security benefit entitlement issues. CRS Report for Congress. Washington, DC: Congressional Research Service, Library of Congress (February 19). 26 http://www.socialsecurity.gov/policy