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The Social Security Act of 1935: Old-Age Assistance
Final Submission: Policy Analysis and Recommendation Paper
Southern New Hampshire University
HSE-330: Public Policy and Advocacy
Executive Summary
This paper provides the background analysis of the Old-Age Assistance under the Social Security Act of 1935. The specific legislation was examined the political, economic and the social events that set the stage for the legislation. The analysis of the effectiveness of the programs that address the needs of the beneficiaries and the urgency of the Old-age assistance to the social issue. The review of the advantages and disadvantages of the legislation including the legal and ethical matters, diversity issues and addressing legal and ethical concerns with further strategies. The paper also measures the current and future burdens of the social security act and tackled about who was the responsible for developing, and implementing the legislation. Due to the crisis of poverty that reflects the population’s burden. The research also includes additional organizations that are interested and implemented the act. In addition to the strategies for the building support and social protections.
Preface
The goal of the Social Security Act of 1935 is to support and provide universal welfare by implementing policies that will advocate old-age benefits. The Social Security Act allows and develops the states to make better and efficient provisions for those people in need. The Act provide and implement a compensation law for the needy senior citizens, persons with disabilities, unemployed, single mothers, cripple children, injured workers and blind persons. The act also includes public health and general welfare programs for the poor children and families. The Social Security Act of 1935 aims to organize a Social Security Board that will manage and administer the human welfare, to provide adequate plans and implement effective methods that will prevent potential problems of the state, a board that will organize to raise the revenue of the county for the general welfare by means of compensation, company expenses and the taxes, the organization that will protect the resources and associates of the federal government and provide assistance for all individual needs (Social Security Act of 1935). The outstanding program below the Social Security Act of 1935 is the Title I- Grants to States for Old-Age Assistance. The program was supported by the Social Welfare Organization, a part of a federal government organization. The Old-Age Assistance was authorized by the Senate and House of Representatives of the United States of America in Congress (Social Security (n.d.)).
Background
Briefly examine how major social, political, and economic events and other legislation have set the stage for the specific legislation you are considering.
One of the most significant problems faced by the country is the economic security that affects the public and as the reflection of the problem, it results in the poverty in the nation. The outcome of the dilemma, provides the government a concept or a strategy to address and provide the needs of their constituents. This strategy is an insurance principle that once the individual engaged to the concept, the individual was covered to get the benefits from the government when he suffered loss and some cases like victims of burnt house. Historically, before the seventeenth century, the private insurance has been proposed by Lloyds of London. The strategy of Lloyds of London influenced Benjamin Franklin, the founding father of the United States of America. And in the year 1752, one of the very first insurance company in the United States was constructed by the founding father, Benjamin Franklin and it became an efficient and progressive technique to protect the assets or resources of the United States of America’s nation.
The strategy of private insurance also influenced the recent President Franklin D. Roosevelt to address the problem of economic security in the country of the United States. In the year 1900, this system is called the social insurance. This method addresses the problem regarding the issue in the economic security in the current industrial societies in the United States. The social insurance practice are for the individual that will contribute to the repository or fund of the federal government to provide a money assistance for the shareholder if ever when they become incapable of supporting themselves due to their senility, but those individual who will most benefit in this strategy are those shareholders with higher income earners in their work, in the fact that they can pay more or pay higher for their insurance than other individuals with low incomes. The technique in one of the reasons that cause the Industrial Revolution. Prompt to the economic security issue, it reflected the life of individuals in preindustrial societies like laborers and farmers. They have been affected because the federal government did not cover them in that method. The wants of the preindustrial societies to engage themselves to the security insurance turn into the revolution, because they also wanted a security insurance for their families and relatives that are incapable of working. The revolution was also generated due to the increasing population in the United States of America. The people of preindustrial societies that works harder than those families in industrial societies also needs money assistance. The advocacy started to develop to include medical services and assistance from the federal government that they should provide for the people of United States (DeWitt, 2010).
In the year 1929, the great depression had begun and all the citizens of the United States got affected. Many old workers tended to lose their jobs that led them to be incapable of supporting themselves and also their families. The widespread adversity brought support for the individuals to advocate for the old-ages, and to make proposals for an old-age assistance. The catastrophe regarding the economic security led the way for President Franklin D. Roosevelt to ask for a Social Security Legislation that will address the need of the old-ages and provide old-age cash pensions from the strategy of the social insurance since in the 1900s. The Social Security Legislation called Social Security Act of 1935 was established on August 14, 1935. This Social Security Act also provide various of programs like education programs, welfare programs, family and child support, blind person support, children and person with disabilities assistance, unemployment insurance for the victims of accidents and the Old-Age Assistance (Archives (n.d.)).
Old-Age Assistance
Effectiveness / Diverse Clientele / Urgency
The programs under the Social Security Act of 1935 are still widely used today and continuously providing benefits and security to families. The old-age assistance for the disabled, elderly and survivors provides benefits for the laborers who are insured, when the time comes that they cannot be able to support themselves due to senility or accidents. The restricted program of the federal government for the Old-Age, Survivors and the Disability Insurance cover 9 out of 10 families and workers. It was administered nationally by the United States Social Security Administration. The strategy for the U.S laborers to contribute by the means of their earnings to pay for their protection in the future. If ever the great depression happens again this act will protect the nation to easily recover from the poverty. In fact, there are over 59 million American citizens who are under the program was receiving the assistance with the total of $900 million from the Social Security Act. Those beneficiaries of the federal government will receive 0.3 percent increase in the year 2017. The Social Security Act of 1935 institute two kinds of provisions for the old-age assistance, the cash pensions for the necessitous aged per person cost $15 a month and benefits for the retired laborers (Altmeyer (n.d.)). The cash assistance for the inheritors was derived from the retail prices quantum that reflects the workers covering the necessities of the people including the transportation, clothing, food and other expense items (Loughrey, 2017).The Old-Age Assistance urgency is the expansive and rapid growth of population spurred the issue of the resources to be limited. As the number of people who engage in the program is increasing, the funds from the government that they provide to the beneficiaries becomes on bound because the government cut the resources equally. The government depends on the number of the beneficiaries and total funds (Stevenson, 1936, pp. 240).
Our Position
Social Welfare Organization
Advantage and Disadvantage
The United States Social Welfare Organization operate particularly to promote and support social welfare for the people in the community. The organization was formed to bring social improvements and provide general welfare for the community. The social welfare organization seeks for betterment programs or a legislations for acquiring social welfare purposes in a charitable way. In charitable purposes, it applies convenience for the poor, educational and medical development, minimizing the problems of the government, providing public safety, civil rights by the law, defending human rights, expunge discrimination and prejudice, and welfare of the community including the senior citizens. The Social Welfare Organization’s advocacy provides tremendous help to the citizens of the country by implementing such legislation that will grant their needs (IRS, 2016).
Diversity Issues
In the late 1700s, the United States legislature obligates the parents to protect and educate their children, but due to the industrialization and immigration, it intensifies the poverty in America until the past 1820s. The crisis in poverty of the nation continues in the later years due to the government’s poor law. The poverty reflects the industrialized nation, and the effects have led to salary deductions to the employees or even lost their jobs. The workers encountered to be designated or migrated abroad due to their job preference and were exposed to a hard working environment but low in salaries. The poverty due to an industrialized nation led to encouraging the children to work at a young age. The globalizations phenomenon quiver in the life of most nations, furthermore in the human and educational services systems (Finkelman, 2001).
Legal or Ethical matters
The purpose of the Social Welfare Organization brought them to provide assistance for the needy old-aged as a necessity. To solve the diversity issues, the federal action provides relief and government loans before the Social Security Act of 1935 established. As the development for the betterment of the program, the federal government provides a system for old-age assistance for the retired old-workers in the industry and commerce (Socialwelfare (n.d.)). The Title I- Grants to States for Old-Age Assistance under the legislation of Social Security Act of 1935 supplements the compensation from the incomes of the eligible persons for the program which are old-age pension and survivors insurance and those beneficiaries that are incapable of providing their basic living. The Social Welfare Organization advocates for the old-ages and manages the overall process of the legislature, with the help of the federal government. (Murray & Pancoast, 1945).
Improvements / Suggestions
To improve and strengthen the program of the Social Security Act of 1935, the old-age and survivors insurance must widen their scope of beneficiaries particularly those working in a non-profit organization, household employment, agriculture, the self-employed workers and specially that person with a disability. A disability assistance should be implemented by the social welfare for those disabled even though they haven’t yet reached the age limit of 65 years old due to their incapability of working. The limited responsibility of the program of the social welfare organization should be competent to provide more assistance like medical and health care for the long lasting beneficiaries using enough payments to all needy old persons. The improvements and the changes of the social security act should be legitimized by the federal government for the better development of the legislation that will reflect the burdens of the government (Murray & Pancoast, 1945).
Stakeholders and Coalition
Responsible
The government of the Unites States required the Social Welfare Organization to spread the inclusive plan for providing the elder workers and other beneficiaries under the scope of the legislation. The Social Welfare Organization support the federal action by developing the program implementation and manage the operation of the old-age assistance in the state. The social welfare policy and legislation development with the order of the federal government, private sectors, non-government organization and social welfare practitioner helps to provide strategic planning. By developing the proposed legislation program, the Social Security Board will handle and decide if the proposed or additional program will be approved. Once it was approved by the board, the federal government will make an annual payment and the financial report for the state to support the regained expenses that will be given to the beneficiaries. The states required themselves to cover some portions of the expenses. The lump sum payment of five percent from the federal government will also provide to the administrative expenses (Polici, 2009).
Beneficiaries are Stakeholders
In over 80 years ago, the effects of the program on the beneficiaries are still working. The support for the old-ages and the survivor insurance is determined mainly on the basis of the calculated benefits of the beneficiaries or the employer of the recipients contributed previously. The protective measures for the non-contributor old-age beneficiaries, mandatory and independent contributors for annuities will be applied to the retirement at the age of 65 years and above. Those retired old-aged workers and survivors only have the advantage to get the pensions with the use of their compensations that they contribute to the government’s fund (Murray & Pancoast, 1945). The federal government uses the funds in an investment income so that the income will rise and can provide the assistance for the beneficiaries and for the non-contributor beneficiaries by the operation of social welfare organization (Loughrey, 2017). The cooperation to communicate the stakeholders in the social welfare organization services reflects on achieving the goals of the programs. The strategic partnership with the successful collaboration of the plan and providing a clear understanding for the beneficiaries ensure the social welfare services to support the needy people (DSD, 2013)
Additional Stakeholders
The United States federal government was also interested in the individual states who wanted to implement the old-age assistance for the betterment of their government so that the government provides a requirement for the advocates of different countries can propose the legislation in their states. Implementing this beneficial program under the social security act, and proposing for the approval of the Social Security Board, to develop the program for the needy elderly in other states but it will depend on their government policy process if they will consider the bill. Whilst the United States federal government continue to maintain the administration of the old-age assistance, the states also cover consideration for other agencies that wants to propose new programs for other needy people (Polici, 2009).
The Social Security Board Management that are covering various services for the community with the help of management service, audit service, social welfare organization under the human resources management that supports policy and programs, service management, National Health Insurance and Corporate Services that provides services or the needy people. Their mission is to implement cost effective programs, quality service for their beneficiaries and stakeholders, and develop and protect the efficient social security programs and funds (“Social Security Board”, 2014). The organizations were also required to provide documents and reports of their program to be reviewed by the Social Security Board upon request. There are 30 countries successfully implemented and continuously gaining benefits to the Old-Age Assistance which are the states of Alaska, Arizona, Washington, Colorado, North Dakota, California, Delaware, Hawaii, Iowa, Kentucky, Maryland, Michigan, Minnesota, Wyoming, Montana, Nebraska, Idaho, Indiana, Nevada, Utah, New Hampshire, West Virginia, Maine, New Jersey, New York, Ohio, Massachusetts, Oregon, Pennsylvania, and Wisconsin (Stevenson (n.d.)). If the Social Security Board fined a difference to the approved bill, the Social Security Board has the right to stop federal payments to the states. To ensure the plan, the board’s right to stop the payment will be checked quarterly. For the states that implemented changes than the original proposed plan (Polisi, 2009).
Strategies for the Building Support
The national strategies to develop the social security, in the level of national precedence, should aspire at accomplishing the worldwide protection of the denizens by assuring the minimum level of the security of the resources The strategy should also include the access to necessary health care services, and progressively ensuring the standards of protection for the people. The strategies by national precedence and ensuring the resources of the social security system with the aim in the building will maintain the system comprehensive and sufficient (International Labour Organization, 2012)
References
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DeWitt, L. (2010). The Development of Social Security in America. Ssa.gov. Retrieved from,
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Folsom, J. (1940). Old Age as a Sociological Problem. New York: John Wiley & Sons
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