What were impacts of the Social Security Act during the Great Depression? How did it actually help to improve the conditions specifically during...

The Social Security Act was passed during the Great Depression. The original purposes of Social Security were to provide people with some financial resources during retirement or in cases of disability or unemployment. While its goals were to provide immediate help to some to some degree to people, the main portion of the Social Security benefits process didn’t begin until the early 1940s. Since Social Security was financed by taxes on both employers and employees,...

The Social Security Act was passed during the Great Depression. The original purposes of Social Security were to provide people with some financial resources during retirement or in cases of disability or unemployment. While its goals were to provide immediate help to some to some degree to people, the main portion of the Social Security benefits process didn’t begin until the early 1940s. Since Social Security was financed by taxes on both employers and employees, it actually acted as a drag on the economy and helped contribute to a recession in 1937. Thus, the initial impact was harmful to the economy because along with less government spending on jobs programs, businesses and individuals had less money to invest and spend because of the taxes from Social Security. However, eventually, Social Security provided the safety net that people came to expect from our government during difficult times. Today, Social Security is an essential program for many people.